Industry

Tire shops funding in Canada: what funders actually read.

The deposit patterns, seasonality and timing that decide how funders read a file from a Canadian business in tire shops.

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How can a Canadian tire shop get funding?

Short answer: Tire shops live on two changeover seasons, October to December and March to May, with winter tire inventory bought before demand arrives. Funders read changeover peaks, inventory purchases, storage fees and service revenue. Pre-season inventory, machines and storage space are the common uses, repaid during the rush.

Key facts

Two peaks: fall and spring changeovers
Winter tires are bought before demand
Storage fees add recurring revenue
Midsummer and January are quiet

How funders read tire shops files

Tire shops in Canada live on two changeover seasons, with inventory and storage driving cash needs.

Spring and fall changeover peaks
Inventory purchases
Tire storage fees
Service revenue

The cash-flow rhythm

October to December and March to May are peaks; midsummer and January are quieter.

Where the pressure usually shows up

Winter tire inventory bought before demand
Storage space
Labour for peaks

What the money usually does

Seasonal inventory
Equipment
Storage expansion
Seasonal staff

Revenue-based financing matches seasonal peaks; a short advance fits inventory.

A worked example

Illustrative arithmetic

An independent tire and wheel shop depositing about $85,000 a month asks for $30,000 for winter tire inventory and a second balancing machine. At a 1.22 factor the payback is $36,600, a cost of $6,600. Over roughly 6 months that is about $290 per business day, or close to 7% of monthly deposits.

Total payback: $30,000 × 1.22 = $36,600.
Cost: $6,600.
Payment: about $290 per business day, or 7% of monthly deposits.

Every figure on this page is illustrative arithmetic in Canadian dollars. It is not an offer, a quote or a promise of approval.

Before you apply

Show both changeover seasons
Have supplier terms
Note storage income

Typical starting points

Monthly revenueTypically from around $20,000 a month in deposits for Canadian files. The exact line varies by funder and by file.

Time in businessTypically about 12 months. Newer businesses can be reviewed, but the options narrow.

Account healthLimited low-balance or negative days. Funders read the last few months of bank statements for this.

CreditScores from 500 are considered. A score of 600 or higher opens more options and better offers.

DocumentsA signed application and recent business bank statements, typically the last four months.

Existing advancesFiles with an existing advance can be reviewed, including second position.

A typical month, read the way a funder reads it

A tire shop's year has two surges: fall changeovers and spring swaps. Inventory arrives before the rush. A reviewer reads both peaks.

Canadian context

Quebec requires winter tires during the winter period, and British Columbia requires winter-rated tires on many highways for part of the year, which drives predictable demand.

Questions a reviewer may ask

How much do you spend on fall inventory?
How many sets do you store?
What share of revenue falls in the two peaks?

Whatever the trade, the review is built on the business's own bank statements: how much arrives, how steadily, what is left after fixed costs and how the account is managed through a slower stretch. A short note that names your busiest and quietest months, any one-off deposits and what the money is for usually answers the follow-up questions before they are asked.

Sources and review

Reviewed by the Merchant Fund Express team on October 12, 2026. Official pages checked as of that date.

Common questions

Is seasonality normal?

Yes, read across twelve months.

Can I fund winter inventory?

Yes, ahead of the fall season.

Do storage fees help?

They add recurring revenue.