How Auto Repair Shops Can Benefit From Payroll Financing

If you run an auto repair shop, you know that overhead expenses can make it difficult to manage your cash flow. In addition to having a high-quality location and maintaining the necessary equipment, you also have to manage payroll for auto technicians and other staff. Even if you have a steady flow of customers coming through your door, these costs can make it difficult to pay your employees on time from one month to the next. Fortunately, payroll financing can give your auto body shop the influx of cash it needs to continue offering automotive repair services, without worrying about your paying your staff.

The Costs Of Running An Auto Repair Shop

Whether your business focuses on tire repair or comprehensive car repair, you will have a great deal of overhead to manage. A trained car mechanic commands relatively high rates. Even if you only have one mechanic on your payroll, you will probably have other employees to manage payments and accounting. Thus, running an auto mechanic shop means paying for a lot of labor costs.

None of these costs factor in other expenses that you will need to consider. For example, you will likely need an industrial lift to do more complex auto repairs, to say nothing of replacement parts and standard tools of the trade. In fact, auto repair shops require more equipment (and equipment maintenance) than most other types of repair businesses.

There is also the issue of real estate. It takes a lot of space to store multiple vehicles overnight. In other words, you will need a large parking lot, as well as secure storage space for vehicles that are waiting to be repaired or picked up by their owners. Naturally, you will need to include the costs of renting or owning so much space when managing your monthly, quarterly, and annual budget.

Choosing Payroll Financing For Your Auto Repair Shop

Payroll financing is the equivalent of a short-term small business loan with low interest rates. Not only are the interest rates low, but you can also pay the loan back on your own schedule. In other words, you will only have to pay for the interest as long as you need the money. Once you receive the funds from pending invoices, you can quickly pay off the loan and avoid letting interest accumulate.

Rather than getting stuck in a long-term cycle of debt through predatory lenders, you can get a quick, affordable cash influx with a payroll funding company. Not only does payroll financing offer low rates and flexible payment terms, but it is also far more accessible than traditional small business loans. This way, you can keep your auto repair shop up and running, without having to delay payment to your staff.

Cash flow issues may affect many auto repair shops, but it doesn’t have to be the case for your business. If your organization requires a small business loan for payroll to operate efficiently, call Payro Finance today to see how we can help.

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