What is the best business funding for auto dealerships?

The most common options for auto dealerships are business line of credit, business term loans, merchant cash advance, sba loans. The best fit depends on your time in business, revenue, credit and what the funds are for.

Can auto dealerships get funding with bad credit?

Often yes. Revenue-based products such as merchant cash advances and collateral-backed products like equipment financing weigh revenue and assets more than credit.

How much funding can auto dealerships get?

Revenue-based providers commonly approve about 50%–150% of average monthly revenue. Term and SBA loans may go higher for established businesses.

What documents do auto dealerships need?

Usually 3–4 months of business bank statements, ID and a voided check; larger loans add tax returns and financial statements.

Industry funding

Business Funding for Auto Dealerships

The most common business funding options for auto dealerships are business line of credit, business term loans, merchant cash advance and sba loans. Independent dealers use floor-plan lines and working capital.

Last updated October 23, 2026

Typical funding needs for auto dealerships

Floor plan
Facility
Working capital

Funding options compared

Comparison of business funding options (industry estimates)
Option	Amount	Term	Typical cost	Speed	Credit
Business Line of Credit	$10k – $500k	Revolving; draws 6–24 mo	10% – 60% APR	1 – 7 days	600 – 680+
Business Term Loans	$25k – $2M	1 – 10 years	8% – 45% APR	1 day – 4 weeks	650 – 680+
Merchant Cash Advance	$5k – $500k+	3 – 18 months	1.10 – 1.50 factor	24 – 72 hours	500+ often accepted
SBA Loans	$50k – $5M	10 – 25 years	Prime + spread (capped)	30 – 90 days	680+

Typical requirements

6–24 months in business depending on product
$10k+ in monthly revenue for revenue-based options
3–4 months of business bank statements
580–680+ credit depending on product

Frequently asked questions

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Reviewed by

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Reviewed for accuracy against current market practices

Rates and ranges on this page are typical market estimates for educational purposes, not offers. How we make money.