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. Our eligibility check uses a soft search — no impact on your credit score.

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.

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