£31,999 across two facilities. An automotive business that keeps coming back.
Vehicle/parts stock, workshop equipment and working capital.
Two facilitiesRead the transaction
Transport and logistics
Garage and MOT centre finance for independent workshops
Fund diagnostic kit, lifts, MOT bays, EV training and tyre stock, or smooth quiet months, with finance suited to independent garages and MOT stations.
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- No obligation discussion
- Access to 300+ lenders
- Free to enquire
“A very professional and results-oriented approach to funding.”
- Amount
- From £10,000 to £10 millionLarger amounts through secured, property and asset-based finance
- Security
- Secured or unsecuredOptions compared for your case
- Suitable businesses
- Sole traders to limited companiesPartnerships and LLPs too
- Lender panel
- 300+ lendersWhole-of-market search
In short
Most garages finance lifts, brake testers, alignment rigs and diagnostic kit through hire purchase or leasing, because the equipment secures the agreement.
Mixed projects such as a reception refit plus EV training suit an unsecured loan, while card-heavy workshops with seasonal MOT peaks may use a merchant cash advance or a revolving facility for parts and tyre stock. Lenders read your bank and card statements, work mix and existing agreements.
- Diagnostic equipment, software
- Hydraulic lifts, two- and four-post
- MOT testing equipment, such as brake
- Tyre changers, wheel balancers
- Insulated tools, charging points
“He is fair and always gives advice that is in the best interest of his clients.”
About garage and mot centre finance
Garage and MOT centre finance is business funding for independent garages.
Garage and MOT centre finance is business funding for independent garages, MOT testing stations, tyre centres, body shops and vehicle repair workshops. It helps workshops keep up with expensive equipment, stock parts and tyres, and ride out quieter months. Smart Funding Solutions is a broker, not a lender: we approach lenders that understand workshop equipment and card-based trade.
Independent garages face a particular squeeze. Every new generation of vehicle needs updated diagnostic software and subscriptions, hybrid and electric cars need insulated tools and trained technicians, and MOT bays must be kept to the standard the Driver and Vehicle Standards Agency (DVSA) expects. Meanwhile workload follows the MOT calendar and the weather, and parts suppliers want paying on their terms.
Running a recovery service as well? See recovery truck finance.
Funding needs
What garage finance can be used for
- Diagnostic equipment, software and manufacturer data subscriptions
- Hydraulic lifts, two- and four-post ramps and service bay upgrades
- MOT testing equipment, such as brake testers, headlamp testers and emissions analysers
- Tyre changers, wheel balancers and alignment equipment
- Insulated tools, charging points and technician training for hybrid and electric vehicles
- Buying parts and tyres in bulk to secure better prices
- Refurbishing the workshop, reception and customer waiting area
- Recovery vehicles and courtesy cars
Quick enquiry
Prefer a quick call back?
Not ready for the full application? Leave a few details and a broker will call you to talk it through. It is free, with no obligation.
- One short conversation, no paperwork yet
- Whole-of-market search across 300+ lenders
- Or call us on 01244 267694
A transaction we arranged
£40,000
£40K for an automotive business.
Matched to the company's current trading and its plans for what comes next.
Read the transaction- Sector
- Automotive
- Structure
- Business facility
- Outcome
- Completed
The operating cycle
Where finance fits into your garage and mot centre
Cash leaves the business at every stage before it comes back. Each stage below is a point where the right facility can carry the gap.
-
01 Win work
Orders, contracts or customers secured.
-
02 Buy in
Stock, materials and equipment paid for up front.
Asset finance → -
03 Pay people
Wages and suppliers paid on time.
Working capital → -
04 Deliver
The work is done or the goods are sold.
-
05 Get paid
Customers pay, sometimes weeks later.
Invoice finance → -
06 Tax
VAT and Corporation Tax fall due.
HMRC loans → -
07 Invest
Growth, a new site or new equipment.
Business loans →
Funding needs
Funding options for garage and mot centre businesses
Choose the need, and we’ll show you how lenders usually structure it.
Finance options for garages and MOT centres
01
Asset finance for workshop equipment
Lifts, brake testers and alignment rigs have a long working life, which makes asset finance a natural fit. With hire purchase you pay fixed instalments and own the equipment at the end; with leasing you use it for a set term and can upgrade, which suits diagnostic kit that dates quickly. The equipment secures the agreement, so it is often easier to arrange than an unsecured loan of the same size.
02
Unsecured business loans
A lump sum repaid in fixed monthly instalments, without a charge over property or equipment. For a garage it suits mixed projects that asset finance cannot cover, such as a reception refit, EV training and marketing together. Directors or owners usually give a personal guarantee.
03
Merchant cash advance
Most customers pay for MOTs, servicing and repairs by card. A merchant cash advance provides an upfront sum repaid as an agreed percentage of future card payments, so you repay more in busy months and less when bookings dip. It is flexible but usually costs more overall than a term loan, so compare the total repayable.
04
Revolving credit facility
A limit you draw on and repay as needed, with interest only on what you use. Garages typically use it to buy parts and tyres ahead of busy periods or to cover a supplier bill before customer payments clear.
05
Debt consolidation
If you have several loans, equipment agreements and credit cards, combining them into one facility can simplify repayments. Check the total cost over the new term and any early settlement charges.
Costs of running a garage to plan for
Beyond equipment, a garage carries significant fixed costs: rent or mortgage, business rates, insurance for premises, customer vehicles and liability, utilities, and waste disposal. Garages handling used oil, batteries and tyres must follow hazardous waste rules. MOT testing stations must be authorised by the DVSA and keep equipment calibrated and maintained. Build these costs into your cash flow forecast before borrowing.
Garage loans with bad credit
A poor credit history makes bank finance harder, but it does not always rule you out. Merchant cash advance providers often focus on card takings, and asset finance is secured on the equipment. Expect fewer options and higher costs. Our guide to bad credit business loans explains what to expect.
Underwriting
What lenders look at in a garage or MOT centre
01
How long you have been trading, and recent accounts
02
Monthly turnover and card takings from bank and merchant statements, including seasonal peaks around MOT renewals
03
The mix of work: MOTs, servicing, repairs, tyres, fleet or trade accounts
04
Existing finance, including equipment already on hire purchase or lease
05
Whether you own or lease the premises, and the length of any lease
06
Business and personal credit history
07
For asset finance, the equipment details and supplier quote
Lenders set their own minimum trading periods and turnover levels. Finance of £25,000 or less to sole traders and small partnerships can be regulated consumer credit.
Checklist
Documents to have ready
- Recent business bank statements and card merchant statements
- Latest accounts or tax returns
- Supplier quotes for any equipment
- Details of existing finance agreements and your premises lease
- ID for the owners or directors
How we help
- Tell us what you need and share recent bank and card statements.
- We work out whether asset finance, a loan, a cash advance or a mix fits best.
- We approach lenders on our panel that suit garages and MOT centres.
- We set out the offers with total costs side by side.
- The lender makes the final decision; decisions can come within a few working days once it has everything it needs.
It is free to enquire; any broker fee is disclosed separately before you proceed. If you also buy and sell vehicles, see our guide to motor trade finance, or browse other sectors on our SME loans hub.
FAQs
Questions clients ask
Can I get finance to start a new garage?
It is harder without trading history, but possible. New garages often use asset finance for equipment, with a deposit, alongside personal funds or a government-backed start-up loan. Lenders will want a business plan, evidence of your experience in the trade and your personal credit history. Merchant cash advances become an option once you have card takings.
Can I get garage and MOT centre finance with bad credit?
It can be possible, but options narrow and costs usually rise. Asset finance for lifts, brake testers and diagnostic kit is secured on the equipment, so it is often easier to arrange than an unsecured loan, and some card-based funding focuses more on takings than credit history. Lenders still review your credit file and want past problems explained. Our guide to bad credit asset finance covers what lenders consider.
Can a sole trader mechanic get garage finance?
Yes, sole trader mechanics and small workshops can get garage finance for tools, lifts, diagnostic equipment and vans. Lenders look at bank statements, card takings, tax returns and personal credit history. Finance of £25,000 or less to sole traders and small partnerships can be regulated consumer credit, which carries extra protections. Our page on sole trader loans covers the main borrowing options.
Can I finance used MOT testing equipment?
Yes, many lenders will fund used MOT testing equipment such as brake testers, headlamp testers and emissions analysers, provided it comes from a reputable supplier and meets the standard the DVSA expects. Age, condition and resale value affect the deposit and term. Get a written quote showing the equipment and any installation or calibration costs. Our page on used equipment finance explains how lenders assess second-hand kit.
How long does garage and MOT centre finance take?
Garage and MOT centre finance for equipment can often be arranged within a few working days in straightforward cases, once the lender has the supplier quote, recent bank statements and accounts. Larger loans, newer businesses or more complex credit histories can take longer. Having your trading figures, existing finance agreements and a clear list of the equipment needed ready helps lenders reach a decision sooner.
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What our clients say
“Simon was fast, kept us updated at all stages and was a real pleasure to work with on our asset finance. I highly recommend this company: excellent service all round.”
“Spoke with Simon, who managed to get me the loan I needed promptly. The whole process was very smooth and was completed within a few days.”
“Getting a business loan can feel like a bit of a minefield, but everything was broken down for me in great detail. Will use again in the future!”
“Simon was a pleasure to deal with and helped us find a business loan that matched our growth goals and future expansion plans.”
“I couldn’t source funding for my business, but the team got in touch within an hour and had it sorted within 24 hours. Fantastic service, and I would definitely use them again.”
Why businesses choose Smart Funding Solutions
- Access to 300+ lenders
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- No obligation discussion
- Free to enquire