pro finance blog
Menu
  • About Me
  • Hire Me
  • Contact Me
  • Submit a Guest Post
    • Privacy Policy
    • Disclaimer
Menu
small commercial repair

Tips for Financing a Small Commercial Repair Business

Posted on October 8, 2021October 8, 2021 by Tina Roth

There are a number of fundamental reasons why people borrow for smaller business operations. For fledgling and start-up businesses, this will likely be for the purchase of working stock and equipment or to provide a reserve of working capital.

For the more established business, finance may be sought as an injection in order to stimulate further business growth.

Regardless of the underlying reason, consider the following commonsense tips before making a formal approach to a lending institution.

Understand the state of related businesses

Whether it be a metal workshop, an automotive crash repair garage, or a plastic welding venture, the commercial wellbeing of any small repair business is intimately tied to the larger industries that support it with customers and trade. For example, a company providing repairs and maintenance work for spas and hot tubs is reliant upon the number of customers in the region who own those products. In the same way, a panel beating business relies upon local trade from car and commercial vehicle owners.

Before approaching a lending institution for finance, spend some time researching related business– in other words, the potential client base for the repair business. This prior study will not only provide a personal sense of commercial perspective, but it will also demonstrate to the financier that the potential borrower has done their homework in studying the market.

Formulate a clear business plan

Spending some time researching the potential market is a good precursor to the next important fundamental – developing and documenting a sound business plan. Once again, this exercise will not only be of great personal benefit in clarifying just how realistic the business objectives are, but importantly, it is the key document that a finance lender will employ in making their decision whether to extend finance.

The business plan assists the business owner in identifying commercial threats and opportunities. It should typically include the following key information:

  • A general description of the business and the industry it is involved in.
  • An analysis of the business competition.
  • The sales and marketing plan to be implemented.
  • Projected sales and financial position.
  • Cash requirements.

A well-researched, concise business plan will go a great way to instilling confidence in the lender and put them on-side with the business finance proposal.

A good range of business plan templates can be found on the internet and will assist in directing thinking to research these key areas.

Plant & equipment financing

When considering options for acquiring plant or equipment, generally, a decision is made to either lease or purchase. A lease typically involves a lower commitment than an outright purchase, but there may be some restrictions on the equipment lease contract with regards to how you use the equipment.

For financing equipment purchase, the financier retains an interest in the asset until the money and any interest is paid back. A benefit of purchasing over lease is the greater degree of freedom in operating and customizing that equipment.

Prior to approaching a financier, investigate the range of potential equipment options available for your intended purchase. Consider presenting the financier with a range of potential options which will ably meet the needs of the business.

Preparation is key

Spending some time in preparation and market research prior to that all-important meeting with a financial lender will go a long way toward inspiring confidence in the business proposition and assist the business proprietor in seeing the way forward clearly and realistically.

Category: Small Business

Leave a Reply Cancel reply

You must be logged in to post a comment.

About Me

finance blogger

The idea of starting a blog has been hitting me for long; I took it seriously after falling into a spiral of debt and recovering from it.

I have been anxious all through the financial difficulties. I see that same anxiety in the eyes of people, whose ill fate has put them at odd with financial repose.

It makes me compassionate. Out of this compassion and goodwill, I started this blog. I wanted to help all those, who are facing financial distress..




  • Phuket Real Estate
    Why You Should Invest in Phuket Real EstateJanuary 24, 2023
  • Corporate Governance
    Corporate Governance: What Are the 3 Core Principles of Good Corporate Governance?December 17, 2022
  • Successful Retirement
    How To Plan For Successful Retirement At 50: 5 Steps To Get Started OnNovember 4, 2022
  • Online Money Transfer
    Do You Still Transfer Money Internationally With Your Bank? There Are Better Online Solutions For ThatOctober 14, 2022
  • finance
    Important Roles of the Minister of FinanceSeptember 16, 2022
  • Avoid for New Businesses
    5 Forecasting Faux Pas to Avoid for New BusinessesSeptember 16, 2022
  • Affecting Pensions
    How Inflation Is Affecting PensionsSeptember 2, 2022
  • Content Writing
    The Complete Guide to Improving Your Content Writing SkillsAugust 30, 2022

    ProFinance Blog is dedicated to help people who are struggling with their personal finances. We have learned the lessons first hand and know how real the struggle is. Being compassionate about the personal finances and blogging about is our way to help people know more about different situations and how effectively they can handle it. So take control of your finances now and take actions towards gaining financial freedom and security. Join us in the mission to self-educate, learn and help others by sharing valuable information on finances. Here you will find information, tools and techniques on various aspects of finances and learn how you can use the information and implement it to make your financial life better than ever.Join us in our mission to financial freedom.

    • Phuket Real Estate
      Why You Should Invest in Phuket Real Estate
    • Corporate Governance
      Corporate Governance: What Are the 3 Core Principles of Good Corporate Governance?
    • Successful Retirement
      How To Plan For Successful Retirement At 50: 5 Steps To Get Started On
    © 2023 ProFinance Blog | Powered by Minimalist Blog WordPress Theme