In the ever-evolving Australian business landscape, a family-owned wholesale steel supplies business sought to navigate the transition from growth right through to retirement. Facing financial hurdles amidst rapid expansion, on the advice of their commercial finance broker, they turned to Octet for tailored working capital solutions. Via a strategic partnership between the broker and Octet, the business created a clear runway to reach their goals.
Transitioning from solid growth to retirement
Under the management of a husband-and-wife partnership, this family-owned enterprise had flourished, boasting an annual turnover of $18 million. With projections indicating a climb to over $25 million in sales within two years, the future appeared promising.
However, financial complexities emerged. While ANZ provided vital support, including a $200,000 overdraft and a $1,000,000 Commercial Loan Facility, encumbrances against their home and accumulating shareholder loans strained personal finances. With retirement goals in mind, the owners aimed to fortify their superannuation, setting a target of $2 million for extra peace of mind.
Octet’s Debtor Finance Facility: A strategic cash flow solution
Recognising the delicate interplay between personal and business finances, the family-owned business sought expert guidance. Their broker engaged Octet, offering tailored working capital solutions to address the business’ complex needs.
Octet’s Debtor Finance Facility emerged as the appropriate strategic tool for financial agility. Leveraging the business’s approved $3 million receivables ledger, the facility provided an 80% advance, ensuring immediate access to funds. This facilitated settlement of the existing ANZ facilities, freeing the family from personal debt.
“This liquidity fueled the business’ growth aspirations and facilitated loan payoffs, marking a significant milestone for the business,” said Brendan Green, Octet’s General Manager – Working Capital Solutions.
Empowering retirement and financial resilience
Empowered by this financial restructuring, the business owners redirected their focus towards retirement planning. With an after-tax contribution of $100,000 into their superannuation and adjusted loan repayments, they aimed to bolster their super balance to $2 million over a decade.
Through the guidance of their broker, and smart working capital solutions from Octet, this husband-and-wife team avoided anchoring their retirement solely on potential business sales, ensuring financial resilience regardless of any outcomes.
Says Brendan: “With some expert advice and strategic manoeuvring, the business owners overcame challenges, aligning personal and business finances for a prosperous future.”
Grow your business with Octet
Via our Referral Partner Program Octet empowers businesses across a range of industries, including labour hire, manufacturing, wholesale and transport, offering innovative debtor finance and other working capital solutions.
Speak to our team of working capital specialists to see how we can power your business growth today.
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.
