Small Business Case Study: BC Based Flooring Company

Background

A Decades-Old Flooring Business Adapting to a Changing Market

This BC-based flooring and renovation company has been in business for over 60 years. Serving both residential customers and contractors, the business handles all aspects of interior flooring and renovation work while also supplying products directly to other trade professionals. For most of its history, the company operated entirely on its own cash flow, without relying on outside financing.

As market conditions shifted and competition increased, the business began exploring strategic ways to leverage financing to stay ahead and protect its margins.

Challenge

Seizing Time -Sensitive Supplier Discounts Without Straining Operations

Each year, suppliers offer container-level pricing deals with discounts of up to 35 to 40 percent off regular wholesale costs. These deals require fast access to capital and represent a significant competitive advantage for businesses that can act on them quickly.

The business already used a bank line of credit for day-to-day operations and project cash flow, but preferred to keep that capacity available for ongoing work. What was needed was a separate, flexible financing source specifically for these high-return inventory opportunities.

Solution

Fast Financing for High-Margin Inventory Purchases

Merchant Growth provided fast, flexible financing designed to support special inventory purchases outside of the business’s regular cash flow cycle. The process was smooth and straightforward, allowing the business to move quickly when supplier deals became available.

Rather than tying up existing credit facilities, the business now uses Merchant Growth specifically for bulk inventory deals, while keeping its bank line of credit available for project-based operational needs. This approach has become a deliberate part of how the business manages its finances.

Result

Strong Margins, Fast Inventory Turnover, and a Smarter Financing Strategy

With financing in place, the BC Flooring Company:

• Secured a bulk inventory purchase at a 40% discount, generating significant margin on every unit sold
• Turned over the financed inventory in approximately seven months
• Preserved its bank line of credit for day-to-day project operations
• Established a repeat financing strategy for future supplier deals

For more information, visit Merchant Growth.