Where To Turn For Automotive Industry Financing

If you are trying to start a business in the automotive industry you may have discovered that your typical lending institutions are very hesitant to provide funding. This may not seem logical from a business person's perspective but your bank is not looking at automotive industry financing in the same way that you are.

What Types of Business are Problematic?

If you have a great idea for a new gas station, car wash, parts store, repair shop or even a truck stop you may find that your bank simply isn't interested. The reasons that they aren't interested may not be because you don' have a good location or a good business plan; it is just that in the past these types of business have been considered a risky investment for the lender.

There are several concerns, not the least is the liability issue with environmental concerns, when it comes to automotive industry financing. Waste water, waste fluids, highly flammable and explosive materials and a range of other issues create particular problems for traditional lenders. Not understanding the nature of the business and the options that you have to create an environmentally safe work environment may also lead to misunderstanding of the risk by traditional types of lenders.

What about Expansions?

Even if you have a successful garage, car wash, gas station or parts and repair shop you may find that traditional automotive industry financing is difficult to come by. You may find you have the option to borrow but you are limited to the total amount of the loan and are paying higher interest rates than are reasonable given your history in the business.

This may restrict or curtail your ability to expand by acquiring new properties and new stations or it may also limit your options in purchasing new equipment or refinancing an existing mortgage to take advantage of lower rates.

The Alternative

There are companies out there that provide automotive industry financing that are separate from your local bank. These lenders have a history of working with people in the automotive industry and have a good eye for location, market potential, current saturation of similar operations in the area and a range of other factors.

These lenders offering automotive industry financing are also up on how you can limit any concerns about environmental issues that could put heavy fines or even potential risk of closure on your business.