Small Business Case Study: Patton Motorcars 

Background

Revving Up Cash Flow

Patton Motorcars is a used car dealership and detailing service based in Kelowna, British Columbia. Known for delivering quality, reconditioned vehicles, Patton Motorcars has built a reputation for high standards and comprehensive detailing services. Despite this success, they’ve faced challenges in maintaining steady cash flow to cover operational costs due to inconsistent funding options from their primary financial institution.

Challenge

Financial Roadblocks

Patton Motorcars originally received a Canadian Emergency Business Account (CEBA) loan to support their business during the pandemic. However, their bank was unable to offer further assistance or support renewal when the time came, declining their application for additional credit. This left Patton Motorcars facing out-of-pocket expenses to manage towing, repairs, and parts for incoming vehicles – essential for their day-to-day operations. Without sufficient operating capital, they struggled to bridge the financial gaps involved in reconditioning vehicles for sale, particularly costs associated with purchasing, transporting, and detailing inventory.

Solution

Accelerated Support

Patton Motorcars approached Merchant Growth for a fast, efficient, and realistic funding option. Unlike the lengthy and detailed processes required by other institutions, Merchant Growth provided a streamlined application experience. The process took less than a week, allowing Patton Motorcars to receive the capital they needed quickly, which was crucial to maintaining their business flow.

Using the funds from Merchant Growth, Patton Motorcars was able to:

1. Repay their initial CEBA loan in time to qualify for the $20,000 loan forgiveness.
2. Secure additional funding through a top-up option to cover ongoing operational costs, enabling them to:
   • Bridge cash flow needs while waiting to purchase vehicles.
   • Finance transportation expenses for cars shipped from the Lower Mainland.
   • Cover mechanical repairs and detailing costs needed to prepare vehicles for sale.

Result

Driving Success

With the support from Merchant Growth, Patton Motorcars maintained steady operations and continued to grow. The additional funding provided the flexibility to navigate cash flow challenges, expand inventory, and focus on quality. In their own words, “The process was quick and easy. Other applications take forever to get back to you, but Merchant Growth responded right away. They didn’t require unrealistic information, and the whole experience was straightforward.”

Key Takeaways:

• Fast Funding: Merchant Growth’s quick and streamlined process allowed Patton Motorcars to receive capital in less than a week.
• Flexible Re-Up Options: The top-up feature provided ongoing access to operating capital, making it easier to handle unforeseen expenses and cash flow gaps.
• Enhanced Cash Flow: Merchant Growth’s funding ensured Patton Motorcars could maintain operational momentum, covering repair and reconditioning costs for steady inventory