Working capital, equipment financing, and business lines of credit built for independent and multi-bay tire shops. Fund inventory, purchase tire changers and alignment systems, manage seasonal cash flow, and grow your service menu.
Tire shops are cash-intensive businesses with two primary financing needs: inventory capital (stocking the right tires before customers need them) and equipment capital (tire changers, balancers, alignment machines, and TPMS tools). On top of those, seasonal cash flow swings — especially in northern markets — create working capital gaps that a revolving line of credit solves efficiently. Merchant Fund Express offers working capital loans, lines of credit, equipment financing, MCAs, and revenue-based financing for tire shop owners. Funding from $10,000 to $2,000,000. Application in 10 minutes, decision in 24 hours, no tax returns required.
The tire business operates on thin margins per unit — a tire sold for $150 might carry $40–$60 of gross profit before labor and overhead. Revenue comes from volume, from upsells (alignments, TPMS service, nitrogen), and from service labor attached to tire installations. To maintain volume, a shop must carry inventory across dozens of SKUs and sizes. That inventory investment is always ahead of the revenue it generates.
A well-stocked independent tire shop carries 200–400 tire SKUs at any given time. At an average cost of $80–$200 per tire for passenger and light truck applications, a shop stocking 300 units has $24,000–$60,000 tied up in inventory. Performance and specialty shops can carry $100,000–$200,000+ in tire inventory. Consumer demand for specific brands (Michelin, Continental, Bridgestone) and sizes means you can't substitute — if you don't have it, the customer goes elsewhere.
A working capital loan or revolving line of credit allows you to stock fully for peak season, expand SKU coverage, and respond to manufacturer promotions (buy-in deals) that require upfront cash but generate strong margins.
Modern tire service requires more than a basic changer. Here's a realistic equipment breakdown:
A full equipment build-out for a new bay runs $25,000–$75,000. Equipment financing spreads that cost across 12–60 months, with the equipment itself as collateral.
Northern tire shops experience extreme seasonality. In markets like Minnesota, Michigan, Wisconsin, and New York, snow tire season (October–December) and spring changeover (March–April) can represent 60–70% of annual revenue. The remaining 7 months, the same shop must maintain full staff, overhead, and inventory — on much lower revenue.
A business line of credit solves this: draw during the off-season to cover fixed costs, repay during peak season when cash flows in. This eliminates the need to reduce staff or cut marketing during slow periods — both of which damage long-term revenue.
The most successful independent tire shops generate 40–60% of revenue from services attached to tire work: alignments, brake service, oil changes, suspension, and TPMS repair. Adding these services requires both equipment investment and working capital for parts inventory.
An alignment machine ($8,000–$40,000) pays for itself quickly in a busy shop. At $79–$149 per alignment and 5–10 alignments per day, a shop doing $600/day in alignment revenue recovers a $20,000 equipment investment in 33 days of operation. Equipment financing makes this ROI case even stronger by spreading the cost over time.
Adding brake service requires brake lathe equipment ($3,000–$8,000), a parts inventory of common brake pads and rotors ($5,000–$15,000), and the labor capacity to handle the work. Working capital financing covers both the parts inventory build and equipment needed for this service expansion.
Tire shops face heavy competition from national chains (Discount Tire, Mavis, NTB, Firestone). Independent shops that invest consistently in Google Ads, local SEO, and reputation management consistently outperform those that rely on walk-in traffic. A working capital loan can fund a 6-month digital marketing campaign that generates measurable long-term revenue.
Lump-sum funding for inventory purchases, seasonal stocking, marketing campaigns, or facility improvements. Fixed terms from 3–24 months.
Learn More →Revolving credit for seasonal cash flow management. Draw when needed, repay as revenue comes in, draw again. Pay interest only on the balance used.
Learn More →Finance tire changers, balancers, alignment systems, and TPMS tools over 12–60 months. Equipment serves as collateral — no blanket business lien required in most cases.
Learn More →Advance against future revenue repaid as a percentage of daily sales. Repayment naturally slows during your slow season, making it well-suited for tire shop seasonality.
Learn More →Fixed daily ACH payments based on your monthly revenue. Predictable repayment structure — useful for shops that need budgetary certainty.
Learn More →If your shop services fleet accounts (delivery companies, municipalities), convert outstanding invoices into same-day cash rather than waiting 30–60 days for payment.
Learn More →Tire shops can access working capital loans, business lines of credit, equipment financing, merchant cash advances, and revenue-based financing. Equipment financing works well for tire changers, balancers, and alignment systems. Working capital and lines of credit are ideal for inventory purchasing and seasonal cash flow management.
A mid-size independent tire shop typically carries $40,000–$120,000 in tire inventory at any given time. High-volume shops or those stocking premium brands may carry $200,000+ in inventory. Working capital financing allows shops to stock adequately for peak season without depleting cash reserves needed for payroll and overhead.
Yes. Equipment financing is well-suited for tire service equipment including tire changers ($3,000–$15,000), wheel balancers ($3,500–$12,000), alignment machines ($8,000–$40,000), and nitrogen inflation systems ($2,000–$6,000). The equipment typically serves as collateral, with repayment terms up to 60 months.
Most programs require a minimum of 6 months in business with documented monthly revenue. Startups under 6 months may have limited options. If your shop has been operating for at least 6 months with consistent bank deposits, you are likely eligible for at least one of our financing products.
Tire sales spike during spring and fall in northern markets. A revolving business line of credit allows you to stock heavily before the season, then repay as sales come in — rather than missing sales due to insufficient inventory.
Most programs at Merchant Fund Express require at least $10,000 in monthly gross revenue, with larger funding amounts available to shops generating $25,000 or more per month. Revenue is verified through 3 months of business bank statements.
Yes. Working capital loans and lines of credit can be used for any business purpose including digital advertising, Google Business Profile optimization, local SEO services, direct mail campaigns, and loyalty program setup.
After a complete application and supporting documents are submitted, most tire shop owners receive a funding decision within 24 hours. Upon approval and contract signing, funds are typically deposited in 1–2 business days.
Working capital, equipment loans, and credit lines built for independent tire dealers. Decisions in 24 hours.
Apply Now — It's Free (305) 384-8391Reviewed by MFE Funding Team | Updated March 2026
| Product Type | Funding Range | Timeline | Key Requirements |
|---|---|---|---|
| Working Capital | K - 0K | 24-48 hours | 6 months in business, K+/month revenue |
| Merchant Cash Advance | K - 0K | 24-72 hours | 3 months in business, K+/month revenue |
| Line of Credit | K - 0K | 48-72 hours | 1 year in business, K+/month revenue |
| Equipment Financing | K - 0K | 3-5 days | 6 months in business, equipment purchase |
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