CFACommercial Funding Advisory
Automotive & Equipment business

Automotive & Equipment

Business Funding for Tire Shops

Tire shops require a heavy upfront investment in inventory. A single set of tires takes up space and ties up $400 to $2,000 in capital, and you need hundreds of sets to serve walk-in customers without delays. Tire changers, balancers, and alignment machines are the other major expense. The business model works on volume and speed, so anything that slows down your bays or leaves customers waiting costs you money.

Common Uses

What Tire Shops Use Funding For

  • Stock tire inventory across passenger, light truck, commercial, and specialty sizes
  • Purchase tire changers, wheel balancers, and four-wheel alignment systems
  • Add TPMS programming tools and nitrogen inflation systems
  • Expand the shop to add more service bays and a dedicated alignment rack

Funding Options

Best Funding Types for Tire Shops

Inventory Financing

Borrow against your tire inventory to maintain deep stock without draining cash. Tires are a commodity with a clear wholesale value, making them straightforward collateral. Restock popular sizes and clear slow movers without cash flow strain.

Equipment Financing

Finance Hunter, Coats, or Ranger equipment for tire changing, balancing, and alignment. This equipment is standardized across the industry and has well-established resale values.

Merchant Cash Advance

Tire shops process heavy card volume from retail customers, making MCAs easy to qualify for. Use one for a quick inventory restocking or equipment upgrade when you need to move fast.

What Lenders Look For

Qualification Notes for Tire Shops

Lenders want to see inventory turnover rates because slow-moving tire stock ties up capital and takes up warehouse space
Franchise tire dealers (Discount Tire, Big O) have access to franchisor financing programs in addition to standard options
Shops that offer alignment, brakes, and oil changes alongside tires show higher per-customer revenue and better loan qualification

Ready to Explore Funding for Your Tire Shop Business?

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