The Scenario
Established in 2000 and headquartered in Tasmania, this business is a leading supplier of animal feed and pet products across Australia and New Zealand. The company manufactures all of their products in Australia, using local ingredients of the highest quality. The business includes both manufacturing and retailing arms, as well as a logistics unit that handles all of their transport needs.
March 2020 saw the business’s biggest turnover on record. With the category exploding in growth, sales continuing to flourish and a strong FY21 forecasted, the business turned to Octet for financing to help support this increase.
The Solution
The business identified an opportunity to help manage its growth by taking advantage of attractive supplier terms. The additional funding would help the company both to secure these terms and to build more space in their premises to accommodate extra stock.
Octet discovered that the company was perfectly positioned for growth. Profitable, well-capitalised and operating in a booming industry, the business also had new distribution points set to open around Australia. Improving working relationships with key suppliers and taking advantage of favourable supplier terms would position the business well to achieve its targets.
The company was originally issued a $1.6 million Octet Trade Finance facility, but based on business performance, Octet increased this facility to $2 million. Then, just six months later, continued strong performance led to another increase, this time to $3 million. With access to this flexible finance from Octet, the company now has the power to scale and take advantage of growth opportunities in its fast-growing sector.
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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.
