Lendus.

Garage & Motor Trade Business Loans

Finance your garage, body shop, or motor trade business with competitive rates. Lendus compares 200+ lenders to help automotive businesses access the right funding.

200+ UK lenders
2-minute application
No credit check to apply
FCA-regulated brokers

Typical Range

£5k – £2m

Average Loan

£95k

for garage & motor trade

Decision Speed

24–48 hrs

for unsecured loans

Eligibility requirements

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Loan types available

Unsecured Business Loan

Rate
7.5% – 24.9% APR
Term
1 – 5 years
Security
No security required
Best for
Diagnostic equipment, tooling, marketing, stock purchases, and working capital

Secured Business Loan

Rate
4.9% – 14.9% APR
Term
1 – 20 years
Security
Workshop premises, forecourt property, or residential property
Best for
Purchasing a garage freehold, forecourt acquisition, or major workshop expansion

Asset Finance

Rate
5.2% – 12.9% APR
Term
2 – 7 years
Security
The equipment or vehicles being financed
Best for
Vehicle lifts, MOT bays, paint booths, diagnostic systems, and dealer stock vehicles

Representative example

Borrow £95,000 over 36 months at 9.9% APR (fixed). Monthly repayment: ~£3,061. Rates depend on your circumstances and the type of loan.

Market context

The UK automotive aftermarket is worth over £21 billion annually, with approximately 33,000 independent garages and 4,000 franchised dealers across the country. The sector employs around 347,000 people in vehicle maintenance and repair alone.

Common challenges

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Bad credit?

Several of our 200+ lenders work with garage & motor trade businesses that have imperfect credit. You may need a personal guarantee or higher rate, but options exist. Checking your options here does not affect your credit score, because we do not run a credit search to match you. A lender will run their own checks only if you decide to apply.

Frequently asked questions

Can I get a loan to buy an existing garage business?
Yes, garage acquisitions are well-supported by business lenders. The purchase price will include goodwill (based on customer base, MOT history, and reputation), equipment, and stock. Freehold garages command higher prices but offer long-term asset value. Lenders assess the garage's financial track record, your motor trade experience, and the strength of the customer base. Lendus can compare options from mainstream and specialist motor trade lenders.
What finance is available for setting up an MOT testing station?
Setting up an MOT bay typically costs £30,000-£80,000 including the lift, emissions testing equipment, brake rollers, headlamp aim tester, and IT systems. Asset finance is the most popular funding route, spreading the cost over 3-7 years. You will also need to apply for DVSA Authorised Examiner status and have qualified MOT testers on site. The additional revenue from MOT testing (averaging £50-£60 per test) makes this a strong investment case for lenders.
How can I finance the transition to servicing electric vehicles?
EV servicing requires specialist training (IMI Level 2-4 in Electric/Hybrid Vehicle Repair) and new equipment including insulated tools, diagnostic software, high-voltage PPE, and potentially charging infrastructure. Costs range from £5,000 to £40,000 depending on the scope. Business loans and asset finance can cover these costs. With EVs projected to make up 50%+ of new car sales by 2030, lenders view EV readiness as a positive investment in your business's future.
Is stocking finance available for used car dealers?
Yes, stocking finance (also known as stocking plans or floorplan finance) is specifically designed for motor traders. It provides a revolving credit facility to purchase vehicles for resale, with individual units financed and the loan repaid when each vehicle is sold. Typical stocking limits range from £50,000 to £500,000+. Interest is charged per vehicle per day, usually at 6-12% APR equivalent. You will need a forecourt premises and a minimum of 6 months trading history.

Equipment finance for garage & motor trade businesses

Buying a specific machine or vehicle is usually cheaper than a general business loan, because the asset itself is the security. These are the items garage & motor trade businesses most often fund, with the price range we see quoted in the UK.

Equipment Typical price range Finance page
Adas Calibration £10k to £45k Adas Calibration finance
Air Conditioning Service Unit £2k to £14k Air Conditioning Service Unit finance
Alignment Lift £6k to £30k Alignment Lift finance
Brake Tester £8k to £25k Brake Tester finance
Emissions Analyser £3k to £12k Emissions Analyser finance
Engine Crane £300 to £4k Engine Crane finance
Exhaust Extraction £600 to £25k Exhaust Extraction finance
Four Post Lift £3k to £25k Four Post Lift finance
Headlamp Aligner £700 to £4k Headlamp Aligner finance
Nitrogen Generator £2k to £9k Nitrogen Generator finance
Oil Dispensing System £800 to £15k Oil Dispensing System finance
Parts Washer £300 to £6k Parts Washer finance

Browse all equipment finance pages

Understand the loan structures

The table above shows what a garage & motor trade business borrows for. These pages explain how each kind of borrowing actually works, what it costs and who it suits.

Business loans for bad credit Government-backed business loans Merchant cash advance Revolving credit facilities Business loans with no personal guarantee Secured business loans Start up business loans Unsecured business loans

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Guides and resources

How to Get a Business Loan Business Loan Eligibility Secured vs Unsecured Best Business Loans UK iwoca Review Funding Circle Review

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