Running a freight forwarding business means managing multiple moving parts—timely deliveries, supplier relations, and financial liquidity to keep everything flowing smoothly. For a freight forwarding company based in Western Australia, cash flow became a significant bottleneck to their growth. Despite being profitable and experiencing strong sales growth, the company faced tight financial constraints due to limited access to working capital. That’s when they partnered with Octet to address their immediate challenges and set them up for future growth.
Cash flow strain from restrictive financing
The company’s existing debtor finance facility with another financier was both costly and inefficient. While the business was growing, the existing cash flow funding didn’t keep pace with the increased sales, creating a substantial cash flow gap. The company was also dealing with stretched supplier relationships and an ongoing ATO debt under a repayment arrangement, which added to the pressure.
In addition to the debtor finance line, the company had a bank loan that came with restrictive terms and security requirements, further limiting their financial flexibility. With future expansion in mind, the business needed to find a more robust financing strategy to support their growth plan, so they engaged Shane Crouch, Director of Comden Financial Group.
A tailored, innovative finance solution
Recognising the need for a more effective working capital solution, Shane introduced the business to Octet’s Director of Working Capital Solutions VIC/TAS/SA, Sam Ralton, who then collaborated with Nigel Thayer (Octet’s Director of Working Capital Solutions for WA). With a deep understanding of the unique cash flow challenges in the freight forwarding industry, Nigel proposed a tailored multi-facility solution that provided a significant funding boost to alleviate financial pressure.
The package included:
- $1.4 million Debtor Finance Facility – Allowed the business to access the cash tied up in unpaid invoices, providing immediate liquidity to keep operations running smoothly and reduce payment delays.
- $50,000 Trade Finance Line – Ensured goods could continue moving through the supply chain without delays, improving supplier relations and payment efficiency.
- $450,000 Term Loan – Aimed at paying off the restrictive bank loan, the term loan provided the company with more flexibility, offering a three-year repayment term and freeing up much-needed cash for day-to-day operations.
The Managing Director of the freight forwarding company stated: “The Team at Octet made the funding process seamless, providing a tailored solution that aligned with our business needs. Their expertise, professionalism, and efficiency in approving and setting up the facility were invaluable.”
With Octet’s tailored solution, the company could pay down key suppliers, meet their ATO obligations with greater ease, and position themselves for growth in new markets.
Shane adds: “Octet had a comprehensive understanding of the situation, and they acted swiftly and efficiently to secure the required financing. Moreover, they were able to assist by providing an additional $500k at the last minute to resolve an issue caused by the outgoing financier.”
Stronger cash flow and future growth opportunities
Since the finance facilities were put in place towards the end of 2024, the business has already seen a positive transformation. The Octet working capital facilities have helped the company:
- streamline cash flow
- strengthen supplier relationships
- expand into new markets
“From the very beginning, Octet took the time to fully understand my client’s business and its unique needs, which was critical in ensuring the right solution,” continues Shane. “Thanks to their dedication and professionalism, we were able to achieve a favourable outcome.”
In an industry where cash flow is the lifeblood of operations, working capital finance can provide the flexibility needed to thrive. By partnering with Octet, this freight forwarding business gained a tailored financial solution that addressed their immediate challenges and set them up for the future.
“Octet provided a flexible structure that has helped improve our cash flow and overall financial position, allowing us to focus on growth with confidence,” said the Managing Director. “We appreciate their genuine proactive approach and ongoing support.”
Power your growing business
If your business is experiencing cash flow challenges or you want to capture new opportunities for rapid growth, Octet empowers businesses across a range of industries, including transport, wholesale, and manufacturing. We work successfully with Australian businesses facing these same growth challenges every day, providing innovative Trade Finance and Debtor Finance working capital solutions and supply chain finance technology.
Speak to our team of working capital specialists to see how we can power your business growth today.
Disclaimer: These 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.
