Tire Distributor Expansion
Case Overview
Reason: Business Acquisition
Funding Amount: $500,000
Approval: $500,000
Industry: Tire Distributor
Use of Funds: Business Acquisition & Expansion
Program Type: Working Capital
The Story
Ivan Ortega joins us to talk about a tire distributor he helped secure $500,000 for each of his businesses in order for the client to purchase his local competition. Ivan discusses how he was able to position both businesses so the client was able to secure 22% more money than they were originally looking for.
The Details
The Client
The client operates in the distribution and manufacturing industry and is based in South Florida.
He owns two separate entities: one for manufacturing and one for distribution.
His business was in growth mode, actively looking to acquire nearby competitors.
The Situation
The client needed funding to acquire two to three competing businesses in his area, expanding his client pool and operations.
He wanted to take over competitors’ shops, supply chains (such as tire suppliers), maintenance, and labor services.
His main concern was securing capital at the lowest possible cost.
A challenge arose because he had filed an extension on his 2023 tax return, making it difficult to meet underwriting requirements for traditional financing.
The Solution
Capital Infusion leveraged partner relationships to accept alternative documentation in lieu of the delayed tax returns.
This approach enabled the client to still qualify for premium lending programs despite the tax return extension.
Both of the client’s entities were strategically positioned to secure $500,000 each, totaling $1 million in available funding.
This exceeded his funding need by 22%, allowing him to comfortably move forward with the acquisitions.
The success of the funding built a strong ongoing relationship, with the client referring multiple new clients and maintaining quarterly communication to align on future business expansion plans.