What happens when your business invests heavily in growth but cash flow cannot keep up? For a tire company in Honolulu, Oahu, Hawaii, this became a pressing issue. After installing new equipment and waiting on contracts to pay out, cash reserves dropped quickly. At the same time, they were also waiting on Employee Retention Tax Credit funding, which added further delays.
Instead of slowing operations, the company pursued a working capital solution. Within 15 days, they secured $200,000 in funding. This case study outlines how the process worked and what other businesses can learn from it.
The Challenge: Cash Flow Strain During Growth
The tire company was actively expanding. They invested in new equipment to increase capacity and improve service. However, these upgrades required significant upfront capital.
At the same time, revenue was delayed due to:
- Contracts that had not yet paid out
- Pending Employee Retention Tax Credit funding
- Ongoing operational expenses
As a result, the company faced a cash flow gap. Even though the business was growing, available cash was limited. Without additional funding, this could have slowed progress and impacted daily operations.
The Solution: $200K in Working Capital
To maintain momentum, the company pursued working capital funding. This solution provided access to immediate cash without waiting for delayed income sources.
They were approved for $200,000. These funds allowed them to:
- Support operations during delayed contract payments
- Offset costs from recent equipment investments
- Maintain inventory and service capacity
- Continue business growth without interruption
Most importantly, the funding provided stability while waiting for larger payouts to arrive.
The Process: Funding Completed in 15 Days
Although the situation required urgency, the process remained structured and efficient.
Tuesday (11/21)
The client submitted the initial application to begin the process.
Tuesday (11/28)
The full package was submitted to the credit team for review.
Thursday (11/30)
Approval was received, and final documents were sent to the client.
Friday (12/1)
The client signed all final documents to move forward.
Tuesday (12/5)
Funds were deposited directly into the company’s bank account.
In total, the process took 15 days from application to funding.
The Results: Stability and Continued Growth
With $200,000 in working capital, the tire company regained financial flexibility. Instead of pausing operations, they continued to move forward with confidence.
Key outcomes included:
- No disruption to daily operations
- Continued progress on growth initiatives
- Ability to manage expenses during delayed payments
- Improved financial stability
As a result, the business remained positioned for long-term success while waiting for incoming funds.
Key Takeaways for Growing Businesses
This case highlights important lessons for businesses experiencing rapid growth:
- Growth often requires upfront investment before revenue is received
- Delayed payments can create temporary cash flow challenges
- Access to working capital can bridge financial gaps
- Acting quickly helps maintain business momentum
Companies that plan for these scenarios can avoid unnecessary slowdowns.
Conclusion
Cash flow challenges can arise even during periods of growth. In this case, a tire company overcame financial strain by securing $200,000 in working capital in 15 days.
By using a structured and efficient funding process, they maintained operations, supported expansion, and avoided disruption. For businesses facing similar situations, fast access to capital can provide the stability needed to keep moving forward.