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Business Loans for Auto Shops

  • chFinancing for garages & mechanics. Borrow up to $500K
  • chRates from 7% APR
  • chApply online - Get offers from Top Lenders in Canada
up Last updated

October 15, 2025

up Written by:

Amy Orr

up Reviewed by:

Jenna West

Business Loans for Auto Shops in Canada

Canada is home to a massive community of automotive shops that have been operating and helping Canadian citizens for years. As a leading country in the world, it is often a preferred location for auto shops to set up operations. In order to expand faster, many auto shop owners often apply towards an auto shop loan especially in the initial stages. This is where you can look towards Smarter Loans as we have you covered with our vast roster of auto shop loan providers in Canada. After assisting tons of auto shops during their initial phases, our providers are able to work out terms that benefit both parties. This is especially useful as all auto loans might have different use cases being that some garage owners would like to upgrade equipment, others would choose to undergo a new wave of staffing and so on. As a leading loan directory, we have one of the fastest application processes in the industry.

Our application services are entirely online so that you can choose when and where you can apply from. Now in minutes, you can enter an application form to one of our providers and in a matter of days, hear back on the results on that very application. To ensure your automotive garage is eligible for auto shop financing with one of our providers, guarantee that your shop that is at least 6 months old and makes over $5000 a month in revenue. To see which providers we work with, see the list below.

Click the “Apply Now” to begin applying to one of our providers. If you can’t pick a provider, pre-apply at Smarter Loans instead. We will assign a team member of ours to help you find an auto shop loan provider in Canada that suits your garage.

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AMOUNT
$5K - $500k
INTEREST RATE
Varies
TERMS
5 -9 Months
AMOUNT
$5K - $1M
INTEREST RATE
5 to 25%
TERMS
6 to 48 months
AMOUNT
$10K - $1.5M
INTEREST RATE
From 7.99%
TERMS
3 - 24 Months
AMOUNT
$5K - $500K
INTEREST RATE
Varies
TERMS
4 - 12 Months
AMOUNT
$10,000 - $300K
INTEREST RATE
From 8.39%
TERMS
3 - 24 Months
AMOUNT
$5K - $300K
INTEREST RATE
From 7.99%
TERMS
Fixed, 4 - 18 Months
AMOUNT
$5K - $800K
INTEREST RATE
From 7.99%
TERMS
6 - 24 Months
AMOUNT
$15K - $1M
INTEREST RATE
From 8%
TERMS
3 - 24 Months
AMOUNT
$5K - $500K
INTEREST RATE
From 9.99%
TERMS
2 - 24 Months
AMOUNT
$5K - $500K
INTEREST RATE
From 7.99%
TERMS
6 - 24 Months
AMOUNT
$5,000 - $5 Million
INTEREST RATE
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TERMS
12 months
AMOUNT
$5K - $50M
INTEREST RATE
From 7%
TERMS
5 - 96 Months
AMOUNT
$2.5K - $1M
INTEREST RATE
From 7.5%
TERMS
3 - 72 Months
AMOUNT
$5K - $2M
INTEREST RATE
From 7.99%
TERMS
2 - 36 Months
AMOUNT
$1,000 - $1.5M
INTEREST RATE
From 2% per Month
TERMS
1 - 12 Months
AMOUNT
$5K - $300K
INTEREST RATE
From 7.99%
TERMS
3 - 12 Months
AMOUNT
$250 - $1M
INTEREST RATE
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TERMS
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Best Types of Business Loans for Auto Repair Shops


Overall, auto repair shops can get a lot of value from Canada Small Business Financing Program (CSBFP) loans. That's because CSBFP loans come with limits on their interest rates. The Government of Canada shares the risk with these lenders and sees to it that borrowers get reasonable rates.

Not every kind of business or purchase can be supported by the CSBFP. However, many purchases an auto shop would make can be financed. Particularly useful options include building and equipment purchases or improvements.

When it comes to the actual types of loans suited to auto shops, there are a few options.

Merchant Cash Advances

Merchant cash advances
aren't offered through the CSBFP, but they have a lot to offer auto shops. MCAs allow you to gain an upfront sum of cash in exchange for a portion of future credit card sales. They are typically granted very quickly and have low borrowing requirements. However, they usually cost more than the simpler types of loans.

Term Loans

Business term loans can be used for any business reason. A simple upfront sum of cash can be used to make a large purchase or several smaller ones. One popular reason to take out a term loan would be to pay off or consolidate other debts. When used properly, term loans are good for almost any regular financing need.

Term Loans

Business term loans can be used for any business reason. A simple upfront sum of cash can be used to make a large purchase or several smaller ones. One popular reason to take out a term loan would be to pay off or consolidate other debts. When used properly, term loans are good for almost any regular financing need.

Revolving Line of Credit

A revolving line of credit is a very convenient long-term financing option. If your auto shop needs constant funding, a line of credit is likely the way to go. A revolving line of credit will usually come with a higher APR than a business term loan. However, they will also give you more flexibility.

Equipment Loans

Equipment loans are like term loans, but they allow you to use the equipment you purchase as collateral. This can help you avoid the more stringent collateral requirements that other loans may demand. Equipment loans may come with better rates as well.

small business loans

How do you Apply for a Small Business Loan for an Auto Repair Shop?


The first step for any business loan will always be choosing your lender. You should choose your lender based on the kind of financing you need. Then, choose the lender that offers you the best deal you can find with your business experience and credit score.

Auto shop loans typically require:

· A credit report
· Applicable licensing
· Business financial statements
· Whatever documents a lender asks for

Auto Repair Store Loans FAQ


How long does it take to get a loan for an auto repair store?

This depends on where you get your loan. Banks will typically take anywhere from ten days to a couple of months to approve your loan. Online lenders are usually much faster, taking anywhere from one day to a couple of weeks.

Can I get a business loan for an auto repair shop with bad credit?

Yes, you can. There are business lenders that offer bad credit loans to any business borrowers with low credit scores. Then, there are other lenders who provide loans to business owners with a wide range of credit scores.

In any case, you can expect to be rejected by many lenders if you have bad credit. You can also expect worse terms and interest rates on any loans you take out. However, you will almost always have access to at least a few business loans.

How big of a business loan can I get for an auto shop?

CSBFP loans can grant you up to $1,000,000. You will find similar limits from many business lenders. However, the amount any lender will give you will depend on their assessment of your business. If your business is large and profitable, lenders will likely be more willing to offer you a larger loan. Alternative and online business lenders typically would lend no more than 500,000. The loan sizes are typically between 40,000 and 150,000.

Expert Review & Editorial Standards

This page was researched, written, and reviewed by financial professionals with expertise in Canadian lending regulations. All information is regularly updated to reflect current rates, terms, and regulatory changes.

Jenna West
Reviewed By

Jenna West

Financial Writer & Content Director

Jenna has covered the Canadian FinTech and consumer lending industry since 2017. She specializes in regulatory updates, consumer protection, and helping Canadians navigate complex financial products.

  • 8+ years analyzing Canadian consumer lending
  • Monitors FCAC and provincial regulatory changes
  • Specializes in personal loans and alternative lending
Amy Orr
Written By

Amy Orr

Financial Content Specialist

Amy is a financial writer with 10+ years covering Canadian, U.S., and U.K. financial markets. She holds a Masters in Finance from the University of Edinburgh Business School and formerly worked in the hedge fund sector.

  • Masters in Finance, University of Edinburgh
  • Former hedge fund professional
  • Published in major financial publications

About Smarter Loans

Canada's independent lending comparison platform since 2016. Trusted by over 2 million Canadians and recognized by the Toronto Star as "the GPS of FinTech Lending." Featured in the National Post and major Canadian publications.

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Every page undergoes research, expert writing, fact-checking, and review by our Financial Content Director. We verify all rates, terms, and regulatory information against official sources including FCAC guidelines and provincial lending regulations.

Last Updated: October 15, 2025 | Next Review: Ongoing monitoring

Awesome G. profile pictureAwesome G.
04:46 26 Feb 25
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Pat M. profile picturePat M.
03:10 26 Feb 25
Good place to get a loan
Chris “Stufphr” H. profile pictureChris “Stufphr” H.
02:07 26 Feb 25
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Dan Bott (. profile pictureDan Bott (.
01:41 26 Feb 25
Very Helpful, was assisted in a timely fashion and was ultimately able to receive assistance; I highly recommend!!!
joel K. profile picturejoel K.
22:59 25 Feb 25
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Nate C. profile pictureNate C.
13:22 27 Oct 24
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Vincent J. profile pictureVincent J.
07:08 23 Oct 24
Good place for borrowing a bit of money 😁
Kels H. profile pictureKels H.
06:41 23 Oct 24
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Tara H. profile pictureTara H.
16:23 16 Oct 24
From beginning to end, my experience was great! Very professional and personable agents. They only asked questions that were needed for the loan and payments were extremely reasonable. Would recommend to anyone who needs emergency funds.
A S. profile pictureA S.
19:43 11 Oct 24
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