In the dynamic world of fast-moving consumer goods (FMCG) and logistics, growth and efficiency are the lifeblood of success. This is especially true for a rapidly expanding Australian promotional logistics company, which found itself in need of an invoice financing solution to fuel its ambitious plans. Also known as ‘accounts receivable financing’, ‘invoice factoring’ or ‘debtor finance’, the solution allows for accelerated business cash flow and rapid growth.
Via a strategic partnership with Octet and a tailor-made debtor finance facility, the company overcame its financial challenges and soared to new heights.
Navigating growth in the FMCG arena
This Australian FMCG business has enjoyed great success. However, its fast rise hasn’t come without some unique challenges. Time and resources are crucial for FMCGs, and as orders surged and new opportunities emerged, the company was confronted with the need for substantial and reliable working capital. Traditional finance avenues proved slow and inadequate, threatening to stunt the company’s clear growth potential.
Facing this challenge head-on, the business sought a finance partner who understood the intricacies of their industry and could provide swift and flexible solutions. Enter Octet.
A tailored approach to funding growth
Octet’s experienced team delved into the company’s unique situation, recognising that more than a ‘one-size-fits-all’ solution would be needed. Drawing on their deep understanding of FMCG finance requirements, Octet proposed an Australian debtor finance facility. This solution would unlock the working capital in the business’ outstanding invoices, providing an immediate stream of funds to sustain growth momentum.
Dan Verdon, Octet’s NSW Director of Working Capital Solutions, explains. “The business’ main customer is a multinational food and beverage conglomerate, which sometimes represents up to 50 per cent of their entire receivables ledger.
“The company joined Octet in February 2023. We’ve since been able to provide the business with a debtor finance facility that has given them the funding they required without restricting any concentration percentage, which was key for them. Their previous financier couldn’t get comfortable with funding 50 per cent to one customer – so in that area, we’ve really made a material difference.”
The FMCG company needed a finance partner that could give them the cash flow boost they needed to keep growing
Ambitious growth projections established
Thanks to the cash flow boost and funding provided by Octet, the company’s growth trajectory can continue unhindered and its operations have accelerated due to the newfound financial flexibility.
“Initially, the facility limit was $3.2 million, and that’s already been increased to $4 million,” Dan says. “When they first became a client, annual revenue was $16 million. The business is now turning over $19 million, so that’s a pretty significant increase.”
Personalised service makes all the difference
Octet understands the importance of offering a personalised supply chain finance service. While traditional lenders often have client managers overseeing portfolios upwards of 60 clients, Octet supply chain finance specialists oversee significantly fewer, leaving more time to focus on each client’s unique cash flow requirements.
For our business clients, timing and agility are both crucial. Octet is able to swiftly tailor working capital and supplier payment solutions that meet their unique supply chain requirements.
“The key thing to understand is growth, and the dynamics of business growth,” Dan says. “Most of our clients using receivables finance are going through a growth phase of some variety. They don’t have the working capital or cash flow efficiency to take it to the next growth stage – that’s where we come in.”
Unleash your business potential with Octet
Octet’s know-how and customised supply chain finance solutions unlock remarkable growth for our clients across a range of industries. So what’s next for your business? Discover the benefits of debtor finance, trade finance and our other intelligent supply chain finance solutions today.
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.
