How fast can a mechanic shop get working capital, and what does it cost?
Two questions every shop owner asks on the first call, answered in the order they ask them: when does the money land, and what does it cost me. The hour-by-hour timeline, the published example, and when speed is worth paying for.
The clock, hour by hour
Speed on a working capital advance comes from what is not in the file. There is no appraisal, no tax return under $500,000, no business plan and no collateral. The underwriter needs a four-minute application and your three most recent months of business bank statements, and the decision is a read of those statements by a person: deposit volume, average daily balance, NSF pattern, slowest month. That is why the offer takes hours, not weeks.
| Step | What happens | Typical timing | What you do |
|---|---|---|---|
| 1. Apply | Shop name, EIN, rough monthly deposits, what the money is for, three bank statements | About four minutes | Upload PDFs downloaded from the bank, not screenshots |
| 2. Underwriting | A person reads the statements; insurer, DRP, fleet and cash deposits all count | About four business hours | Answer the phone if there is a question |
| 3. Offer | Amount, total payback and the daily or weekly payment, in writing | Same business day | Pick daily or weekly ACH; ask about the prepay discount |
| 4. Sign | A two-page contract | Minutes | Signed before 11:00 AM ET generally funds the same day |
| 5. Funded | Wire or ACH to your operating account | Within 24 hours of a signed file | Pay the parts account, make Friday payroll |
What the money actually costs
A working capital advance is the purchase of a fixed amount of your shop’s future receivables at a discount. You are quoted a fixed total payback and a fixed payment, not an annualized rate, and the payback does not grow if you take the full term. The published representative example:
- Advance: $150,000 over 12 months.
- Total payback: $190,500, so a cost of funding of $40,500.
- Daily payment: $756, across 21 business days a month.
- Weekly payment: $3,664, if you want the debit to land with tech payroll.
- Paid off in the first 30 days: keep up to 30% of the remaining cost.
Every figure is an illustration, not an offer. Your numbers depend on your statements, and the two things that move them are the strength of the file and the term you choose. Working capital runs 3 to 18 months; a longer term lowers the payment and raises the total cost. There is no application fee. See disclosures.
Why a mechanic shop pays for speed, and when it should not
Fast money with no credit floor is the most expensive product on this site, and that is the trade. It is the right tool when the cost of waiting is higher than the cost of funding: the lift is down and the bay is earning nothing, the parts supplier wants the account current before the next order ships, a good tech has another offer by Friday, or a slow February has to be bridged to a busy April. It is the wrong tool for a second location, a buildout or buying the building — that is a term loan at 650+ FICO or SBA 7(a) at 680+, slower and far cheaper.
If the need repeats every year, a line of credit opened in a strong month costs nothing while undrawn and takes 1 to 3 business days to open, with same-day draws after that. The tire shop guide walks through that choice.
How to keep the four-hour clock honest
Most files that take longer than a day are slowed by the applicant, not the underwriter. The pattern is the same every time: a screenshot of a mobile banking app instead of the bank’s PDF, statements from a savings account the insurer checks never touch, an open advance that was not mentioned, or a voicemail box that is full. Each one adds a round trip. A complete, honest file submitted at 9:00 AM ET on a weekday is the one that funds that afternoon.
What you’ll need
- Your three most recent months of business bank statements as PDFs from the bank, four if winter is your slow season.
- The statements for the account the insurer, fleet and card deposits actually land in.
- Your EIN, a rough monthly deposit figure, and one sentence on what the money is for.
- Disclosure of any open advance, floor plan or loan.
- A phone number you answer between 9:00 AM and 7:00 PM ET.
Floors to clear before you start: $15,000 a month in business bank deposits, 6 months in business, a U.S. business bank account. No minimum credit score. If you clear them, the timeline above is what to expect. If you do not, call and an underwriter will tell you what would change it.
Related: Working capital · How to apply · How much can a body shop borrow? · General repair shops
Questions that usually follow.
How fast can a mechanic shop get working capital?
About four business hours to a real offer on a complete file, and 24 hours to funding. A clean file signed before 11:00 AM ET generally funds the same business day at Liftbay Capital.
What does a $150,000 working capital advance cost?
The representative example is $150,000 over 12 months with a total payback of $190,500: a $40,500 cost of funding, $756 per business day across 21 business days a month, or $3,664 a week. It is an illustration, not an offer; your numbers come from your statements.
Is the cost an interest rate?
No. A working capital advance is the purchase of a fixed amount of future receivables, not a loan, and is not an annualized-rate product. You are quoted a fixed total payback and a fixed payment. The payback does not grow if you take the full term, and it shrinks if you pay off early.
Does paying early save money?
Yes. Pay the advance off within the first 30, 60 or 90 days and you keep up to 30% of the remaining cost of funding. A shop that takes an advance to bridge a slow stretch and clears it when the fleet checks land pays meaningfully less than the headline payback.
What slows a file down?
Screenshots instead of bank PDFs, statements from the wrong account (the one the insurer or fleet checks do not land in), an undisclosed open advance, and a phone that does not get answered. Fix those four and the four-hour clock usually holds.
Is there an application fee?
No. Liftbay Capital does not charge an application fee, and applying does not affect your credit because the decision on working capital is made on your bank statements.
Done reading? Get a real number.
Four minutes and three bank statements. Offer in about four business hours, funded in 24.