The Scenario
This Victoria-based trade signage group specialises in trade signage printing services and printing supply and equipment distribution. The group is a leading distributor of high-quality signage, printers and printing products in Australia and New Zealand, with a fast growing and energetic team.
In a period of rapid expansion, and with a forecasted annual turnover of $12.5m, the business originally approached Octet for a Debtor Finance facility. At the time, they were going through an extensive cost-cutting process to reduce outgoings and streamline their staffing and procurement processes.
The Solution
As part of a thorough assessment, Octet reviewed the creditors and debtors ledgers, and found that both were well spread.
This meant Octet could offer to fund the existing debtors ledger, along with new invoices going forward, under a flexible Debtor Finance facility of up to $1.75M spread across the group.
This facility, together with a robust Trade Finance facility of $350K, helped to create more cash flow and free up working capital. With overheads reduced, flexible lines of credit established and new access to invoiced funds, the company is set to well exceed their forecasted profit over the next financial year.
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Disclaimer: The following comments are only our views and should not be construed as advice. You should act using your own information and judgment. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgment as at the date of publication and are subject to change without notice.
