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How one small business owner turned working capital into professional and personal success

Meet Ramon Mora, owner of Ramon’s Commercial Tire. Born and raised in San Jose, Ramon has seen it grow from a city with one Woolworths store to a metropolitan area with five major malls. He’s seen the expansion of the San Jose International Airport and the Bay Area Rapid Transit system (BART).

But if you ask him, the most important expansion in San Jose has been the opening and growth of his own business.

Ramon opened Ramon’s Commercial Tire in 1994. Today, this 25-year-old, family-owned operation provides quality tires to companies in trucking and transportation, recycling, landscaping, roofing and vehicle rental services.

Business was always steady, but real growth began in 2014 when Ramon was introduced to our working capital programs as he was purchasing a Ryder truck. He reached out to the financing team at CIT, and together they completed his first loan application. It was the birth of a strong partnership.

Since 2014, Ramon’s Commercial Tire has completed 17 loans with CIT and Ramon’s annual revenue has grown from $500,000 to $1.1 million!

Professional Empowerment = Personal Victories

Once Ramon started tapping into the power of CIT’s working capital loans, business really took off. Here’s how he used those funds to grow his small business:

  • Payroll and employment taxes – Ramon’s went from one employee to three
  • Strategic purchases – with sufficient working capital, Ramon’s can buy tires by the truckload. This translates to a larger inventory and more competitive pricing 
  • Cash flow management – Ramon’s is an account-based business, which affords clients payment terms. While it helps clients, it means that Ramon’s must wait 30 to 60 days for payment. “Although $120,000 in receivables looks good on my books, it looks better in my bank account,” quips Ramon.
  • Niche offerings – two key purchases have helped differentiate Ramon’s from its competitors:
    • A computerized mobile alignment unit – this $45,000 machine “has paid for itself three times over” according to Ramon. It enables the shop to provide onsite alignment, charging from $250 for trucks to $1,200 for cranes
    • An aluminum wheel polisher – since its purchase in 2017 and with the nearest machine like it over 150 miles away, it has generated around $20,000 per year in revenue

But what doesn’t show up on the balance sheet is how this working capital helped Ramon on a much more personal level. A thriving business enabled him to: 

  • Help care for aging parents 
  • Finance college education –including master’s degrees—for his two sons.

Staying Nimble into the Future

Ramon remains a huge fan of CIT’s working capital programs. He’ll be taking advantage of his solid relationship with us to secure his professional and personal goals well into the future. We couldn’t be prouder to help such a deserving and hard-working business owner.

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