BHPH Capital & Funding Solutions: Finance Your Dealership Growth in 2026

Find your funding fit

Start here: What's your dealership's stage, and how soon do you need the capital?

• Brand new (under 2 years): You're locked out of SBA 7(a) loans. Explore commercial lines of credit, merchant cash advances, or equipment financing instead.
• Established with a live portfolio (2+ years, 50+ contracts): Portfolio advances and bulk financing are built for you—they tap your payment stream directly.
• Growing, need flexibility: A commercial line of credit lets you draw, repay, and redraw as inventory and collection cycles shift.
• Need capital in 2 weeks or less: Merchant cash advances are the speed play, but they cost more.

Once you've picked your timeline, the guides below walk you through qualification criteria, costs, and the specific traps in each lane.

Key differences

Funding for BHPH dealerships comes in four broad flavors. Here's what splits them:

Product	Speed	Best for	Trade-off
SBA 7(a) Loan	30–45 days	Established dealers, $50K–$5M, term debt	Requires 2 years in business; lower rate but slower
Commercial Line of Credit	2–4 weeks	Ongoing working capital, inventory swing, payroll	Interest only on drawn funds; ties to personal credit
Portfolio Advance	10–15 days	Dealers with 50+ seasoned contracts	Repaid from your collections; higher discount rate (8–15%)
Merchant Cash Advance	5–7 days	Immediate cash, established revenue	Highest cost (40–60% factor rate); shortest payback

Who qualifies and what it costs

SBA 7(a) loans are the cheapest long-term option: rates in the range of Prime + 2.25–2.75%, so roughly 8.5–11% in 2026. You'll need a personal credit score in the mid-600s to 690+, 2 years of tax returns showing profit, and a business plan. Maximum loan: $5 million. The paperwork is heavy, but the rate is worth it if you can wait 30–45 days.

Commercial lines of credit run 7–15% depending on your credit and collateral. You pay interest only on what you draw. A $100K line with $50K drawn means you pay interest only on the $50K. This is ideal for dealers who need flexibility but don't want a massive fixed obligation. Most commercial lenders want a personal credit score of 620+ and 1–2 years of business history.

Portfolio advances cost the most per dollar borrowed—typically a discount rate of 8–15% off the face value of your contracts. If you have $100K in live contracts and sell at 10% discount, you get $90K and repay $100K from your collections. This is expensive, but there's no monthly payment if collections slow. It's built for dealers with proven portfolios.

Merchant cash advances are the speed option, but factor rates of 1.25–1.60 mean you repay $125–$160 for every $100 borrowed. They're repaid via a daily or weekly hold on your credit card or bank account, so they tie up cash flow faster. Use them only when you absolutely need capital in a week and have strong card volume.

What trips up BHPH dealers

Most BHPH dealers underestimate how much documentation they'll need. SBA lenders want 2 years of personal and business tax returns, 3 months of bank statements, profit-and-loss statements, a detailed business plan, and proof of your dealer license. Don't wait until you apply to gather it.

Second trap: confusing a line of credit with a loan. A $50K line of credit is not $50K in your pocket—it's $50K you can borrow on demand. You only pay interest on what you use. Many dealers draw the full amount on day one and carry the interest cost unnecessarily.

Third: portfolio advances tie your cash directly to collections. If your skip rate spikes or GPS recovery costs rise, your repayment obligation doesn't shrink. Run worst-case collection scenarios before committing.

Fourth: merchant cash advances feel like "free money" until the daily hold starts. A $30K advance with a 1.4x factor repays $42K via daily $500 hits. If your card volume dips, those holds pile up and can squeeze you. Only use this if your daily card revenue is consistent and substantial.

Next steps

Pick the guide that matches your situation above. Each one unpacks qualification checklists, real cost comparisons, and red flags specific to that funding type. If you're unsure whether your portfolio is seasoned enough for an advance, or whether your credit qualifies for an SBA line, those guides will tell you what to expect and what to fix first.