As a leading supplier of custom-fabricated steel, one company in NSW had the potential to expand, but the limitations imposed by their traditional bank financing were holding them back. With strict conditions and a lack of flexibility from their debtor finance facility, they struggled to achieve their growth objectives. Seeking a more innovative solution, they turned to Octet, to support them with their expansion plans.
A burgeoning company’s stifled growth
With over a decade of working alongside highly skilled steel fabricators and machinists to offer high quality products, the company had established itself as one of Australia’s largest privately owned steel distributor. The specialist steel fabrication business for residential dwellings had developed strong partnerships with leading suppliers in the construction industry and was well set up for expansion.
However, they found that the finance options provided by the banks could not support their rapid growth objectives. The process was too slow and cumbersome, and conditions didn’t align with the needs of the business.
After hearing a radio ad for Octet’s supply chain finance solutions, they reached out to Dan Verdon, Octet’s Director of Working Capital Solutions – NSW, to learn more.
This transition proved to be a game-changer, helping the company not only meet but exceed their growth expectations. After getting to know the business, Dan helped facilitate a Trade Finance facility while using their existing bank’s debtor finance facility concurrently. After their original contract with the bank ended, they refinanced from their existing Debtor Finance facility and scaled up significantly with Octet.
A tailored finance solution for growth
Octet’s online platform made it easy for BSD and their accountants to maintain complete visibility over their finances and trading history with key suppliers. The supply chain platform allows businesses to track, validate and authorise transactions at every step, making business management and financial decisions simpler.
The Octet supply chain management platform provided seamless visibility into a company’s finances and trading history with key suppliers, making business management easier. It also allowed the business to track, validate, and authorize transactions at each step, ensuring that the company’s cash flow is optimised, even during peak trading periods.
Following the investment in new premises and machinery, the business turnover grew by 40% within twelve months compared with the previous period. As a result, the receivables facility provided by Octet increased in line with that growth.
Impressive growth and new Opportunities
The working capital solutions, like those the business leveraged at the beginning of its partnership with Octet, help fund transactions at critical points of the company’s trading cycle. They boosted cash flow and ensured stock was available during peak periods. This type of solution was particularly beneficial during the growth phases of the company, but can actually be applicable at any stage.
For the steel supplier, the power to scale and accelerate business growth was made possible with Octet’s Trade Finance facility, which can be customised to reflect a business’s growth objectives. It allows companies to do things their way and set supplier trading terms that suit them. Importantly, it can also be tailored to suit most businesses and industries.
Thanks to Octet’s trade finance solution, the company has seen significant revenue growth, with a 71% increase over the past three years and with relocation to larger premises, expansion is expected to continue. The improved financial flexibility has also enabled the company to procure stock from local and global suppliers more efficiently, accelerating business operations. Having access to quicker, more efficient financing has transformed how they do business. It allows them to meet the needs of customers without the delays previously experienced.
A partnership built on solid foundations
Octet provides a suite of financial services and solutions to businesses so they can flourish without having to navigate the roadblocks of traditional banks. Trade Finance and Debtor Finance are just just one of the ways Octet helps businesses thrive. Octet also works with a wide range of businesses across industries, providing other tailored working capital solutions to help them achieve their goals.
Contact us today for more information on how Octet can help your business thrive.
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.
