Trade Finance Archives

How to manage business growth: strategies for sustainable success

Posted on November 6, 2024November 19, 2024 by Russell Walsh

Managing business growth is a challenge many companies face. Whether your growth is planned or occurs rapidly due to external factors, handling it well is critical to ensuring long-term success. From maintaining cash flow to addressing skills shortages, businesses must implement strategies that support sustainable growth.

This article explores how to manage business growth effectively and address expansion challenges, particularly for businesses in rapid growth phases.

What is business growth?

Business growth refers to the expansion and development of a company, whether through increased sales, market share, assets or workforce. So whilst growth generally signifies a positive trajectory, its meaning can vary significantly among different organisations depending upon their objectives.

Working capital specialist Neil Tunstall is the Managing Director at Thane Commercial. He highlights that the motivations behind business growth can vary. “There are so many different factors that impact every business, and each one is different. What are the objectives of the owners? Are they looking to create a very successful large organisation, or are they more comfortable with slower and more gradual growth?”

Neil advises businesses to take a strategic approach to achieve sustainable business growth. “Make sure you are working with your advisors and accountants, and put intellectual effort into forecasting,” says Neil. “Don’t just say we’ll grow by 10%; it needs to be strategic.”

Managing sustainable business growth involves setting clear objectives, understanding market dynamics and collaborating with financial experts to create a well-informed growth plan that aligns with the business’s unique vision and goals.

So, why is growth important in business? Growth is essential because it can contribute to profitability, increased market share and more competitive advantage. It allows businesses to innovate, expand offerings and attract investment. Sustainable growth fosters resilience, helping companies adapt to market changes while enhancing their long-term stability and success.

What is a good percentage for business growth?

A good business growth percentage varies depending on factors like economic growth, industry, company size and maturity. For many companies, an annual growth rate of 10% to 15% is considered strong and a particularly good growth rate for small to mid-sized businesses.

How to sustain business growth

Managing business growth can indeed be a challenging endeavour. To ensure sustainable growth, adopting a clear and actionable framework is essential. The following steps are a roadmap for how to manage growth in business:

Set clear and achievable goals: Defining realistic objectives aligned with your business resources is crucial for maintaining focus. Neil says, “Businesses need to be looking two to three to four years out, creating a roadmap with forecasting that includes the right structures.” This foresight allows organisations to plan their growth trajectory strategically.
Train and develop your team: Equipping staff with the necessary skills to handle increased workloads and embrace new technologies is vital for sustainable growth. Neil says, “A big part of growth is looking at how businesses grow their staff or people, so they come along the journey with them.” Investing in your team ensures they are prepared to contribute effectively to the business’ expanding needs. It’s also important to extend the team to also include key advisors and business partners when necessary.
Leverage financial management tools: Effective budgeting and forecasting tools are essential for managing cash flow and growth capital. Neil says, “You’ve got to make sure that the business has the runway to meet its growing demands.” By using these tools, you can learn how to sustain growth in business and make informed financial decisions that support your growth objectives.
Invest in technology: Digital transformation is essential for business growth because technology enhances efficiency and productivity. Neil advises, “Businesses should visit industry expos and actively engage with industry bodies to see what their competitors are doing to keep up with technological advancements.” Embracing digital and technical transformation enables companies to adapt and innovate in a rapidly changing market. It’s also important to understand how digital marketing helps in business growth.
Manage your supply chain: Ensuring your supply chain can handle increased demand without bottlenecks is critical for sustaining growth. Neil stresses the importance of evaluating supplier relationships: “What are the terms we’re getting from suppliers? Do we have the right structures in place to grow and meet obligations as they fall due?” A robust supply chain management strategy is essential to effectively meeting customer demands. Knowing how customer experience drives business growth is vital.

By following these steps, businesses can create a solid foundation for sustainable growth.

Leveraging working capital finance

Achieving business growth requires adequate funding, and leveraging tailored working capital solutions can support expansion without straining cash flow. Octet offers several solutions that can help businesses navigate the complexities of growth while maintaining financial stability. Here are three to consider:

Trade Finance: This form of working capital finance helps businesses manage cash flow during expansion by accelerating their supply chain and payment terms. Neil emphasises the benefits of trade finance, saying, “With Octet’s Trade Finance, businesses have the capacity to fund their full trading cycle, ensuring sustainable growth.” By providing immediate capital for inventory purchases and operational expenses, trade finance can bridge the gap between cash outflows and inflows, enabling businesses to seize growth opportunities
Debtor Finance: By unlocking cash tied up in unpaid invoices, debtor finance (also known as invoice finance) offers businesses immediate liquidity to fund growth operations. Neil notes that Octet’s Debtor Finance product is designed to be low-touch for clients: “This allows them to plan growth over the next 12 to 18 months without constantly revisiting credit approvals.” By accessing funds tied up in outstanding invoices through debtor finance, businesses can alleviate cash flow constraints and invest in initiatives that drive expansion.
Term Loan: Octet’s Term Loan is designed to help businesses secure the funds they need to grow. Available with flexible terms ranging from three months to three years, this loan allows businesses to borrow up to $2 million. It’s tailored for both short-term needs, such as bridging cash flow gaps, and long-term investments, like expanding operations or purchasing equipment. With a fast approval process and competitive rates, businesses can manage their finances with greater control and predictability.

Integrating these financial products into a comprehensive business growth framework can help overcome common business growth barriers and navigate the advantages and disadvantages of business growth. This allows companies to thrive and expand in today’s competitive market.

Learn more about how to maintain business growth with Octet

Sustainable business growth is achievable through strategic planning, team development and the effective use of working capital finance. By partnering with Octet, businesses can access the financial support necessary to navigate the key challenges of business growth and capitalise on opportunities, ensuring a thriving and sustainable growth trajectory.

Neil Tunstall is the Founder and Managing Director at Thane Commercial with over 40 years expertise in the banking and finance industry. Specialising in working capital solutions, Neil has built a reputation for delivering strategic financial services, particularly in debtor and trade finance.

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.

Explore your options: How to get a business loan alternative in the freight and transport industry

Posted on August 20, 2024November 19, 2024 by Duncan Khoury

Whether you’re operating long-haul or last-mile, one factor is crucial to transport industry success: healthy cash flow. It’s why transport and freight companies need solid financial partners in order to go the distance and strive for growth.

One option for improving your cash flow is exploring how to get a business loan from a bank. But a traditional loan has its limitations. The good news is there are many viable working capital alternatives that can drive your business to succeed.

Let’s begin by looking at some of the key challenges in the industry before reviewing available business funding options.

The industry challenges driving different types of business loans and funding solutions

In recent years, several challenges have significantly impacted the Australian transport and freight industries. Notably, volatile fuel prices and inflationary pressures on wages and operational costs continue to strain cash flow. Some persistent issues include:

high operational costs to cover vehicle maintenance, repairs, road user charges, toll charges, insurance, vehicle parts, vehicle registration and driver training and accreditation
Lengthy customer payment times with many businesses experiencing 30+ day payment terms
limited ability to pass on cost increases. For example, only a small percentage of trucking businesses can viably pass on increased fuel costs to customers, according to the Australian Trucking Association’s latest research

Allan Howe, Octet’s Working Capital Solutions Director for Queensland, notes that the cash flow squeeze caused by these challenges makes reliable funding solutions, such as freight finance, so vital for industry success.

“Typically, there is a cash flow gap in any transport operation,” Allan says. “You’ve got fixed costs such as insurance, wages, licensing and permits. Then, there’s your ongoing variable costs like fuel, maintenance and repairs. To compound matters, you’re generally only getting paid by customers every 30 to 40 days. Transport finance is therefore crucial in helping you to cover the cash gap.”

The limitations of traditional funding and business loan options

Traditional funding options for the transport and freight industry include:

Term business loans – usually in the form of a single disbursement that is repaid on a set schedule
Lines of credit – providing access to a set amount of funds where required
Bank overdrafts – offer access to extra funds when your businesses transactional account balance reaches zero

Businesses may choose between unsecured or secured traditional funding options, though many choose secured alternatives due to the higher interest rates generally associated with unsecured funding.

Allan says a major downside of traditional, secured funding options is that they tend to be property-backed, irrespective of whether it’s a standard bank loan, line of credit or bank overdraft. “As a result, many business directors use their own private assets as security to get funding,” he adds.

In addition to the risks associated with entangling personal assets with business assets, Allan cautions that traditional asset-backed funding options may have limitations for business growth.

“Property-backed traditional funding options will always be limited in their ability to release working capital to the business, and they won’t generally grow in sync with it. The funding options are only as flexible as the property’s value.”

Unlocking the power of trade finance and invoice finance for your transport business

Smarter, faster working capital funding alternatives to traditional bank loans are available. These include:

A trade finance facility, which is a flexible business line of credit where your financier pays your suppliers immediately while you repay your financier over time.
A debtor finance facility (also known as invoice finance) that enables a business to transform its accounts receivable into readily available cash. This process is sometimes referred to as freight factoring in the transport industry.
A term loan that unlocks additional working capital to expand operations or acquire new assets by as part of a Debtor Finance or Trade Finance facility.

Allan says that unlike traditional business funding options, alternative working capital solutions are designed to be flexible to grow with your business.

“If you get a bigger contract, your revenue may increase by 25% overnight. Your balance sheet must be able to support that. Working capital solutions can support this growth faster than traditional property-backed financing, where your funds are often limited to the property’s value.”

Allan emphasizes that dissatisfaction with traditional financing options has led many transport and freight companies to seek more innovative working capital solutions, like Octet’s debtor finance, to fund their growth.

“Many transport businesses come to us after a traditional financier has given them a property-backed overdraft. They’re frustrated. They can’t take their business to the next level because they need to increase their overdraft from $1 million to $2 million. Yet with a property-backed overdraft, they simply couldn’t get any further.”

The solution?

“Octet can tailor a debtor finance facility to suit your business needs. For example, one company we worked with in the transport and logistics industry was able to get increased working capital via our debtor finance solutions, with their funding limit recently doubling, minus the need to use personal assets as collateral.”

Go further with Octet’s working capital solutions

Your transport business needs a trusted finance partner to power its growth potential. Explore Octet’s range of intelligent working capital solutions to discover which product is right for your business. Contact our team of working capital specialists 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.

Boost your business: introducing our new business Term Loan

Posted on August 20, 2024September 4, 2024 by Duncan Khoury

Finding flexible and affordable financing can be challenging for any business. Increasing interest rates and restrictive bank terms often make it impractical for SMEs to access the finance they need.

Are you a business owner who needs more flexible finance options? Or perhaps you’re a commercial finance broker seeking better financing solutions for your clients? At Octet, we understand that the banks’ offerings are often too inflexible and take too long to approve. So, we’ve developed our new business Term Loan, a tailored financial solution designed to help you meet your business goals.

Whether you need a working capital loan for operating expenses, equipment financing, asset finance, or to restructure existing loan facilities, our Term Loan allows you to capitalise on opportunities, consolidate debts and grow your business.

Flexible financing for every business

With financial pressures continuing to impact SMEs, we’ve received feedback from our valued clients and broker network about the need for more flexible and affordable finance solutions. So, we launched the Octet Term Loan.

“We’ve listened directly to our clients, our referral partners and the market. We understand the need for a supplementary term loan product that we can package with our existing working capital loans for SMEs,” says Allan Howe, Octet’s Director of Working Capital Solutions, Queensland.

Our Term Loan is available to both existing and new Octet clients with Trade Finance or Debtor Finance facilities. Those registering for these facilities are also able to apply for the Term Loan, which offers up to $2 million in additional working capital with flexible repayment periods ranging from six months to three years. It’s the ideal solution for businesses seeking a short-term business loan.

“We have designed it to be very flexible, and can tailor the term of the loan to suit your business needs,” says Allan.

Our Term Loan empowers you with additional working capital to help you meet your business goals, such as investing in assets and new equipment, covering operational costs during quiet periods or consolidating existing loans.

A tailored solution for your business needs

Invest in assets, plant and machinery

Our Term Loans can be used to invest in assets to grow your business, secure additional space for your business or invest in machinery or equipment.

If a missing piece in your business is holding it back or slowing your growth, a fast cash injection can help. “It’s all about providing the extra firepower so you can seize opportunities and grow your business,” says Allan.

Keep on top of operational costs

Cash flow shortages can impact business growth. When cash flow slows, our Term Loan can help you manage operational costs efficiently. Pay for everyday expenses such as payroll, inventory, rent and utilities.

Pay out or retire existing debt

Use the Term Loan to retire or pay new and existing debt, including debt owed to creditors and the ATO. By retiring or paying out existing debt, your business can improve its cash flow, enhance its creditworthiness, have more flexibility in its daily operations and increase financial stability.

Consolidate existing loans

Our business Term Loan can be used to consolidate loans, giving you the ability to simplify loan repayments, reduce interest with our competitive interest rates or decrease monthly payments by extending loan terms.

With a fast approval process and competitive rates, you can easily consolidate loans, saving time and money.

Ready to grow? Apply for a Term Loan today

Octet has the financial tools you need to succeed. Already an Octet client? You can apply for a Term Loan of up to $2 million with flexible repayment terms ranging from six months to three years. Not registered yet? Contact us today and discover how we can help.

Explore our Trade Finance and Debtor Finance solutions and see how we support businesses in sectors such as manufacturing, construction, and transport.

* Terms and Conditions apply. Consult your dedicated Octet Relationship Manager or BDM for full Terms and Conditions.

Empowering a leading commodity trading business with tailored working capital

Posted on August 14, 2024September 4, 2024 by Russell Walsh

In the competitive world of commodities trading, maintaining a steady cash flow is essential for seizing new opportunities and managing everyday operations. With the pivotal advice and introduction by a commercial finance broker, Octet Finance supported a thriving business in the commodities trading and logistics sector, helping them overcome financial challenges and achieve sustained growth.

Identifying the financial challenge

Established in 2008, this business has steadily grown to become a leading player in the international trading of various agricultural commodities, as well as recycled paperboard, packaging and scrap metals. Their operations handle approximately 200,000 metric tons of grains, pulses, and oilseeds for export markets annually. With a robust procurement model that ensures full traceability from farm to mill, they have established long-term supply contracts with farmers and leveraged third-party warehousing in key port zones across Australia. This setup allows them to reduce costs and offer competitive pricing to customers worldwide.

Despite their success, the business faced a significant challenge: managing the cash flow required to support their rapid expansion. Their existing trade finance facility, provided by a more traditional financier, was no longer sufficient to meet their growing needs. They required additional working capital to continue their growth trajectory and maintain their competitive edge in the market.

Recognising the need for expert advice, the business turned to a trusted commercial finance broker. The broker, well-versed in the financial intricacies of commodities trading, quickly identified that the company’s existing financial arrangements were insufficient for their expanding operations. Understanding the business’s goals and financial structure, the broker recommended considering working capital finance as a solution to their cash flow issues.

The broker then introduced the company to Octet, who provided a tailored financial solution which proved to be a game-changer for the business.

Formulating a tailored financial solution

In considering the operational requirements of the commodities trading sector, Octet identified the need for a customised finance solution, providing the business with a $1m trade finance facility, specifically designed to address their working capital requirements. This facility enabled the company to manage their cash flow more effectively and seize new business opportunities without the constraints of limited funding.

Octet’s approach was not just about providing capital; it was about understanding the business’s unique needs and challenges. “By working closely with the company’s leadership, we tailored a solution that aligned with their operational model and growth ambitions,” says Brendan Green, Octet’s General Manager of Working Capital Solutions.

Transforming operations with additional capital

The injection of working capital from Octet had an immediate and transformative impact on the business. The trade facility was then increased to $4m to support its overall procurement requirements with a strategic supplier. The additional capital allowed the company to increase its acquisition of commodities, ensuring they could meet the growing demand from their customers. This expansion was crucial for maintaining their market position and continuing their growth trajectory.

With the flexibility provided by the financing, the business could manage its cash flow more effectively. This enabled them to pay suppliers promptly, secure better terms, and avoid the pitfalls of delayed payments that could disrupt their operations.

Improved cash flow and additional working capital also empowered the company to explore new business opportunities. Brendan adds, “They were able to enter new markets, diversify their product offerings, and establish stronger relationships with suppliers and customers alike.”

Additionally, the financial support from Octet strengthened the company’s overall financial stability. This was particularly important in a volatile industry where market conditions can change rapidly, and having a stable financial base made all the difference.

Planning for a prosperous future

The partnership with Octet marked a turning point for the business. With their immediate working capital needs addressed, the company could focus on strategic growth initiatives and long-term planning. They continued to leverage Octet’s expertise and financial solutions to navigate the complexities of international trading and maintain their competitive edge.

The role of the commercial finance broker was also instrumental in this success story. By understanding the business’s challenges and introducing them to the right financial partner, the broker facilitated a crucial connection that enabled the business to thrive.

Today, the business stands as a testament to the power of strategic financial support. Their story highlights the importance of having a financial partner who understands the unique challenges and opportunities of their industry. With Octet and their broker by their side, the business is well-positioned to continue its growth journey and achieve even greater success in the future.

Grow your business with Octet

Via our Referral Partner Program, Octet empowers businesses across a range of industries, including wholesale, manufacturing and transport, offering innovative Trade Finance and Debtor Finance working capital solutions.

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.

Understanding Working Capital Finance: A key tool for business growth

Posted on August 13, 2024September 10, 2024 by Russell Walsh

Working capital finance is a crucial business finance solution that helps organisations maintain adequate cash flow to effectively manage operational costs, invest in new distribution streams and expand into new products or markets without accessing their cash reserves. This type of financing addresses short- to medium-term needs, enabling businesses to cover essential expenses like stock, payroll, equipment and accounts payable. It can also assist businesses with accelerating the cash flow around their outstanding commercial invoices.

Commercial finance brokers play a vital role in helping businesses access working capital finance. These brokers facilitate various financing options to bridge gaps between cash inflows and outflows, especially during slow receivable periods or seasonal fluctuations. For commercial finance brokers, understanding the intricacies of working capital finance is crucial to advising business owners and financial decision-makers effectively.

When and how to access working capital finance

Working capital finance is primarily used by small-to-medium sized businesses across a wide range of industries, including retail, manufacturing, labour hire and healthcare services. These businesses often face cash flow challenges due to slow receivables, seasonal fluctuations, or the need to invest in greater inventory levels and more advanced equipment. Commercial finance brokers can identify and recommend the most suitable working capital finance solutions to meet their business client’s unique needs.

Dan Verdon, Octet’s NSW Director Working Capital Solutions, says that applying for working capital finance typically involves assessing the business’s cash flow needs and selecting the appropriate financing option. According to Dan, brokers support businesses in this process by evaluating their financial health, understanding the cash flow cycle, and recommending tailored funding solutions.

“For instance, a manufacturing company with a substantial accounts receivable might benefit from debtor finance, while a healthcare business importing medical consumables needing to pay overseas suppliers promptly will likely find trade finance more advantageous,” explains Dan.

Common types of working capital finance

Dan says it is important to understand the different types of working capital finance, how they work, and what’s best for the business’ situation.

“Navigating the various types of working capital is essential for optimising cash flow and ensuring supply chain management efficiency,” says Dan. “Understanding the best options for the business’ needs can enhance financial stability and provide a competitive edge.”

The various types of working capital finance include:

Debtor (Invoice) Finance: Access funds tied up in outstanding business invoices, providing immediate, personal security-free cash flow based on the accounts receivable.
Trade Finance: A revolving line of credit allowing businesses to pay their local and global suppliers quickly, improving cash flow and speed to market.
Term Loans & Asset Finance: Quick funding with fixed repayment schedules, ideal for immediate cash flow needs.
Trade Credit: Suppliers extend payment terms, allowing businesses to defer payments for goods and services, thereby managing cash flow more effectively.
Lines of Credit: Flexible access to funds up to a predetermined limit, allowing businesses to withdraw as needed.
Bank Overdraft: A short-term financing option that allows businesses to withdraw more money than is available in their account, up to an agreed limit.

The benefits of working capital finance

The benefits of working capital finance can be substantial. It improves cash flow, supports efficient operations, and enhances the business’s ability to seize growth opportunities. “By leveraging these financing options, businesses can maintain short-term stability and focus on long-term success, ensuring resilience and adaptability in a competitive market,” states Dan.

However, it is important to align the strategic implementation of supply chain financing with the requirements of the business. Some aspects to consider are:

Align financing with cash flow cycles: Ensure that the chosen finance solution matches the business’s cash flow patterns to avoid repayment stress.
Diversify financing sources: Utilise a combination of finance options to spread risk and maintain flexibility.
Monitor financial health: Regularly review the business’s financial performance and the total cost of any external finance facility to adjust strategies as needed.
Leverage relationships: Develop strong relationships with suppliers and financiers to negotiate better terms and rates

For commercial finance brokers, understanding and effectively communicating these aspects of working capital finance can have a significant, positive impact on the financial health and growth of their clients.

How to Calculate Working Capital

Understanding how to calculate working capital is fundamental for effective financial management. Working capital is the difference between a company’s current assets and current liabilities. The basic formula for calculating working capital is:

Working Capital = Current Assets – Current Liabilities

Current Assets	Cash and anything that can be converted into cash within a year, eg raw materials, accounts receivable, inventory, stocks, and bonds.
Current liabilities	Bills which are due to be paid within a year, eg accounts payable, payroll, tax, and overheads.

This formula provides a snapshot of a company’s short-term financial health and operational efficiency. Positive working capital indicates that a company can cover its short-term liabilities with its short-term assets, which is crucial for maintaining smooth operations and supporting business growth.

Octet Working capital solutions – powering business growth

Octet’s tailored working capital financing and payment facilities help businesses effectively manage their cash flow and facilitate sustainable growth. With Octet, businesses can:

access a flexible line of credit to power business trade
leverage unpaid invoices to access fast working capital
expand business operations with a flexible, tailored loan
use existing credit or debit cards to pay suppliers
streamline payments and take control of the supply chain.

We offer a comprehensive suite of financial solutions to empower businesses with the capital they need to thrive.

Debtor Finance

This solution helps manage cash flow by providing immediate access to up to 85% of unpaid business invoices, without the need for personal asset security.

Trade Finance

Set flexible supplier payment terms with up to 60 days interest-free and 120 days repayment, whilst enjoying bank-beating FX rates.

Term Loan

Flexible finance for a range of business needs including investment in new assets, consolidation of loans or equipment purchase.

Octet Pay

Use business credit cards or other payment sources to pay any invoice. Benefit from market-leading FX rates when paying international suppliers.

Supply Chain Accelerate

A fast and flexible solution that pays 100% of supplier invoices with up to 90 days to repay.

Supply Chain Management Platform

Our innovative digital platform makes it easy to track, validate and authorise across each stage of a transaction.

Discover how to partner with Octet today

Octet is committed to supporting businesses through tailored financial solutions, helping them understand their cash flow and funding options and ensuring they are well-positioned to seize growth opportunities. If you’re a business decision-maker and want to know more, get in touch with the team today.

Or if you are a commercial finance broker with clients who could benefit from smarter working capital solutions, our Referral Partner Program empowers businesses across a range of industries with innovative working capital solutions.

Speak to our team of working capital specialists today to discover how we can power business growth.

Industrial expansion: Leveraging working capital finance for strategic growth

Posted on July 24, 2024September 27, 2024 by Russell Walsh

In the dynamic commercial landscape of regional Australia, a company operating in industrial insulation, cladding and roofing was on the brink of transformation. The company’s comprehensive service portfolio catered to a diverse range of industries, specialising in thermal insulation and fabrication. However, to stay competitive and meet the growing demands of their clientele, they needed to expand their operations and enhance their capabilities.

The key to unlocking their potential lay in securing adequate working capital finance. As such, the company sought a partnership with Octet to support their growth ambitions.

Boosting cash flow with debtor finance

Working with Octet’s Director of Working Capital Solutions, Dan Verdon, they identified debtor finance as a crucial component of their financial strategy that provided the company with the liquidity needed to manage their cash flow effectively. By leveraging their accounts receivable, they converted outstanding invoices into immediate working capital. This influx of cash enabled them to meet day-to-day operational expenses without delay, ensuring the smooth running of their business.

“The Debtor Finance facility was a game-changer,” said Dan. “It enabled the company to bridge the gap between invoicing and payment, reducing the stress associated with cash flow management.”

The initial requirement was for a $1.4m Debtor Finance facility. With steady cash inflow, the company could now focus on scaling their operations rather than worrying about payment delays from clients. It allowed them to tender for larger jobs, which triggered Octet to apply an immediate facility increase to $2.0m.

Empowering expansion through trade finance

Trade finance complemented debtor finance by addressing the specific needs of purchasing raw materials and equipment from suppliers. The $100,000 Trade Finance facility provided the necessary funds to secure critical inventory and equipment on favourable terms. This allowed the company to maintain a steady supply chain and meet the demands of their growing project pipeline.

By utilising trade finance, the business could negotiate better deals with suppliers, taking advantage of bulk purchasing and early payment discounts. This not only reduced costs but also ensured they had the materials needed to deliver projects on time and to the highest standards.

Dan states, “The client was particularly pleased with the unique feature Octet offered that enabled them to pay their current ATO debt through their trade facility.”

New investments in technology and equipment

One of the significant ways the company leveraged their working capital funding was through investment in state-of-the-art equipment and technology upgrades. The infusion of funds allowed them to purchase advanced machinery that enhanced productivity, efficiency, and safety. With cutting-edge tools at their disposal, the team could tackle complex projects with greater precision and speed.

These technological advancements positioned the company as a leader in their field, enabling them to deliver superior results to their clients. The ability to stay ahead of industry trends and continuously improve their service offerings became a competitive advantage.

Expanding the workforce and service offerings

Financing also played a pivotal role in expanding the company’s workforce. With the financial flexibility provided by debtor and trade finance, they were able to hire skilled professionals across various disciplines. The expansion of their team allowed them to take on more projects simultaneously, increasing their service capacity and ability to meet client demands.

Moreover, as market dynamics evolved, the company recognised the need to diversify their service offerings. The availability of working capital enabled them to explore new avenues and introduce additional services, such as asbestos removal. This diversification not only opened up new revenue streams but also made the company more resilient to market fluctuations.

Pursuing growth opportunities

The strategic use of working capital finance facilitated the company’s growth ambitions. With enhanced cash flow, upgraded equipment, and an expanded workforce, they were well-positioned to pursue larger and more lucrative projects. Their ability to deliver comprehensive solutions across various industries attracted new clients and strengthened relationships with existing ones.

Overall, the application of a Debtor Finance facility and a Trade Finance facility empowered the company to overcome financial constraints and drive business growth. By leveraging these financing options, they achieved operational excellence, expanded their service offerings, and positioned themselves as a dynamic player in the industrial sector.

“The story of their transformation serves as a testament to the power of working capital finance in unlocking a business’s full potential,” concludes Dan.

Grow your business with Octet

Via our Referral Partner Program Octet empowers businesses across a range of industries, including construction and engineering, manufacturing, transport and labour hire, offering innovative debtor finance and trade finance working capital solutions.

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.

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What is business growth?

What is a good percentage for business growth?

How to sustain business growth

Leveraging working capital finance

Learn more about how to maintain business growth with Octet

The industry challenges driving different types of business loans and funding solutions

The limitations of traditional funding and business loan options

Unlocking the power of trade finance and invoice finance for your transport business

Go further with Octet’s working capital solutions

Flexible financing for every business

A tailored solution for your business needs

Invest in assets, plant and machinery

Keep on top of operational costs

Pay out or retire existing debt

Consolidate existing loans

Ready to grow? Apply for a Term Loan today

Identifying the financial challenge

Formulating a tailored financial solution

Transforming operations with additional capital

Planning for a prosperous future

Grow your business with Octet

When and how to access working capital finance

Common types of working capital finance

The benefits of working capital finance

How to Calculate Working Capital

Working Capital = Current Assets – Current Liabilities

Octet Working capital solutions – powering business growth

Discover how to partner with Octet today

Boosting cash flow with debtor finance

Empowering expansion through trade finance

New investments in technology and equipment

Expanding the workforce and service offerings

Pursuing growth opportunities

Grow your business with Octet