MCA leads for auto repair

What a auto repair file looks like

One of the steadiest verticals a funder will see and one of the most consistently underrated by brokers. Independent shops run high card volume, non-discretionary demand and a repeat customer base — and a meaningful share of their revenue arrives from insurers rather than the people whose cars they fixed.

How this vertical underwrites

• Collision work is billed to insurers, so a shop can be busy for six weeks before the money lands. Mechanical repair is paid at the counter. A statement mixing both reads as inconsistent unless someone explains the split.
• Parts are bought on supplier credit lines, which do not show as positions but do compete for the same daily cash.
• Card volume is high and genuine, which makes a daily remittance sit comfortably against receipts — this is the profile advances were originally built for.
• Equipment purchases — alignment racks, scan tools, lifts — produce single large withdrawals that look alarming out of context and are usually the healthiest thing in the file.

The general order underwriters work in is covered in what funders actually look at. The points above are what differs here.

Why auto repair deals get declined

Funder appetite

Broadly positive and rarely contested. Auto repair rates well with most funders because demand does not disappear in a downturn — people repair rather than replace. Where appetite narrows is collision-heavy shops, because the receivables are institutional and slow.

Questions