[Sponsored Post] How Paddock NYC uses Pipe to grow on their terms

This is a sponsored post from one of our 2022 sponsors, Pipe.

Exotic automobile enthusiasts in New York City are already familiar with Paddock NYC, the first automotive storage facility dedicated to exotic vehicles in Manhattan. Paddock NYC is taking a new approach to storing cars in the big city. As many garages in New York refuse to take in luxury, exotic, and classic cars, owning and keeping them in the city is significantly harder. Paddock NYC has flipped that model on its head by providing a storage and lifestyle solution specifically for these unique vehicles.

Paddock's founder, Justin Lopez, understands what luxury car enthusiasts want in a storage service. His experience working with exotic vehicles in NYC showed him how challenging it could be to find safe, secure storage solutions for these cars, as well as an environment for enthusiasts to share their passion for exotic vehicles. In founding Paddock NYC, Justin's goal was to create a space that could give his customers a sense of security and community at the same time.

The company started with one garage located on the Upper East Side, but Justin quickly realized that more space was needed. With devoted customers and strategic marketing, demand was outpacing Paddock’s available garage space. To expand, Justin started looking for flexible financing options.

The challenge: Funding growth without giving up control

As Paddock’s customer base grew, Justin needed to quickly secure new spaces or risk having to turn down new clients. He was looking at two additional spots in Manhattan to give potential clients a wider variety of locations and a shorter commute when they want to take their cars out for a spin. 

However, Paddock’s growth was so rapid the company didn’t yet have the resources to fund new sites on its own. And in the fast-moving New York real estate market, they didn’t have time to wait for traditional, time-consuming financing methods. Paddock needed flexible, fast recurring revenue financing to lock down new locations and keep the momentum going.

Paddock NYC isn’t the only service-based business that’s needed help expanding into new locations. Learn how Bungalow found financing with Pipe to expand into 10 new markets.

The solution: Flexible access to non-restrictive, non-dilutive capital

As Justin was searching for solutions, he happened to hear about Pipe while listening to the Equity Crunch podcast and signed up immediately. According to Justin, the choice was obvious. “Other financing terms [offered by competitors] are not as clear-cut as Pipe,” he says. 

Justin chose to work with Pipe due, in part, to the self-serve, automated nature of the trading platform, and how it grows with his business “What’s exciting is that as I grow my revenues, [...] it keeps extending the line.”  The team always know how much capital is available at any time and can access it with the click of a button when they need it. This allows Paddock NYC to remain flexible and expand quickly while still maintaining complete control over when and if they choose to raise equity from investors. 

Discover how Pipe is different from equity financing and how Pipe’s non-dilutive financing can work alongside equity.

The outcome: Paddock NYC continues to grow on their terms

Just this year, Paddock NYC has used Pipe multiple times to quickly access cash at a low cost of capital. Paddock NYC used their Piped capital to acquire its second Manhattan location, doubling the company’s storage capacity and expanding their services to cover both the Upper East Side and Midtown.

The process went so smoothly that Paddock NYC is continuing to work with Pipe as it pursues expansion into the rest of NYC and into Miami. “Pipe is like insurance," says Justin. "[We] like to know that it’s there and [that] the process is very controlled. We decide if and when we use it." As a result of working with Pipe's recurring revenue financing, Paddock NYC has doubled its revenue and continues to grow.

Learn more about how Pipe works for service businesses and explore how other customers are using Pipe to expand their businesses without giving up control.