Montreal-based Le Groupe Brande is in expansion mode these days and its ambitious plans are being fueled by Lightspeed Capital, a merchant cash advance system.
Tyan Parent, Founder and President of the retailer which offers the latest fashion trends, said the future is bright for the company as it looks to grow its store footprint in Quebec.
“A couple of years ago when they started their Lightspeed Capital process, they reached out to us saying you can have access to a certain amount of capital to go through your business, do whatever you want with it pretty much,” he said.
“At first, we were skeptical. We wanted to make sure that this was not something to be hard to manage. Easy to follow in terms of payment. And in all honesty, the process is very simple, very easy to maneuver, very easy to get information on the payments.
“Now, it’s been the fifth time we’re using Lightspeed Capital. The process is easy. It’s part of your cash flow model now. Every time we have access to extraordinary funds provided by Capital it helps us to buy more products ahead of time. Our model is to provide products at a discount. In order to do that, and get better margins, get better profits and products, we have to be able to pay in advance. Sometimes we don’t always have the cash laying around to buy products in advance. That’s why Lightspeed Capital became very handy for us to help grow the company.”
Parent said the company has had access to between $60,000 and $70,000 over the last two years.
The retailer, which started in 2017, currently has three stores operating in Quebec – MODA 1987 at Carrefour De L’Estrie (Sherbrooke); MODA 1987 at DIX 30 (Brossard); and Magasin Entrepot Brande at Decarie (Montreal).
“We’re looking to expand in the spring of this year,” said Parent. “We’re looking to open in Bromont.”
Future growth plans are based on the success of that new Bromont store.
“If someone is willing to invest $10 million tomorrow, I could probably open a larger number of stores. But it’s a private company. We’re not going to banks. So, we have to be very careful with our cash flow,” said Parent.
“Having access to extra capital (through Lightspeed) is helping us to be ahead of the curve, ahead of the game, in terms of getting product . . . Because of Lightspeed Capital we have access to products faster and access to deals where we might have said no to in the past.”
Unlike a loan, a cash advance, through Lightspeed Capital, has a fixed price and no set repayment schedule. The price doesn’t change regardless of how quickly the advance is repaid. It’s a huge benefit for small and medium size businesses who need superfast, stress-free funding.
Lightspeed is able to rely on its existing merchant relationship to make the merchant funding process seamless, including eligibility and underwriting, as well as risk mitigation. Because merchants use Lightspeed as their core operating system, Lightspeed has real-time visibility into a merchant’s performance.
Lightspeed sees an even greater opportunity today to double down on this offering given inflation and other economic challenges. Demand trends show an uptick during the summer months and holiday season for both retailers and restaurateurs. ‘Inventory/Purchasing’ is the most common reason merchants used their Lightspeed Capital funds.
In June 2023, Lightspeed expanded its international offering of Lightspeed Capital to the United Kingdom, Australia, New Zealand and Quebec.
“Businesses are the backbone of our communities, and Lightspeed’s goal is to make owning a successful business easier than ever,” said Asha Bakshani, Chief Financial Officer at Lightspeed.
“Our goal is to help alleviate roadblocks that traditional funding channels may require so our merchants can continue to focus on what matters most: growing their business while providing the best customer experience.”
Lightspeed Capital empowers business owners with its unique approach to funding:
- Simple Application: A quick, seamless and stress-free application process for merchants with no personal credit checks;
- Flexible Funding: Working capital is available in as few as two business days and can be used for any business need, from inventory and equipment through to staffing;
- Transparency & Stability: Flat-fee pricing, and no high or shifting rates, allows business owners visibility and peace of mind;
- Empowering Growth: Merchants have access to the cash flow they need to expand and take their business to the next level
How does Lightspeed Capital work?
- Cash Up-Front: The cash advance program provides working capital up-front to grow and support the merchant’s business;
- Predictable Payments: Merchant payments are a percentage of their daily sales; they pay more when their business is doing well, and less if things are slow;
- Secure Fees: Flat fees mean merchants don’t have to worry about fluctuating rates;
- Clear Communication: Merchants receive notification, in app or by email, that outlines how much they’re eligible for as a cash advance and the flat fee;
- No Deadline, No Interest: Merchants remit at the speed of their business. With no strict deadline, merchants can gradually pay the advance as a percentage of their daily transactions.
Lightspeed has created new teams dedicated to Lightspeed Capital adoption. Recently, Lightspeed made it so products now show a prompt in the product back office that will display if a merchant is eligible for a Capital offer. These prompts can be displayed in the different areas of the product, ideally in context to where they might be more apt to accept an offer (e.g. if a merchant sees a Capital offer when they go to manage orders with their suppliers). Merchants can then apply for that offer directly in the back office of Lightspeed – no need for an external application or a third party.
Le Groupe Brande has cut operational costs in half thanks to Lightspeed products and services. The company has experienced a 66 per cent reduction in training time as well as 60-to-70-man hours saved per week.
In 2020, Le Groupe Brande felt their old retail management system was holding it back, costing it time and money. Based on a business model that relies on high efficiency and low operational costs, the old system was not working for them.
The company found a solution with Lightspeed – a one-stop commerce platform that helps merchants streamline their operations and run their businesses more smoothly and efficiently.
“Since day one, the system has been pretty much self-explanatory. You look at the icons in the cash (register) and you can navigate easily through all the reports from a staff point of view, seamless operation. We saved time, and efficiency as well,” said Parent.
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