Auto and Equipment Dealers and Repair Shops we help
Auto and equipment dealers and repair shops carry a specific kind of capital exposure: inventory (vehicles, parts, equipment) has to be financed before it ever sells, often through floor plan financing, and repair or sales demand can swing hard with the season. An MCA layered on top of that structure to cover a slow stretch rarely stays a one-time fix.
The patterns we see most often:
- Floor plan financing stacked with MCA debt. Interest and curtailment payments on floor-planned inventory were manageable on their own — until a daily MCA debit was added for working capital.
- Seasonal repair and sales demand. Slow winter months for some shops, or slow seasons for certain equipment categories, leave fixed overhead exposed with no matching revenue.
- Parts and inventory carrying costs. Parts inventory has to be purchased and stocked ahead of demand, tying up cash that an MCA is often taken to replace.
- Warranty and manufacturer reimbursement lag. Reimbursements for warranty work can take weeks or months to arrive, creating exactly the kind of cash gap MCA brokers target.
Why auto and equipment dealers work with us
Auto and equipment dealers are attractive to MCA brokers because card and financing volume can look strong on paper while actual cash tied up in inventory and floor plan obligations tells a very different story.
We are not a lender and we are not paid on commission. We are paid by you, on a flat fee, to look at your full position — every open MCA, floor plan and equipment financing, parts inventory obligations, and your seasonal demand pattern — and tell you honestly what your options are.
Sometimes the answer is restructuring MCA debt so it doesn't compete directly with floor plan curtailment payments. Sometimes it's refinancing working capital separately from inventory financing. Sometimes the honest conversation is about settlement. Our job is to give you that picture clearly, not to sell you a product.
How a consultation works
Step 1 — Position review. We map every open MCA, floor plan or equipment financing arrangement, and parts inventory obligation against your seasonal sales and repair volume.
Step 2 — Options modeling. We model realistic paths — restructuring, refinancing working capital separately from floor plan debt, or settlement on specific positions — with costs, timelines, and risks.
Step 3 — Written decision framework. You leave with a written plan that fits your priorities: keeping the lot or shop running, preserving floor plan relationships, or protecting a personal guarantee.
What auto and equipment dealers should know about the law
A few realities shape most dealer and repair-shop MCA situations. The U.S. Small Business Administration generally suggests total debt service should not exceed roughly 30% of gross revenue for a small business — for a dealer already carrying floor plan interest and curtailment obligations, adding daily MCA debits on top of that baseline compounds quickly.
If your business has taken more than one advance to bridge successive slow seasons, our guide to evaluating an MCA stack walks through the questions worth answering before you negotiate with any funder. None of this is legal advice — it's context for sharper questions to your attorney.