The best equipment financing for an auto repair shop depends on what you are buying: a lift or an alignment machine is financed differently from a scan tool that goes stale in three years. Merchant Fund Express is our recommended funder if you need to move fast or buy used; National Funding stands out for new or used equipment up to $150,000 with no required down payment; OnDeck fits a term loan once you have a year in business; and an SBA 7(a) usually costs less on big projects, if you qualify.
In a shop, every bay without a lift and every car you turn away because you lack the right diagnostic tool is money going to the shop down the street. Here we compare the options using the numbers each one publishes and give you clear rules for deciding what to finance, with what, and over what term.
Key takeaways
- Merchant Fund Express is our recommended funder for urgent, used or installation-heavy equipment: FICO 500+ and decisions often in 2 to 4 hours.
- National Funding lists new or used equipment up to $150,000 with no required down payment.
- OnDeck offers loans from $5,000 to $400,000 but asks for 1 year, $100,000 in annual sales and a 625 FICO.
- Finance a scan tool over a short term: it becomes obsolete long before a lift does.
- Budget separately for lift anchoring, concrete and electrical work.
- Add up all of your weekly payments before taking on a new one.
The best equipment financing for auto shops, ranked
Our criteria: speed, minimum time in business, minimum credit, ITIN or non-citizen owner acceptance, documents, amounts and collateral. No made-up ratings; the details are in how we rank business funding options.
- Merchant Fund Express (recommended funder). It reviews your sales and deposits, not just your credit, with amounts from $5,000 to $5,000,000, credit from FICO 500 and decisions that often come back in 2 to 4 hours. It does not require collateral in most cases, offers Spanish-speaking support and accepts applicants with an ITIN, no SSN needed. It works for replacing a failed compressor, buying a used lift from another shop, or paying for the anchoring, concrete and electrical work that equipment financing does not always cover.
- National Funding (equipment financing). According to its site, it finances new or used equipment up to $150,000, can cover up to 100% of the cost and requires no down payment or upfront fees. It serves the auto repair industry among others. It fits lifts, alignment machines, tire changers and wheel balancers.
- OnDeck (term loan). It lists loans from $5,000 to $400,000 with terms up to 24 months. It asks for at least a year in business, $100,000 in annual revenue, a 625 personal FICO and a business checking account. Useful for an equipment package with predictable payments.
- Credibly. It offers $5,000 to $600,000. It generally asks for 6 months in business, credit from 500 and $15,000 in average monthly deposits. An option for younger shops with good volume.
- SBA 7(a) loan through your bank. It goes up to $5 million and usually costs less, but it takes weeks, requires more paperwork and, since March 1, 2026, requires 100% of owners to be U.S. citizens or nationals. It makes sense for big projects, like equipping a second location.
- Tool truck payment plans. The tool vendors who visit shops usually offer weekly payments on tools and scan tools. They are convenient, but they add up: keep track of all your weekly payments before adding another.
Quick comparison
| Option | Amounts | Minimum time | Minimum credit | Down payment | Used equipment |
|---|---|---|---|---|---|
| Merchant Fund Express | $5,000 to $5,000,000 | Based on your sales | FICO 500+ | Collateral not required in most cases | Yes, it is working capital |
| National Funding | Up to $150,000 | Not listed on that page | Not listed | Not required | Yes |
| OnDeck (term) | $5,000 to $400,000 | 1 year | FICO 625 | Not listed as a requirement | It is capital, not equipment financing |
| Credibly | $5,000 to $600,000 | 6 months | 500 | Not listed as a requirement | It is capital |
| SBA 7(a) | Up to $5,000,000 | Depends on the bank | Depends on the bank | Depends on the bank | Depends on the bank |
If you hold a green card or an ITIN, the SBA 7(a) is off the table under the 2026 citizenship rule. This guide is not immigration advice; if you have questions, talk to an immigration attorney about your situation. For other ways to fund the whole shop, see business loans for auto repair shops.
What to finance with what, item by item
Every piece of equipment has a different useful life. Match the payment term to how long it lasts:
| Equipment | Hidden costs | What usually fits |
|---|---|---|
| Two- or four-post lift | Anchoring, slab thickness, electrical | Longer-term equipment financing; installation with working capital |
| Alignment machine | Calibration, space and software | Equipment financing |
| Tire changer and balancer | Enough compressed air | Equipment financing or working capital |
| Diagnostic scan tool | Annual software subscription | Short term; it goes obsolete fast |
| A/C recovery machine | Refrigerant handling certification | Equipment financing or working capital |
| Compressor | Electrical work and air lines | Working capital if it is an emergency |
The most expensive mistake is financing a scan tool over five years: by the time you pay it off, it no longer reads new cars. The second is not budgeting for lift installation. For more examples, see equipment financing for auto repair.
Buy, lease or buy used
Rules experienced shop owners use:
- Buy heavy, durable equipment: lifts, compressors, presses.
- Lease or use a short term for things that change fast: scan tools, ADAS calibration gear, software.
- Buy used lifts and presses from known brands, checking cables, cylinders and certification; have a technician inspect them.
- Avoid used diagnostic equipment without current updates.
- Count your weekly payments: between the tool truck, rent, payroll and new financing, cash flow tightens quickly.
A useful question before you buy: how many more jobs per week does this equipment let me do? If a second lift lets you handle more cars a day and the demand is there, new work covers the payment. If the equipment is for a service you do not sell yet, start smaller or pick a term your current cash flow can carry.
This applies especially to equipment for new services, like ADAS calibration or hybrid and EV work. They can be good business, but they require training, space and customers who ask for them. Before financing that gear, check how many of those cars come into your shop today, how many you send elsewhere and what shops in your area charge for the service. With that data, the decision stops being a gamble. If it is hand tools you need, our guide to mechanic tool financing covers the options.
Documents, mistakes and how to compare
Have this ready before you apply:
- Equipment quote. Brand, model, new or used, and installation cost listed separately.
- Business bank statements. Three to six months, with card, transfer and deposited cash receipts.
- Reports from your shop management system. They show how many cars you service and your average repair order.
- Your lease. If the lift is anchored, check what your lease says about improvements and what happens if you move.
- Licenses and insurance. Shop license, liability insurance and, if it applies, refrigerant handling certification.
Common mistakes: buying a lift without confirming your slab can hold it, piling up weekly tool payments without tracking them, and accepting the first offer without comparing payment frequency and term. If your shop takes a lot of cash, deposit it; a funder only sees what reaches the bank.
How to compare offers. Put them side by side with the same information: amount you receive, payment frequency, term, upfront fees and whether there is a discount for paying early. Choose the one your shop can handle in its slowest month, which for many shops is when repairs dip after tax season or over the year-end holidays.
Our recommendation
If you need the equipment now, you are buying used, or installation is a big part of the cost, Merchant Fund Express, our recommended funder, decides based on your sales: applying is free and does not affect your credit. For new equipment with a dealer quote, compare National Funding. And if you are equipping a whole location and qualify, an SBA 7(a) usually costs less.
What matters is that the term and payment frequency match the life of the equipment and the rhythm of your shop, not what the salesperson wants to close today. Leer en español.
Frequently asked questions
What is the best way to finance a shop lift?
Generally equipment financing, because a lift lasts many years and backs the debt. National Funding, for example, lists up to $150,000 with no required down payment, new or used. Budget separately for anchoring, concrete and electrical, which often are not included in equipment financing.
Can I finance shop equipment with bad credit?
Yes, there are options. Merchant Fund Express works with FICO 500 and up and reviews your sales and deposits, and Credibly lists 500 as its floor with 6 months in business and $15,000 in monthly deposits. With low credit, offers usually cost more, so compare at least two in writing.
Is it worth financing a diagnostic scan tool?
Yes, but over a short term. Scan tools and their software go obsolete quickly and usually carry an annual subscription. Financing one over five years means you keep paying for a tool that no longer reads new cars. Consider leasing it or paying it off over the shortest term your cash flow allows.
Can I finance a used lift bought from another shop?
Some equipment funders finance used gear, but many only when the seller is a dealer. If you are buying from another shop or at auction, working capital based on your sales gives you more freedom. Have a technician inspect the lift before you pay.
How long do I need to be in business?
It varies: Credibly lists 6 months, OnDeck asks for 1 year and $100,000 in annual sales, and Merchant Fund Express looks at your sales history. Banks and the SBA 7(a) usually want more history and, since March 2026, owners who are U.S. citizens or nationals.
Do weekly tool truck payments count as debt?
For your cash flow, yes. Even if they do not always show on your credit report, they leave your account every week, and a funder can see them on your bank statements. List all of your weekly payments before adding new financing.