The Pinch Points
Why Transmission Shop Owners Come to Us Instead of Their Bank
A transmission shop is a manufacturing operation hiding inside a repair shop — you're not just fixing units, you're building them, with real equipment and real inventory tied up in cores and rebuilt stock. These are the spots where we get called.
The Core & Rebuilt-Unit Inventory
Stocking rebuilt units and the cores to build them ties up $30K–$120K — expensive inventory that turns slower than a general shop's parts.
The Rebuild Tooling & Dyno
A transmission dyno, rebuild benches, and specialty tooling run $40K–$90K — the equipment that lets you rebuild in-house instead of subletting the margin.
The Warranty Reserve
Rebuilds carry warranties; a comeback ties up a bay and parts on a job you've already been paid for, a cost a growing shop has to be able to absorb.
The Diagnostic Investment
Modern transmissions are software as much as gears — scan tools and programming equipment run $15K–$40K to diagnose and service late-model units.
The Fleet & Dealer AR
Wholesale work for dealers and fleets pays net-30; a shop with that business carries $20K–$50K in receivables on units already delivered.
Adding a Location or Buying a Shop
A second location or acquiring a transmission shop is a $250K–$1M move — equipment, core inventory, and working capital.
What an operator said
“We were subletting rebuilds because we didn't have the dyno or the tooling to do them in-house — giving away the best margin in the shop. Financing the equipment changed that overnight; now the rebuilds stay here and the §179 helped at tax time.”
T. Boswell · transmission specialist · Phoenix, AZ
Start Here
See Your Range in 60 Seconds
No credit check, no documents to start, and an estimated funding range on the spot. No one contacts you until you’re ready to move forward.
What Happens When You Start
Estimate Your Capital Range
Slide to your annual gross revenue. We size capital off your top line — not your credit score.
Estimated Capital Range
A conservative range based on 10-15% of annual revenue — many businesses qualify for more with strong receivables or assets behind them. Lenders return real term sheets once they see your file.
60 seconds · No obligation · Estimate only
Built for the Trade
What We Fund for Transmission Shops
Equipment Financing With §179
Finance the dyno, rebuild tooling, and diagnostics — the dyno and tooling are the collateral, and §179 writes the gear off in year one.
Working Capital for Cores & Parts
An unsecured, revenue-based working line funds the core and rebuilt-unit inventory so you can build in-house without the parts float draining cash.
A Line Against Dealer & Fleet AR
A working line advances against net-30 wholesale and fleet receivables.
Revenue-Based Expansion & Acquisition Capital
Add a location or acquire a shop on revenue-based, capital-stacked financing — equipment and core inventory in one structure, not an SBA queue.
Match Your Situation
The Cash-Flow Gaps We Fund for Transmission Shops
Match your situation to the structure. Every one of these funds on the shop's revenue, not a perfect credit file.
| What It Looks Like | Funding Solution | Amount | Speed | |
|---|---|---|---|---|
| Core & rebuilt-unit inventory | Cores and rebuilt stock that turn slower than general parts | Working Capital | $75K–$200K | 1–3 days |
| Dyno & rebuild tooling | Dyno, benches, and specialty tooling to rebuild in-house | Equipment Financing | $75K–$150K | 3–5 days |
| Diagnostic & programming | Scan tools and programming for late-model units | Equipment Financing | $75K–$150K | 3–5 days |
| Dealer & fleet AR | Net-30 wholesale receivables on units already delivered | Invoice Factoring | $75K–$300K | 1–2 days |
| Second location | Equipment, core inventory, and working capital for expansion | Business LOC | $250K–$1M | 1–5 days |
The Products
How Transmission Shop Financing Is Structured
Most transmission files fund between $75K and $5M+, structured around the dyno and the cores. Larger lines available when revenue, cash flow, and story qualify.
| Amount | Term | Best For | Funding Speed | Typical Structure | |
|---|---|---|---|---|---|
| Equipment Financing | $75K–$5M+ | 3yr–7yr | Dyno, rebuild benches, diagnostics | 3–7 days | Equipment serves as collateral |
| Working Capital | $75K–$5M+ | 6mo–10yr | Core inventory float, payroll | 1–3 days | Often unsecured, revenue-based |
| Business LOC | $75K–$5M+ | Revolving | Ongoing core and parts draws | 1–5 days | Unsecured line, no PG by default |
| Invoice Factoring | $75K–$5M+ | Per invoice | Net-30 wholesale and fleet receivables | 1–2 days | Invoices secure the line, no PG typically |
Tax Strategy
Section 179 on a Dyno & Tooling — Worked
If last year was strong and you’re about to write a check to the IRS — stop. Acquire qualifying equipment with as little as 10% down, finance the rest, and write off the full purchase price in year one. Section 179 covers it up to the annual cap; 100% bonus depreciation — made permanent in 2025, with no cap and no income limit — carries the rest.
At the top bracket, that first-year deduction can return meaningful tax savings — and for an established business with strong cash flow, it’s the difference between writing a check to the IRS and putting the same money into your own equipment. Your CPA models the exact numbers for your bracket and structure.
Worked scenario · top bracket · illustrative
You financed the machine and put down a fraction of its price — but you deduct the full price in year one. The write-off is bigger than your down payment, and the equipment keeps working the whole time.
Scales with your numbers
Illustrative only. Actual savings depend on your tax bracket, entity type, state conformity, and CPA guidance. Section 179 and bonus depreciation are elections your CPA makes for your situation; above the Section 179 cap, 100% bonus depreciation carries the balance.
Terms reflect credit, revenue, time in business, and each lender. Every file is unique — see what the desk structures for yours in the 60-second qualifier.
Bobby’s Take
“A transmission shop is a manufacturing operation hiding inside a repair shop — you're not just fixing units, you're building them, which means real equipment and real inventory tied up in cores and rebuilt stock most banks don't understand how to value. The shops that grow are the ones who can build in-house at volume instead of subletting the profitable work. We fund the dyno and the tooling and the core inventory together, on the shop's revenue — and §179 on the equipment hands back roughly $38,850 on a $105K package. Build in-house and keep the margin — the bank never learned how to value a core on your shelf, but your customers know exactly what an in-house rebuild is worth.”
Bobby Friel · Founder · 20+ years in banking and finance
How It Works
From Application to Funded
One application, 70+ lenders competing, a dedicated specialist, and most files funded in days.
60-second estimate
Enter your numbers — no credit check, no documents. You see an estimated funding range on the spot.
A specialist is assigned
A real funding specialist — not an algorithm — reviews your file, usually within 24 hours.
70+ lenders compete
Your application goes to the marketplace. Competing offers typically land 24–48 hours later.
You pick the offer
Compare structures and terms with your advisor. No obligation until you choose to sign.
Funded in days
From same-day working capital to a multi-piece stack, most files fund in days — not the bank’s 60–90.
Underwriting
What Underwriting Looks At
Funding here leads with what your business actually does — your revenue and cash flow. The specialist desk reads the real picture from your statements, then matches it to the lenders most likely to fund it.
How you’re evaluated
Revenue-first
sized off your top line, not just your balance sheet.
Cash-flow driven
your bank statements show how the business really runs.
Bank-statement underwriting
even a down year is read off 4 months of statements.
Story-driven
a big new contract, a seasonal swing, a turnaround in progress: context the raw numbers miss counts too.
What to have ready
↳Had a loss year? It’s read off the bank statements — 4 months, not 6.
Start fast, finish complete
The operators who fund quickest come to the specialist review with these ready — but you don’t need all of it to start. Your signed application and bank statements are what unblock the review; the rest can follow as trailing docs. Real term sheets come once the lenders can see a true business overview, so the move is simple: get the application and statements in right away, and don’t let a missing tax return hold up your term sheets.
Credit, straight
Qualification
Who Gets Funded — and Who’s Not Ready Yet
A straight read saves everyone time — here’s the line between a transmission file that funds and one that isn’t ready yet.
↳Time in business is a factor, not a gate — newer crews with strong revenue still qualify.
Not ready yet isn’t a no — it’s a checklist. Most of it is fixable in a quarter or two, and your advisor will tell you straight which gaps to fix before a file goes in.
The Operator's Guide
Transmission Repair Shop Financing
A Manufacturing Shop in Disguise
A transmission shop carries more capital than its footprint suggests. On the equipment side there's a dyno, flush machines, and rebuild tooling — the gear that lets you build units in-house instead of subletting the most profitable work in the shop. On the inventory side there's an expensive stock of rebuilt units, cores, and hard parts that turns slower than a general shop's parts. Most banks don't know how to value cores on a shelf, so they pass.
One Application, 70+ Lenders
We fund transmission shops on the shop's revenue — equipment financing on the dyno and tooling with §179 on the gear, a working line for the cores and rebuilt-unit inventory, and a line against net-30 dealer and fleet AR. One application, 70+ lenders, soft-pull review. Build in-house, keep the margin, and let the lenders compete for your business.
Common Questions
Transmission Financing — Questions, Answered
Yes — equipment financing covers the dyno, benches, and tooling; §179 writes it off the year it's in service.
Yes — an unsecured, revenue-based line funds the core inventory float.
Yes — a working line advances against net-30 wholesale and fleet AR.
Signed application, four months bank statements, P&L, balance sheet, two years returns; losses → four months statements. Soft credit pull only — zero FICO impact to see your range.
Yes — equipment and core inventory stacked revenue-based, not an SBA 7(a) loan.
