Your business is strong. Demand is growing. You’re ready to take your company into its next phase. But how do you make the transition successfully?
Moving through various phases of business growth can be a rewarding – and challenging – time. When risks and opportunities are abundant, you need the right finance partner to ensure success. Our key recommendation? Look for flexible finance solutions to ensure your business can quickly capitalise on new opportunities.
What is business growth?
Ask any business owner about their goals, and the answer will inevitably relate to growth. Whether it’s a vertical expansion (like venturing into related products and services) or horizontal diversification (such as bringing a traditional brick-and-mortar retailer into the ecommerce space), there are many ways a company can grow.
But these periods of change come with uncertainty, particularly around financials.
Brett Isenberg, Co-CEO of Octet, believes the most critical time for a business to be on top of its finances is during a growth phase.
“It’s critical for all key staff and departments, not just the finance team, to understand and value the numbers,” he says. “This is especially true for high-growth businesses where there are both significant risks of failure and significant opportunities.”
How to promote business growth
So, what do you need to ensure your business growth phase is successful? While every business is different, successful growth usually requires an appropriate and sustainable funding or working capital base, especially during the early stages. But obtaining funding is also one of the biggest challenges.
For businesses planning a growth phase, it’s important to look for flexible, secure and sustainable funding options.
Smooth business growth is possible with tailor-made working capital solutions such as debtor finance and trade finance.
When researching the best finance solution for your growing business, Brett recommends looking for products that are “designed to cater for common fluctuations in business supply chains”.
“For example, our debtor finance facility grows and flexes with a business’s sales volume and enables further growth, giving you early access to a large percentage of your accounts receivables,” he says.
Octet’s recent, successful partnerships with leading Australian businesses, including Builders Steel Direct and Vinomofo, demonstrate the possibilities. Using our supply chain finance solutions, these companies were able to grow to meet demands and seize critical opportunities when they arose.
“Many of our clients and members are rapidly growing businesses that have only been operating for less than ten years,” Brett says. “These are businesses that have demonstrated remarkable growth through their product, marketing and overall business strategy.”
Why fast-growing businesses partner with Octet
Traditional finance solutions (provided by banks) and government initiatives like the Australian Business Growth Fund may appeal to companies entering a growth phase, but these avenues often come with burdensome conditions and lengthy approval processes.
In contrast, Octet delivers flexible products and specialised support for high growth periods. Partnering with us offers advantages that business growth funds and other finance providers rarely deliver, including:
- Tailored supply chain finance solutions. “Our unique supply chain finance management platform and technology gives better financial visibility, supplier transparency, and added security,” Brett says. These factors are especially crucial during higher business growth phases and for international transactions.
- Flexible lines of credit and criteria. “Octet determines funding limits by better understanding the business’s balance sheet and financial strength – including any growth plans,” Brett says. We offer flexible lines of credit that grow with your business, and can combine Trade and Debtor Finance funding limits to meet increased customer demand.
- Streamlined processes and dedicated service. We give businesses the tools and confidence to grow while providing dedicated service and support. As the key elements of your supply chain network connect through Octet’s platform, processes become streamlined and more efficient. This technology is then backed by our experienced team of supply chain finance specialists.
Brett urges business owners to explore all finance options – even the unfamiliar ones – before entering a planned growth stage.
“The reluctance to pursue non-bank debt financing is sometimes borne of a fear of the unknown and the multitude of finance options available,” he says. “Speak with your industry peers, a finance consultant or your business’s accountant to look at the pros and cons of every solution.”
Giving you the power to grow
Octet’s working capital solutions can help your business to accelerate growth and seize opportunities as they arise. Contact our team today for a tailored working capital approach to achieving your business goals.
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.
