3 min read
The working-capital challenge in mobile tyre fitting
Mobile tyre fitting is a cash-hungry business to run at volume. Unlike a fixed garage, a mobile operation must carry stock across multiple vans covering a wide area — because when a customer calls for a same-day replacement, there is no time to order in. That means holding a meaningful range of sizes on each vehicle, which quickly adds up to tens of thousands of pounds of rubber sitting in van racking before a single fitting fee lands in the bank.
Tyre distributors extend trade credit, but terms are typically 30 days, and the pressure to maintain stock across multiple vehicles and multiple size ranges can push a growing operation well beyond comfortable limits. Add in the cost of fitting equipment — tyre changers, balancers, nitrogen inflators, TPMS tools — and the cash commitment to run a professional mobile outfit is considerable from day one.
Contract accounts: growth that requires upfront investment
Winning a fleet account — a haulier, a taxi firm, a local authority vehicle pool, a car dealership's courtesy-car fleet — is the goal many mobile tyre operators work toward. Contract accounts provide reliable recurring revenue, but they almost always require a step-change in capacity before the first invoice is raised. A fleet manager will want confirmation that the operator can service multiple vehicles in a short window, cover a range of tyre sizes promptly, and handle out-of-hours call-outs.
That means carrying a wider stock, potentially adding a van, and being able to absorb the lag between completing the work and receiving payment on 30- or 60-day terms. A working-capital facility bridges exactly that gap — funded inventory and capacity on the front end, repaid as the contract invoices are settled.
What to look at before committing to a facility
Before borrowing, model your stock turn. Tyres that move quickly — popular sizes for common vehicles — generate the revenue to service the facility; slow-moving or niche sizes sit on the van and earn nothing. A facility sized to your realistic monthly fitting volume is more useful than one that covers every possible size you might ever need.
Check the total repayable amount, any fees, and the repayment schedule against your actual invoice cycle. If you invoice fleet accounts monthly on 30-day terms, a facility that repays weekly may not fit your cash flow as well as one aligned to your settlement dates. This is general information — your accountant can help model the numbers against your own figures.
Company lending with no personal guarantee
Credicorp lends to the limited company, not to directors personally. No personal guarantee is required; the facility sits on the business. For a mobile tyre fitting company, this means stock purchases, van fit-outs or capacity-building ahead of a contract account can be funded through the company balance sheet without pledging the director's home or personal assets.
You can apply online and receive indicative terms. The assessment focuses on how the company trades rather than the director's personal financial position.
Frequently asked questions
Can I borrow to fund a tyre stock float across multiple vans?
Yes — stocking mobile vans is a standard use of a working-capital facility. The amount will reflect the company's turnover and trading history; the facility sits on the limited company with no personal guarantee.
We have just won a fleet contract. Can we borrow to gear up before it starts?
A confirmed contract is a strong basis for a working-capital draw. The facility can cover the additional stock and capacity needed before the first invoices are raised, with repayment timed to your settlement cycle.
Does the company need to be VAT-registered?
VAT registration is not a specific requirement, but a company with a trading history sufficient to have crossed the VAT threshold typically has more verifiable revenue data, which helps with the assessment. Speak to an accountant about your specific position.
Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.