If you are someone who enjoys working on cars and you have some qualifications in the area, then you might have thought about setting up your own garage.
Having a garage is not only a great way to work on your passion and something that you enjoy, but it also a chance to earn some good money whilst you do it.
Another great thing about setting a garage is the fact that there is always plenty of work available for you to do. There are not really any quiet periods, someone will always need your help with their car.
Whilst setting up a garage is a great business idea; it can be costly. In fact, it is thought that you can expect your start-up costs for a garage (especially if you want to purchase your equipment) to be in the region of £50,000.
Even if you hire or lease some of the bigger pieces of machinery, you are still looking at costs of around £20,000.
With this in mind, you will be happy to know that there are plenty of finance opportunities out there for you to explore and apply for.
Cash lump sum
You may be lucky enough to have most of the equipment that you are going to need in order to set up your garage. However, you still might need to cover any start-up costs as well as buy some other pieces of equipment that you need to get off the ground.
If this is true for you then you are going to want to consider your start-up finance options. This often comes in the form of unsecured or secured credit, which will then cover those costs.
The amount that you can borrow as a cash lump sum will depend on the lender that you choose and your credit score too. Some lenders will offer up to £25,000 unsecured and up to £1,000,000 secured.
In order to apply for this particular type of finance, you will need to make sure that you put together a good quality business plan, which will show how you intend to spend the money.
Hiring or leasing equipment
If you don’t have the equipment that you need in order to set things up, or you want to use any start-up finance that you receive on the bare bones of your business. Then you might want to think about hiring the main pieces of equipment for your garage to work.
Many people decide to take on a lease for equipment such as hydraulic car ramps, rolling roads, computer systems and diagnostic machines. All of which are necessary, but that can be hugely expensive if you buy them out-right.
There are two main types of lease that you can take out a finance lease and a hire purchase.
A finance lease will protect the future value of whatever it is that you are hiring. You will only pay a monthly amount that fits outside this future value. At the end of the lease term, you will give back the equipment whereby it will be sold. If it sells for more than you have paid, then you will receive the difference.
A hire purchase is a simple purchase and hire back agreement. The lender will buy the equipment that you need and is then the owner.
They will then hire it back to you for a set term. You repay the purchase price of the equipment, plus any fees that apply and when the term comes to an end, you own the equipment.
As you can see, there are plenty of ways to raise funds or be able to buy the equipment that you need to make your business a success.
Are you looking for Garage Finance options?
Check out the finance options that are open to you through The Funding Store to see what you can raise to get yourself off the ground.
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This article has been produced by The Funding Store for general interest. No responsibility for loss occasioned to any person acting or refraining from action as a result of the information contained in this article is accepted by The Funding Store (MK) Limited. In all cases appropriate professional advice should be sought before making a decision.