For a car rental business anywhere around the world, but particularly in a location close to 100% reliant on the tourist business, the pandemic has been challenging. Very successful business DAT Car Rentals was no exception. Their business was decimated.
Acting quickly to mitigate losses, DAT sold cars – a lot of cars – because the holding costs were too high, and they took advantage of any Government assistance to minimise outgoings on loans. They also thought outside the square to find ways to adapt to the current environment and developed their associated car wash service into a standalone business, now no longer just an add on to the car rental business.
Simultaneously alerted to Business Link Pacific’s Adaptation Grant by their accountant Hanalei Betham at BDO Samoa and by the local Chamber of Commerce, owner Peseta Demetrius assembled the requisite documentation for the grant. With Hanalei’s guidance, now in a BLP Business Advisory capacity, cashflows and budgets were prepared and submitted online.
The BLP Adaptation Grant, which was approved quickly, was used to purchase new equipment and chemicals and enabled DAT Car Rentals not just to stay afloat but to increase revenue from the car wash. The car wash continues to support the rental business, which will be re-energised now that borders have re-opened to the tourist market.
Peseta and the team at DAT are very grateful for the support they have received from both Hanalei at BDO and BLP in the form of the Adaptation Grant. “We would like to express our utmost appreciation as a recipient of the BLP Grant to the Board and Management of BLP. Times have been, and still are, very challenging for us but we have many ten families relying on our business operation, so there’s no option but to continue.”
With staff now numbering just 13, some on reduced hours or pay rates to help the business get through, Peseta is hopeful “the light at the end of the tunnel will slowly light up again so the business environment will improve. BLP has helped us out when we really needed it and it is greatly appreciated. We say fa’afetai tele lava to the BLP team.”
ENDS
The Finance Facility enables access to capital for stabilisation, recovery and growth of viable but financially distressed businesses in the Pacific Islands due to the impact of COVID-19 on the regional economy.
The Facility opened applications to Business Adaptation Grants across eight Pacific Island countries in January and June 2021. Adaptation Grants have benefitted over 200 businesses to date, and Business Link Pacific is currently processing a similar number of grants to be disbursed before the end of the year.
To further support recovery and growth, Business Link Pacific is negotiating key partnerships with Financial Institutions to offer concessionary lending to small businesses in the region and will soon make information available on accessing those products. The Finance Facility also offers curated information about financial products for businesses on its free online tool, the Finance Finder; visit today to find out what is available to your business right now.