Auto & Collision Capital

    Structured working capital for parts and labor carried ahead of insurance payment, equipment and bay buildout, vehicle inventory, and second-location expansion.

    ELIGIBLE OPERATORS

    • Collision and body shops
    • Independent repair facilities
    • Multi-bay service centers
    • Franchise and dealer service groups
    • Used vehicle dealers
    • Fleet and specialty repair operators

    CAPITAL USED FOR

    • Parts and labor ahead of claim payment
    • Paint booths, lifts and alignment equipment
    • Additional bays and shop buildout
    • Vehicle inventory and reconditioning
    • Technician payroll and recruiting
    • Second location and acquisition

    Estimate Your Capital Need

    Capital Needs Assessment. Auto & Collision

    Enter your operating profile to estimate your working capital gap and recommended facility structure.

    Estimated Capital Profile

    Claims payment gap

    $750,000

    Revenue held in the claims cycle

    Parts & materials exposure

    $90,000

    Monthly parts and materials outlay

    Estimated capital gap

    $915,000

    Identified capital need

    This figure reflects the capital carried between the day parts and labor go into a vehicle and the day the insurer or customer actually settles. Auto and collision operators typically structure around that timing rather than around a single lump sum, using a working capital line that draws as parts, payroll, and equipment obligations come due and pays down as claims and repair orders clear. Equipment purchases are usually structured separately, since a paint booth or lift package is a one-time cost that pays back one repair order at a time. A typical first facility ranges from $150,000 to $600,000 depending on bay count, insurer payment terms, and how much parts and labor cost is carried before settlement. Enter your contact information below to see how this would be structured for your operation.

    Request a Capital Review. A capital advisor will review your assessment and follow up to discuss structure options.

    Estimates are for advisory reference only. All structures subject to full financial review.

    Built for Active Auto & Collision Operations

    We work with established repair, collision, and dealer operators who put parts and labor into vehicles weeks before the insurer, the lender, or the buyer settles.

    • Collision and body shops working direct repair program and non-program claims
    • Independent repair facilities running multi-technician service schedules
    • Multi-bay service centers managing high repair order volume across locations
    • Franchise and dealer service departments carrying parts inventory and warranty receivables
    • Used vehicle dealers financing acquisition and reconditioning ahead of sale
    • Fleet, heavy-duty, and specialty repair operators servicing commercial accounts on terms

    Most clients generate $200K to $1M+ in monthly revenue and operate a fixed shop or lot with recurring repair or sales volume.

    Typical Working Ranges

    $150K to $300K

    Parts and payroll carried against open repair orders.

    $300K to $600K

    Equipment packages, added bays, and inventory expansion.

    $600K to $1.5M+

    Second location, acquisition, and full facility buildout.

    All structures are tailored to claim settlement timing and repair order volume.

    Where Capital Is Deployed

    • Parts and materials ahead of claim settlement
    • Technician payroll across open repair orders
    • Paint booths, lifts and alignment equipment
    • Additional bays and shop buildout
    • Vehicle acquisition and reconditioning
    • Technician recruiting and certification
    • Second location or shop acquisition

    Structured Review Process

    1. 01Review of repair order volume, insurer mix, and settlement timing
    2. 02Review of recent business performance
    3. 03Capital structure options presented
    4. 04Facility sized to claims cycle and bay capacity

    A Capital Advisory Approach

    We work directly with private capital sources and specialty lenders who understand automotive repair, collision, and dealer operations. That means funding structured around insurer settlement timing, parts and labor carried on open repair orders, and equipment that costs everything up front and pays back one job at a time. Not generic terms from a bank that doesn't know the industry.

    • Facilities sized to claim settlement cycles, not calendar terms
    • Equipment structured separately from working capital
    • Capacity to add bays or a second shop before it books volume
    • Long-term capital access as operations expand

    Representative Structures

    Selected engagements from recent capital structuring work. Identifying details have been generalized for confidentiality.

    Situation

    A collision center running $540K in monthly revenue across 14 bays carried roughly $120K in parts and technician labor on open repair orders at any given time. Direct repair program work settled in 38 to 55 days. Two large fleet accounts pushed past 60. Parts suppliers billed on net 30 and technicians were paid weekly, so the shop was consistently funding two months of work before the corresponding claims cleared.

    Structure Deployed

    A $600K structured credit facility was put in place as a revolving working capital line, advanced against open repair orders and settled claims receivable. Draws were scheduled against parts purchasing and the weekly payroll run. The line paid down automatically as insurer payments posted, so the balance moved with repair order volume rather than sitting drawn.

    Outcome

    The shop stopped slowing parts orders to match cash position and cycle time improved across the board. The facility ran at roughly 40 percent utilization through a normal month and had capacity available when a hail event tripled intake for six weeks.

    Situation

    An independent repair operator at $310K in monthly revenue had signed a lease on an adjacent building to add six bays. The buildout, lifts, an alignment rack, and diagnostic equipment came to about $420K. The space would carry rent, utilities, and two newly hired technicians for roughly four months before it produced enough repair orders to cover itself.

    Structure Deployed

    Capital was split into two parts. A $320K asset-based portion covered the lifts, alignment rack, and diagnostic equipment, secured by the equipment itself and amortized over its useful life. A $150K bridge facility covered buildout, rent, and technician payroll during the ramp, sized to retire once the new bays reached normal utilization.

    Outcome

    The six bays opened staffed and equipped rather than in phases. The bridge portion was retired in five months once the new capacity reached steady repair order volume, and the equipment portion continued amortizing against the throughput it made possible.