According to 365 finance, there has been a 47 per cent increase in garages and MOT centres seeking flexible finance in the past year.
Despite the current mild economic recession, automotive workshops and MOT test centres continue to be busy throughout the UK. Part of the reason for this is the trend that has occurred post-pandemic, of drivers tending to hold on to cars for longer, meaning that slightly older and aging cars are needing to be serviced, repaired and put through an MOT. While local MOT centres might be getting booked up further in advance now regarding MOT tests, the cost-of-living crisis that is hitting everyone and in particular small businesses up and down the country is, of course, also impacting independent garages.
Flexible finance explained
The day-to-day costs of running a business premises have continued to increase in the opening months of 2024, meaning some workshops have been seeking alternative finance to assist them with cash flow management, the purchasing of extra stock and equipment, along with workshop renovation. London-based 365 finance, which offers revenue-based finance to SMEs across the UK, has just reported a 47 per cent yearon- year increase in garages and MOT test centres opting for flexible funding.
According to the latest data from the funder, the five biggest growth sectors over the last 12 months – showing the largest rises in demand for funding – include online businesses, hotels, medical and professional services, hair and beauty salons and in fifth place, garages and MOT test centres.
Managing director at 365 finance, Andrew Raphaely, said: “The increase in garages and MOT centres applying for alternative finance is down to numerous factors, including the ongoing higher costs associated with running any business, but also the need to periodically purchase new equipment and stock, along with maintaining and updating premises.
“SMEs in general now have a much greater awareness of what revenue-based finance is, and what all of the benefits are, including the fact that it’s only paid back when customers pay them. Flexible finance, and more importantly, responsible lending is ultimately what we stand for.”
365 finance’s flexible funding is designed as a quick way for any business that accepts credit and/or debit cards to raise capital. This type of finance is a fast alternative to a bank loan or overdraft and has helped SMEs across the UK to grow.”
