In the highly competitive Australian food and beverage distribution industry, businesses need to stay nimble, especially in a market where customer tastes and preferences constantly evolve. A Melbourne-based importer specialising in Asian cuisine, frozen goods, and alcoholic beverages, was on a mission to become Australia’s go-to supplier of Asian brands.
Established over 15 years ago, the business has grown steadily, earning a reputation for quality and reliability. However, to maintain its upward momentum, it needed financial flexibility to secure new products, meet rising demand, and attract international brands looking for distribution in Australia.
This is where working capital finance from Octet, introduced via our partnership with Corpay Cross-Border, was a game-changer, helping the company unlock growth potential in ways traditional financing couldn’t.
The challenge of scaling operations with a traditional finance facility
After a sustained period of steady 5% year-on-year growth, the business needed to scale up to meet increasing demand. Operating three distribution centres and managing a large fleet, it had established contracts with several Australian food retailers and exclusive distribution rights to numerous Asian brands. The goal was to continue to expand product lines and diversify offerings to become the preferred partner for new brands entering the Australian market.
Despite an impressive track record and commitment to excellence, cash flow management remained a challenge.
“The company had been working with a $400,000 trade finance facility from another financier,” explains Tony Ahdore, Octet’s Director Working Capital Solutions – VIC, TAS, SA. “While useful, this facility had limitations: it was expensive, offered a relatively low credit limit, and lacked integrated foreign exchange (FX) support.”
The business recognised that it needed a larger, more flexible finance solution to meet its growth targets.
How the Octet-Corpay partnership brought fresh perspectives
In April 2024, Octet and Corpay Cross-Border announced a collaboration focused on delivering innovative, tech-enabled financial solutions for businesses navigating the global trade landscape. Corpay, renowned for its expertise in cross-border payments and FX risk management solutions, identified that Octet’s working capital solutions could complement its services to Australian clients.
As part of the partnership, Corpay Cross-Border’s Head of APAC Enterprise Sales, Michelle Mak, introduced the importer to Octet Finance, believing that Octet’s tailored working capital finance could be the perfect solution to the company’s cash flow challenges. The introduction provided the business with access to Octet’s expertise in trade finance and a streamlined supply chain finance platform, while Corpay’s robust FX hedging tools were integrated into the solution to help the business manage currency risk with each international purchase.
Empowering growth with a flexible working capital facility
Octet provided a $1 million Trade Finance facility – a substantial increase over their previous financier’s line of credit.
“With this enhanced line of credit, the business could purchase a higher volume of finished goods from overseas suppliers, secure better pricing, and ultimately keep pace with customer demand,” Tony said.
The benefits of the Octet-Corpay solution went beyond increased funding. The Octet platform allowed the company to efficiently track transactions and control cash flow in real time, all through the intelligent supply chain platform. Combined with Corpay’s FX management tools, Octet’s facility gave the business a single, streamlined solution for handling both financing and FX exposure.
No longer needing to juggle separate systems or worry as much about fluctuating currency exchange rates, the business could focus on sourcing new products, expanding its offerings, and solidifying its position as a top importer in Australia’s food and beverage industry.
A catalyst for growth in a competitive market
For Australian businesses looking to scale internationally, this client success story illustrates how working capital finance can be a crucial driver of success. Octet and Corpay are supporting the company on its transformation from a steady performer to a growth-focused leader. The partnership enabled the business to leverage trade finance effectively, allowing it to navigate cash flow challenges, manage FX risks, and capitalise on expansion opportunities – all while mitigating many of the constraints of traditional financing.
Tony notes, “In an economic climate that often limits growth options for small-to-medium enterprises, working capital finance solutions like Octet’s can be a game-changer for companies with vision and ambition.”
As demand continues to grow for the business, Octet and Corpay are ready to adjust and increase the facility limit as needed. The importer’s leadership team is optimistic about the future, confident that with the right financing, their business will continue to flourish and set new standards in quality and service.
A partnership for sustainable growth
The collaboration between Octet and Corpay reinforces their commitment to supporting Australia’s innovative business community by providing the tools and expertise that can help companies unlock their potential and achieve sustainable growth.
If your business is facing cash flow challenges while striving to scale, similar to this Australian importer in the food and beverage industry, you may wish to consider a flexible working capital finance solution. By partnering with Octet and Corpay, you can unlock the growth potential of your business with enhanced financing, integrated foreign exchange tools, and a streamlined platform for managing both working capital and currency risk.
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.
