trade finance Archives | Page 2 of 3

Retail finance solutions: a national importer’s growth opportunity

Posted on March 23, 2023May 20, 2024 by Duncan Khoury

After significant revenue growth, this Australian importer had plans to purchase another business. But the facilities offered by their current financier (a traditional bank) were slow and insufficient. Through a mutual connection referral, Octet designed a retail finance solution that would enable the company to seize more opportunities and accelerate growth.

Restrictive bank facilities hindered growth

As a major importer of a wide range of electronic goods (from vacuum cleaners to air fryers and massage chairs), this Australian brand had already achieved outstanding success. They had achieved annual sales of circa $65M selling their products on Amazon, Kogan and other online retail sites via their large double warehouse.

Although the company was thriving, the long- and short-term business finance facilities offered by their existing bank were relatively limited. Worse still, the bank took too long to make decisions and imposed onerous conditions and criteria, even though the business was flourishing.

An opportunity for growth arose: the chance to purchase another importing business. To capture this opportunity, the company needed an astute, forward-thinking finance partner.

Expansion without boundaries

The Australian importer planned to expand their company and purchase an importer of kitchen and cooking equipment. Through a foreign exchange (FX) solutions partnership and referral, they found Octet.

Joe Donnachie, Octet’s Supply Chain Finance Manager, knew this relationship could provide a significant advantage for the importer.

“Due to our partnership with the FX provider, the business could use their locked-in contracts/rates with us free of charge when transacting overseas,” Joe explains. “Most other financiers would practically mandate that they use their own FX, which might not be as competitive.”

After assessing the importer’s unique situation, Octet proposed a highly flexible trade finance facility.

“It’s unsecured, so it won’t impede on their existing bank covenants,” Joe says. “And because our smart cash flow finance keeps their bank facility separate, it simply provides the business with a useful cash flow top-up.”

This trade finance facility sits within the Octet supply chain platform and links the business to its suppliers, giving the business a cash flow boost and an added layer of support.

For security, Octet conducts verification checks on the suppliers and performs all necessary due diligence. Once the company reaches its facility limit, it gets up to 60 days interest-free and total repayment terms of up to 120 days.

A close-up of a businessperson with calculator and budget spreadsheet — Businesses can use the strength of their balance sheet to access Octet’s working capital facilities

A thriving new venture acquired

With a cash flow boost and funding provided by Octet, the company was able to launch its new importing venture with great success, and without impacting its current operations.

“With our funding facility, they could utilise the limit for their existing business and donate a portion of it towards the new entity to assist with cash flow,” Joe explains.

Importantly, the company has financial independence. “Rather than having to rely on their director’s assets or property for a business boost loan, they’re relying on the balance sheet strength of their own entity,” Joe says.

Octet understands how quickly things move in business. While traditional lenders can take up to six months to provide a solution, Octet is able to set up a finance facility within weeks for a near-instant business loan. Having faster access to funding means being able to grasp opportunities as they arise.

Plans for future growth

With plans to expand into a larger warehouse, the online retailer expects more of their cash flow to stream into this growth. And Octet will be there to ensure a smooth transition and assist with supply chain finance.

“We’ll be continuing support for their supply procurement and solely focused on accelerating the businesses supply chain,” Joe says. “This should free up working capital for them to continue expanding, whether this looks like a new warehouse or location, or even the acquisition of more businesses.”

Seize opportunities as they arise

Partnering with traditional lenders and big banks usually entails onerous conditions and lengthy waiting periods. However, your business needs flexibility if it is to make timely decisions and act on emerging opportunities.

After speaking with Octet, you could be accessing innovative trade finance facilities within a matter of weeks and seizing valuable opportunities for growth, too.

Build a fast and flexible partnership with Octet

From retail to manufacturing and labour hire to transport, together we can help your business reach its full growth potential. Discover more.

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.

Working capital solutions for successful business growth

Posted on March 23, 2023May 20, 2024 by Duncan Khoury

Your business is strong. Demand is growing. You’re ready to take your company into its next phase. But how do you make the transition successfully?

Moving through various phases of business growth can be a rewarding – and challenging – time. When risks and opportunities are abundant, you need the right finance partner to ensure success. Our key recommendation? Look for flexible finance solutions to ensure your business can quickly capitalise on new opportunities.

What is business growth?

Ask any business owner about their goals, and the answer will inevitably relate to growth. Whether it’s a vertical expansion (like venturing into related products and services) or horizontal diversification (such as bringing a traditional brick-and-mortar retailer into the ecommerce space), there are many ways a company can grow.

But these periods of change come with uncertainty, particularly around financials.

Brett Isenberg, Co-CEO of Octet, believes the most critical time for a business to be on top of its finances is during a growth phase.

“It’s critical for all key staff and departments, not just the finance team, to understand and value the numbers,” he says. “This is especially true for high-growth businesses where there are both significant risks of failure and significant opportunities.”

How to promote business growth

So, what do you need to ensure your business growth phase is successful? While every business is different, successful growth usually requires an appropriate and sustainable funding or working capital base, especially during the early stages. But obtaining funding is also one of the biggest challenges.

For businesses planning a growth phase, it’s important to look for flexible, secure and sustainable funding options.

Smooth business growth is possible with tailor-made working capital solutions such as debtor finance and trade finance.

When researching the best finance solution for your growing business, Brett recommends looking for products that are “designed to cater for common fluctuations in business supply chains”.

“For example, our debtor finance facility grows and flexes with a business’s sales volume and enables further growth, giving you early access to a large percentage of your accounts receivables,” he says.

Octet’s recent, successful partnerships with leading Australian businesses, including Builders Steel Direct and Vinomofo, demonstrate the possibilities. Using our supply chain finance solutions, these companies were able to grow to meet demands and seize critical opportunities when they arose.

“Many of our clients and members are rapidly growing businesses that have only been operating for less than ten years,” Brett says. “These are businesses that have demonstrated remarkable growth through their product, marketing and overall business strategy.”

Why fast-growing businesses partner with Octet

Traditional finance solutions (provided by banks) and government initiatives like the Australian Business Growth Fund may appeal to companies entering a growth phase, but these avenues often come with burdensome conditions and lengthy approval processes.

In contrast, Octet delivers flexible products and specialised support for high growth periods. Partnering with us offers advantages that business growth funds and other finance providers rarely deliver, including:

Tailored supply chain finance solutions. “Our unique supply chain finance management platform and technology gives better financial visibility, supplier transparency, and added security,” Brett says. These factors are especially crucial during higher business growth phases and for international transactions.
Flexible lines of credit and criteria. “Octet determines funding limits by better understanding the business’s balance sheet and financial strength – including any growth plans,” Brett says. We offer flexible lines of credit that grow with your business, and can combine Trade and Debtor Finance funding limits to meet increased customer demand.
Streamlined processes and dedicated service. We give businesses the tools and confidence to grow while providing dedicated service and support. As the key elements of your supply chain network connect through Octet’s platform, processes become streamlined and more efficient. This technology is then backed by our experienced team of supply chain finance specialists.

Brett urges business owners to explore all finance options – even the unfamiliar ones – before entering a planned growth stage.

“The reluctance to pursue non-bank debt financing is sometimes borne of a fear of the unknown and the multitude of finance options available,” he says. “Speak with your industry peers, a finance consultant or your business’s accountant to look at the pros and cons of every solution.”

Giving you the power to grow

Octet’s working capital solutions can help your business to accelerate growth and seize opportunities as they arise. Contact our team today for a tailored working capital approach to achieving your business goals.

What are the best methods of financing a business in 2023 and beyond?

Posted on November 17, 2022May 20, 2024 by Duncan Khoury

As a business owner or director, there will be times when you need to access finance for your business.

You might need finance to grow, to buy stock or to see you through difficult times. But which method of business finance is right for your organisation? In this article, we explore some of the general challenges facing businesses, the traditional methods of business finance and some alternative financing solutions.

Why you need business finance

According to the Australian Government’s business.gov.au website, fluctuations in cash flow can have a serious effect on a business’s viability. As a result, one of the most common reasons a business seeks financial assistance is due to cash flow. But there are many other reasons why a business owner might seek funding. You might need business financing:

to help establish a new business
to purchase or lease property such as a factory or store
to expand a business or begin engaging in international trade
to purchase stock
for investment in vehicles, machinery or other tools and equipment
for research and development
during times of difficulty to help the business survive

New challenges in business finance

The global pandemic and its aftermath wreaked havoc on the world’s businesses, but when we finally emerged from COVID, business leaders and owners faced new challenges.

The smallest SMEs to the largest multinational companies felt the impact of global supply chain issues, increased costs, skilled worker shortages and ongoing global uncertainty. Record levels of inflation and rising interest rates put pressure on households, consumers and business owners alike.

According to a recent KMPG report, business leaders have also been left with concerns about staff acquisition and retention, cybersecurity and digital transformation, the disruption of remote workplaces as well as new technologies. If businesses are to survive in the future, they simply have to innovate.

There is no doubt that the way we do business has changed, and that includes finding new ways to access business finance. The good news is there are a variety of methods available to finance your business. Options range from the traditional, like loans and overdrafts, to the more flexible, like Debtor Finance and Trade Finance.

You’re probably familiar with the traditional funding options, but the more innovative types may actually suit your business better.

Let’s examine the various finance options available.

Traditional methods of financing a business

The Reserve Bank of Australia reports that since the second half of 2021, small and medium businesses have experienced relatively strong growth conditions. As a result, demand is high for business finance. But though demand is strong, businesses face many hurdles, including rising interest rates. This makes accessing traditional bank funding difficult.

So, how do you finance a business? Many business owners still default to familiar, conventional options when they need financing, and there are three basic ways to go about it. It can be achieved by:

using internal funds
organising debt finance
arranging equity finance

Each of these options has benefits and drawbacks. Let’s take a look at each.

Business Financing Method #1 — Internal Funds

As a business owner, you might prefer to fund your expenses and growth through internal funds, such as the cash and savings you already have sitting in your business. These internal funds might come from profits you’ve already enjoyed or by selling assets the business no longer needs. The main advantage of using internal business funds is that you don’t have to take on debt or repay any money to a third party.

However, internal funding or internal financing uses up your company’s available cash or assets, which may cause cash-flow problems later on when it’s time to pay expenses. It may also stifle your business’s growth by keeping you from taking advantage of opportunities that require readily available funds.

Business Financing Method #2 — Debt Finance

Financing your business through debt involves borrowing money from a lender, such as a bank or other financial institution. It most often takes the form of credit cards, overdrafts, lines of credit or loans.

On the plus side, this generally allows you to keep control of your business and profits, because no other parties have any ongoing shared ownership over your business. Plus, the interest paid is often tax-deductible.

The main disadvantage, of course, is that you need to repay the money you borrow — usually with interest. And in the days of rising interest rates, that’s of real concern. The RBA has recently indicated that not only will rates not fall in the near future, they will probably continue to rise.

So, while debt finance can be a good short/mid-term fix, it can also lead to more problems in the future. Many businesses also find it challenging to get debt finance without offering personal asset security, particularly if they’re just starting out or don’t have sufficient equity. But for an established business that is looking for funding to grow, debt finance is often a solid option.

Business Financing Method #3 — Equity Finance

The third popular business capital solution is equity finance, where an investor provides funding in exchange for owning a piece of your business. Typical examples of investors include venture capitalists (professionals who invest in existing companies) and angel investors (individuals who invest in start-ups).

This can be less risky than debt financing, as the investment isn’t a debt you need to repay.

The downside is that you lose control and ownership of part of your business. It can also be hard to find the right investors — people who are both willing to invest and who you want to share future ownership with.

Alternative, flexible business capital solutions from Octet

The pressures and challenges on businesses are changing, but so too are business owners and leaders. According to the report Where Opportunity Lies: Australia’s new small business boom, created by Xero in partnership with Accenture, a new generation of business owners is emerging.

The report shows that of the latest wave of entrepreneurs, 45% are aged under 35. Of those who started a small business recently, 37% were born overseas. Meanwhile, 36% of small business owners are women. The report also reveals that over the next decade, 3.5 million new small businesses are expected to be registered.

Without a solid credit history, this new wave of business owners might find traditional funding difficult to access and will be looking at non-traditional means to launch and grow their businesses.

Alternative, flexible business capital solutions are almost certainly the way of the future.

At Octet, we believe that businesses should ideally be able to fund themselves. Business owners and managers who can think laterally about funding are the ones in the best position to grow.

That’s why ‘funding your own business’ is at the heart of all our financing options. We offer three alternative business working capital solutions:

The right one for you depends on the size of your business and your unique needs.

Business Financing Method #4 — Debtor Finance

Debtor Finance uses the biggest ongoing asset most businesses will have: their accounts receivables. Briefly, this solution lets you convert up to 85% of your unpaid invoices into immediately available funding within 24 hours. This means you can have the funds straight away, without waiting the 30, 60 or 90 days it might normally take your customers to pay you. Just imagine how much that would improve your cash flow cycle!

Better yet, we offer this without requesting you use your property as security, which many banks require. Using the Director’s personal assets as security isn’t an issue when the property market is going well (assuming you own property). But if you’ve maxed out your property equity — or you don’t own any — you do need another option.

Our Debtor Finance solution is available to Australian businesses across a wide range of industries, from newer companies to well-established ones. Ideally, you’ll have an annual turnover of at least $1 million, and at least two years of business operation.

Business Financing Method #5 — Trade Finance

Trade Finance gives you a revolving line of credit to pay your suppliers both locally and in more than 72 countries. Again, we don’t need you to provide personal asset security. Instead, you’re generally securing funding against the strength of your balance sheet, with just a company and director guarantee.

With up to 60 days interest free and 120-day repayment terms, our Trade Finance facility is flexible too. You can use it either as your primary funding source or to supplement your current bank or other financing arrangements. So if your bank can’t offer all the funding your business needs, or you want to diversify streams, we’re happy to help.

To be eligible, your business ideally needs an annual turnover of at least $3 million to $5 million and to have shown a profit for the last two financial reporting periods.

Business Financing Method #6 — Supply Chain Accelerate

Our Supply Chain Accelerate facility is like a hybrid of Trade Finance and Debtor Finance. It links suppliers and buyers in one process to free up working capital, which you could use to invest in supply chain innovation or other business growth strategies. The supplier gets paid 100% of their invoice upfront while the buyer has 30, 60 or 90 days to repay us.

Supply Chain Accelerate is completely unsecured, with no director or company guarantees required. And because it’s an off-balance-sheet source of funding, it doesn’t interfere with you taking out other business loans.

If you’re a supplier, this facility is hugely beneficial when you deal with larger companies that have an extended payment cycle. It means you generally access the credit rating of the bigger company to get paid earlier. Meanwhile, as a buyer, you can take advantage of potential early payment discounts to pay upfront and free up cash flow.

Supply Chain Accelerate is available to larger, profitable businesses with a substantial annual turnover.

Power your business with Octet’s supply chain finance options

Every business, from the smallest enterprise to the largest company, will need access to financing at some stage in their lifecycle. Having reliable, accessible business finance is a must, particularly during times of uncertainty.

The best funding method for your business will depend on a range of factors. At Octet, we help you find the business financing solution that’s right for you. We not only power your business growth, but we also empower you as a business owner or executive with better control over your supply chain.

Our team of supply chain finance specialists have helped Australian business owners and their local and global trading partners access the funding required to succeed. And we’re ready to help you better understand your business finance options.

Ready to take the next step with your business? Let’s take it together… Talk to us today about how to finance your business.

Disclaimer: The following comments are only our views and should not be construed as advice. You should act using your own information and judgement. 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 judgement as at the date of publication and are subject to change without notice.

What you need to know when paying international suppliers

Posted on February 15, 2022May 20, 2024 by Duncan Khoury

If you’re experiencing local business growth, it’s likely you’re looking (or have already investigated) to import your goods and services from overseas. Australia has a rich history in international trade, from both an import and export perspective and many businesses are currently well placed to reap the benefits from this.

These benefits can include:

lower cost of raw materials
access to materials products that simply aren’t available, or are in short supply in Australia
developing partnerships that give you a logistical advantage over your competitors

While you may find your introduction to international trade management daunting, thanks to technology and increased global connectivity, it’s become easier to find, secure and trade with international merchants and suppliers.

We’ve put together this guide to help you weigh up your options, so you can make the right choice for your business.

Why you need to choose carefully

When entering the international trade market, streamlining your global business relationships is crucial. How you make international payments is an essential part of that process.

Your relationship with an international supplier can be derailed by even one delayed payment or unexpected fees.

It’s important you research a range of international payment solutions so you know your options. Once you have all the information, you can opt for the trade payables solution that works best for your business.

In an increasingly digital environment, security is of the utmost importance. And the world of business moves fast, which makes the speed of any finance approval crucial.

What to consider before making a decision

There are several factors to consider when deciding on the most appropriate payment method for your global trading partners.

Let’s take a look at the most important considerations.

Speed and reliability

You need to take advantage of opportunities when they arise and therefore it’s crucial that international payments, including any required funding approval, are fast and reliable.

Your suppliers also benefit from your quick payment of their invoices. This allows you to build trust and dependability, giving you a competitive advantage which is particularly useful during uncertain times.

Quick approval will also allow you to take advantage of any early payment discounts offered by your chosen supplier.

Cost-effectiveness

There are two components to think about when you calculate your total cost for international supplier payments.

The first is the margin. This is the percentage difference between the market rate of currency exchange (what you see if you search on Google) and the rate you actually get from your bank or other provider, which will include their fees (the margin).

Why is this important?

When you’re arranging payment to an overseas supplier, you need to agree on which currency you’re using to pay them. This tends to be the supplier’s local currency.

The second component is transaction fees. Most providers charge a set fee, which is a fixed fee on every single international payment you make. The amount of this fee varies.

When paying overseas suppliers, the exchange rate and transaction fees can affect your profit margin. This makes cost an important factor to consider when you’re making your choice.

Security

Today’s digital world has created a thriving market for hackers and scams. This means that whatever international payment option you select, it’s paramount that your business and your data remains safe.

The main things to consider here are:

Is every step in the supply chain finance process secure, physically and digitally?
Are the information systems used certified with best-in-market practices?
Is every stage of every transaction verified?
Are all members transacting in your chosen platform verified?
Are transaction security and anti-fraud technology used?

Another thing to check is whether your chosen international payments partner has processes for:

Anti-Money Laundering (AML)
Know Your Customer (KYC)
Counter Terrorism Financing (CTF), and
Economic Trade Sanctions (ETS) processes

What options are available?

Now that you’re aware of what to look out for, here are the most common methods of paying an international supplier.

Bank transfer

Businesses have their own business bank account. This is why people often think of using their bank first for international payments. It’s a simple solution as all you need to know is the supplier’s bank account details.

But there are downfalls of using traditional banking.

It can take up to five business days or more before the supplier receives your money. This means they place a great deal of trust in you, as the purchaser, to make the payment correctly.

The information you’re expected to provide to your bank makes it easy to make mistakes. You may inadvertently provide the wrong account number, or the bank may enter them incorrectly. This may result in your money transfer ending up in the wrong bank account.

The fees involved are generally higher than other modes of international payments. Some banks also deduct processing fees from the amount you transfer. This means the supplier may frustratingly receive less money than the amount required for full payment of any invoice.

PayPal or credit card

PayPal and credit card payments are quick, simple and secure. And PayPal has a dispute resolution process which can be useful when it comes to discrepancies between parties.

But international payments via credit card and PayPal payments are expensive. This often involves a flat fee as well as a percentage fee.

There can be delays transferring the money from PayPal to the supplier’s bank account too, causing unnecessary administrative work.

Non-bank FX transfers

Non-bank FX business to business transfers tend to be quicker than some of the other payment methods and have gained some popularity over the years.

However, while non-bank FX transfers are often secure, their processes can be inflexible. This can inadvertently lead to longer turnaround times, delaying supplier payments, and increasing exchange rate uncertainty.

Trade finance

Octet’s trade finance solution integrates FX for international suppliers, off the back of the funding facility. A great way to increase your purchasing power, it allows you to pay suppliers immediately. It’s a security-free funding and payment option that provides funds based on the strength of your business’s balance sheet. This eliminates the need for personal or director security.

Advantages of using Octet’s trade finance include:

access to a revolving line of credit to pay suppliers in over 65 countries
being able to make competitive FX payments in your suppliers’ choice of 15 global currencies
up to 120-day repayment terms, with up to 60-days interest-free
flexibility to step outside the rigid process of traditional banks

These advantages can strengthen your relationships with both local and international suppliers.

Find out more

Sourcing funding for business growth can be both exciting and challenging. It’s important that you find a solution that creates consistent, sustainable progress.

It’s a lot less stressful when you minimise financial issues in supply chain management. This is all part of implementing prudent international trade management.

If you’re ready to power up your business with streamlined payment options for international suppliers, then apply for our market-leading trade finance solution, or OctetPay.

Need to chat to one of our International Finance Specialists? Get in touch 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.

Disrupting an industry: funding strategy helps boost business growth

Posted on December 7, 2021May 20, 2024 by Duncan Khoury

Verus Global is an award-winning freight forwarding company that’s on a mission to bridge the gap between global giants and smaller local enterprises. The business is disrupting the freight forwarding industry using cutting-edge shipping systems and processes outside industry norms.

Customers get a real-time view of their shipping journey with complete visibility on all freighting consignments at every stage of the process.

With a commitment to transparency, streamlined shipping and minimal touchpoints, Verus Global boasts a stress-free and high quality standard of service.

The business grew fast after securing major customers in both Australia and the UK within its first year. This was four times faster than their projections, which meant they had to find additional finance quickly.

After securing funding for business growth, Verus Global has since more than tripled their sales. Now expanding their operations to new countries, they are an example of how to successfully execute a growth-led business strategy.

A fresh start with new challenges

Verus Global has already faced significant challenges since its establishment in January 2019. Operating across Australia, Hong Kong, China, and the UK, the business has dealt with major Hong Kong protests, Chinese New Year and of course, the global pandemic.

The varying impacts from different countries at different times had a major effect on cash flow and made finding the right working capital solution critical.

“We had a bit of a rough start with protests, Chinese New Year and especially the pandemic. We had China closed for an eight-week period and we still had to pay everyone’s wages – and that was just one example. It was certainly a challenging time.”

Jackson Meyer, Group CEO, Verus Global

Adding to these challenges was the impact of the Verus Global business model on cash flow. Unlike competitors in their industry, Verus Global covers all costs throughout the freight process and only invoices customers at completion of delivery.

While this approach certainly propelled their business growth, it also meant they had a longer cash flow cycle and greater working capital requirements. As a result, Verus Global began their search for innovative cash flow solutions to help work through these challenges and build on their business growth trajectory.

High growth, short trading history = limited cash flow funding options

While they were growing fast, Verus Global didn’t have the established trading history that many traditional financiers require. This was one of the major challenges in securing funding for their business growth.

“We were fresh on the scene and didn’t have that history behind us. Also, I was only 23 at the time, which did add to our risk profile,” said Jackson. “But we were growing so quickly and needed a decent amount of finance to capitalise on those opportunities”.

The company approached several different providers in their search for the right funding solution and found their experience with Octet stood out.

“Our account manager was very responsive. He took the time to build a relationship and understand our business. It didn’t just stop at us as their client – they got to know our clients and how they work with us too. So the Octet team was supportive of our peak seasons, when we needed extra funding, etc. There was a very positive energy from the beginning and it’s a big reason why we ended up partnering with them.”

Jackson Meyer, Group CEO, Verus Global

After deciding to partner with Octet, the Verus Global team went through a controlled and thorough onboarding process.

“Everything was checked from a compliance point of view,” said Jackson. “It ensured we were doing the right thing, while also being easy on our end”. He also reported that staff found the process of using the Octet Platform, uploading documents, and drawing down funds easy.

“Our partnership is an ongoing commitment, so we need to constantly be on top of our clients’ needs. There are times where we need to make some changes, so we’re continually working together to re-evaluate and adjust.”

Sam Ralton, Director Working Capital Solutions VIC, Octet

More than five times growth forecasted

Octet’s transport financing solution helped Verus Global shorten their cash flow cycle, build a stronger balance sheet, and increase their working capital. It also provided a valuable cash flow boost that helped them capture new opportunities.

Jackson sees Octet as a key partner in their future business growth, thanks to the flexibility and ease of their funding facility.

“We’ve recently expanded into the Netherlands, stabilised our key customers, and grown our business. After starting with $24 million turnover in our first year, we are now on track to do around $140 million this year. We absolutely see Octet as a long-standing partner to help make that happen.”

Jackson Meyer, Group CEO, Verus Global

Dynamic funding for optimal business growth

For businesses looking to expand their cash flow options to help manage business growth, having a flexible finance solution in place can help. Once the onboarding process is complete, you’ll have access to funds as and when you need them, with the flexibility to adjust as your business changes.

“Flexibility on both sides is the key. If you need something non-traditional, a partner like Octet can help in finding a solution that works for both your business and theirs.”

Jackson Meyer, Group CEO, Verus Global

“Putting in place a facility one day and not changing it again simply doesn’t work. When your business is growing and evolving, having a flexible finance solution that changes with it is crucial. You need to constantly re-evaluate limits, timing, payments – the whole lot – and work together with your finance provider to optimise the process.”

Sam Ralton, Director Working Capital Solutions VIC, Octet

Octet has the ongoing commitment and experience to work with your business to leverage your strategic business growth plan.

Unlock your transport and logistics business potential with Octet.

Powering business together. Discover more.

Funding for business growth: what you need to know

Posted on October 29, 2021May 20, 2024 by Duncan Khoury

For businesses experiencing rapid growth, this can be an exciting – yet challenging – time.

With increasing demand and growing revenue, you can see several opportunities ahead. To meet this new demand, you might consider expanding your workforce, automating processes and introducing new products or services.

But all this change requires investment.

The question then becomes how to best fund business growth to create consistent, sustainable progress. Options range from debt to equity to internal funds, but the best financing option for your business can vary according to your operations and ambitions.

Debt financing is typically the best choice for businesses that lack the internal funds to fuel growth when the owners want to retain control. And while banks are often the first place that businesses turn to for debt finance, they aren’t always the best fit.

So, depending on the nature of your business, alternative funding sources might offer more flexible and cost-effective financing – often acting as a supplementary facility to any bank arrangements.

How business loans work

Debt financing is money that you borrow and then pay back with interest over an agreed period of time. Also known as a business loan, debt financing is designed specifically for business purposes. It typically includes fixed amounts to cover one-off projects or purchases or a line of credit.

Business loans can vary in terms of rates, repayment terms, loan terms and the type of security required.

When most people think of business loans, they think of borrowing money from their bank. To secure a business loan from a bank, you’ll need to provide evidence that your business is sustainable and can service its debt.

Banks generally have a low appetite for risk (see below), so they can – and often do – need extensive assurance about the viability of your business. Each bank has its own lending and eligibility criteria, but you’ll usually need to provide:

information about your trading history
information about your credit history
financial statements, including balance sheets and profit and loss statements.

Depending on the nature of your business, you may also need to provide additional information such as a business plan, contractual agreements or cash flow projections.

It’s not surprising that banks are often the first port of call for business lending. As an existing customer of your bank, taking out a loan can seem like a natural extension of your business banking relationship. That’s probably why banks have traditionally been the primary source of funding for businesses.

But for businesses in a growth phase, borrowing from banks can be challenging.

Core challenges with business bank lending

While banks are often the go-to business funding choice, their loans generally come with added complexities, including:

Strict lending criteria

Thanks to operating in a highly regulated environment and being answerable to shareholders, banks tend to have a low appetite for risk. This generally means they take a more conservative approach to lending.

Complex paperwork

Paperwork goes hand-in-hand with strict lending criteria. Businesses often need to submit evidence from across several areas of their operations, which the bank will then assess as part of the approval process.

Long lead times

With strict criteria and complex paperwork requirements comes longer lead times. These lead times can occur not just during the application process, but also throughout the life of the facility. Some business bank transfer times can be as long as several days, resulting in delayed payments to suppliers.

High transaction costs

Bank service charges for businesses can be high, and add up over time. If your business has a high volume of transactions and you deal in exporting and/or importing, these fees can impact your profitability.

For businesses looking to grow, these challenges can have serious implications. Strict criteria and complex paperwork requirements can be difficult to meet for businesses on a fast growth trajectory or with very little stock on hand.

And even if a business meets the bank’s eligibility criteria, long lead times can cause them to miss opportunities, holding them back. Funding is a key ingredient for growth, so it’s critical for businesses to have the financing they need to support growth initiatives.

Beyond banks: other sources of finance available to a business

If you’re wondering what the best financing options for your business outside of (or in addition to) the big banks might be, consider our list of alternative debt finance options below:

Debtor finance

Debtor finance allows a business to borrow based on one of its biggest assets: its accounts receivable.

A debtor finance facility can help to bridge cash flow gaps by providing access to funds that are owed to your business when you need them. Rather than charging interest on a fixed loan amount, the finance provider instead charges a percentage of the amount owed in exchange for offering fast access to cash.

This can be a good option for businesses that don’t have the physical assets to offer as security to banks. They may have maxed out their property equity or have a business model that doesn’t require holding physical assets, such as eCommerce.

Trade finance

Trade finance is a type of funding that provides you with a convenient, revolving line of credit. Facilitated by a third party, it means you are able to pay suppliers instantly and enjoy flexible repayment terms. While it’s often used to streamline international trade, it can also help you strengthen relationships with local suppliers who may have short payment terms or require full payment upfront.

And much like with debtor finance, it doesn’t require businesses to provide physical assets as security.

Supply chain finance

Supply chain finance is a hybrid form of funding that covers both debtor and trade finance. It provides off-balance-sheet financing that helps to strengthen a company’s balance sheet while improving its cash flow management at the same time.

A supply chain finance solution links suppliers and buyers in the one process. If you’re a buyer, it enables you to settle a supplier’s invoice immediately and perhaps take advantage of early payment discounts. Then, you can repay the invoice amount at a later date, which can strengthen your supplier relationships without interfering with your ability to take out other loans.

Flexible business finance alternatives

Most companies need some form of finance to power their business growth. While banks can be a valuable source of funding for some growing businesses, alternative options often help to accelerate their growth.

At Octet, we offer a range of flexible business finance alternatives including:

Debtor finance: Get up to 85% of your invoices paid now to boost cash flow, without needing to provide personal asset security.
Trade finance: Increases your purchasing power with a competitive, convenient line of credit – with up to 60 days’ interest free and 120 day repayment terms.
Supply Chain Accelerate: Optimises your working capital with an off-balance-sheet source of funding.

If you’re ready to power your business growth, and receive more flexibility than the banks, get in touch with the team to find out how we can help.

Ripe for growth: flexible finance fuels online retailer

Posted on August 18, 2021May 20, 2024 by Duncan Khoury

Disruption leads to opportunity for Vinomofo

Vinomofo is an online wine retailer with a network of over 500,000 customers across Australia and Singapore. Known for their fun brand and impressive deals, Vinomofo is firmly focused on offering good quality wine to their loyal customer base.

Established in 2011 from the garage of Vinomofo’s wine-loving founders, the business has organically funded its growth without any debt. Following an unexpected turn of events, the group faced a unique opportunity to grow their business. By seeking finance for the first time, Vinomofo could move fast, capture opportunities and create a real competitive advantage.

Years of growth compressed

In 2020, the COVID-19 pandemic and lockdowns saw an accelerated shift to buying online, particularly for wine. Growth that was forecast to take years occurred in just a few months, with online retailers needing to act fast.

At the same time, the wine industry was going through significant disruption on the supply side from China. Tariffs as high as 250% were introduced so wineries and wine producers were quick to pivot to alternative sales channels within Australia.

“When COVID hit, we saw rapid growth in a very short amount of time. At the same time, new tariffs from China saw high-quality wine become available back in the Australian market at short notice. We had to find a way to make the most of this opportunity.”

Kieran Donovan, CFO, Vinomofo

Vinomofo were poised to take advantage of this unique growth opportunity, but their hands were tied as they’d never previously had external finance. During this time, Vinomofo began looking for a solution to help.

Flexible finance to move quickly

Vinomofo had no issues with cash flow. But the business needed finance to make purchases outside of forecasted activity, and take advantage of the competitive deals on offer.

The challenge for the team lay in the way their business was structured. With most assets tied up in stock and no other significant assets (e.g. property or warehousing) to lend against, traditional lenders weren’t able to offer the right finance to suit their unique needs.

“Because we were capital-light, we didn’t quite fit the criteria of traditional lenders. We needed a flexible solution from a provider that understood our business model and could see the opportunity.”

Kieran Donovan, CFO, Vinomofo

Vinomofo were introduced to Octet via a commercial broker after discussing their working capital requirements. These included:

flexible finance
funding speed to market
interest-free periods
competitive pricing
ability to meet key Christmas season deadline
smooth onboarding

Octet assessed their business and was pleased to offer Vinomofo a trade finance facility that met all their needs, to the value of $2 million dollars.

Securing a competitive advantage

For Vinomofo, the trade finance facility has allowed them to do exactly what they intended. It’s also introduced a new growth tool for their business.

“We’ve been able to secure a real competitive advantage by negotiating good deals, moving faster than our competitors and securing exclusive offerings. It’s been a great tool to help expand and grow our business.”

Kieran Donovan, CFO, Vinomofo

“Flexible working capital finance can be a powerful tool, even for successful, financially healthy businesses. When unexpected opportunities arise, it can help them capture competitive deals and be a real win for their business.”

Tony Ahdore, Director of Working Capital Solutions – VIC, TAS, SA, Octet

What does the future hold?

Lockdowns are still very much part of the Australian (and global) business landscape – and tariffs from China are set to stay for at least a few more years. Vinomofo are proud to be in a position to match the consumer demand with exceptional Australian wine that may otherwise have been exported. Vinomofo may also look to grow their current facility. By having flexible working capital finance and a healthy balance sheet behind them, the Vinomofo team feels prepared to power its growth into the future.

Words of advice

If your business is experiencing rapid growth or you want to capture new opportunities, we can help. And if you’re not sure where to start, we can point you in the right direction. We work with successful Australian businesses facing these same growth challenges every day, and can help you prepare.

“If you’ve never taken on debt to fund working capital before, or have the kind of balance sheet or business model that traditional lenders tend to shy away from, you still have options. We understand that every business has a structure that works best for them. We are open to working with, and understand, different business models.”

Allan Howe, Director of Working Capital Solutions – QLD, Octet

Unlock your business potential with Octet.

Powering business together. Discover more.

TAS pet supplier group – riding the boom

Posted on June 28, 2021May 20, 2024 by Duncan Khoury

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.

In a booming sector and looking for trade finance to help support your growth?

Talk to us today

VIC online retailer – ripe for growth

Posted on May 28, 2021May 20, 2024 by Duncan Khoury

The Scenario

Established in 2011 by passionate wine-loving founders, this online wine retailer has built a network of over 500,000 customers globally – ranking second in its category in Australia. With a unique voice and fun-focused brand, the business brings together like-minded wine-lovers worldwide.

COVID-19 turbocharged the business as consumer trends changed favourably over a very short time. The management team saw these changes as an opportunity to not only increase revenue, but also to initiate cost savings and improve profits, strengthening the business’s position.

The team’s next step was to secure a robust working capital solution to help fund future growth.

The Solution

The business sought finance to help fund growth through two key avenues. One involved creating favourable payment terms with key suppliers, and the other would capture new opportunities via innovative product offerings.

Octet recognised both the business opportunities and the ideal model and industry in which the retailer operated. The company had a healthy financial position with no debt facilities and a loyal customer base. It also used best-in-class warehouse management systems to effectively manage stock levels. Lastly, the management team understood the importance of strong supplier relationships, and actively looked for ways to strengthen them.

As a result, Octet recommended an initial Trade Finance facility of $2M to help increase the retailer’s purchasing power and build on its growth. With a flexible line of credit, the business was able to negotiate improved payable days and terms with key suppliers overseas, which directly led to improved profit margins. The trade finance facility also allowed the business to offer a broader range of products that not only aligned with customer demand, but also came with healthy profit margins.

Octet’s Trade Finance facility gave the business the freedom to capture different opportunities and build on the growth from the unexpected demand created in 2020.

Are you an online retailer looking to capitalise on growth opportunities in the current climate?

Talk to us today

VIC trade signage company – printing their own roadmap

Posted on May 14, 2021May 20, 2024 by Duncan Khoury

The Scenario

This Victoria-based trade signage group specialises in trade signage printing services and printing supply and equipment distribution. The group is a leading distributor of high-quality signage, printers and printing products in Australia and New Zealand, with a fast growing and energetic team.

In a period of rapid expansion, and with a forecasted annual turnover of $12.5m, the business originally approached Octet for a Debtor Finance facility. At the time, they were going through an extensive cost-cutting process to reduce outgoings and streamline their staffing and procurement processes.

The Solution

As part of a thorough assessment, Octet reviewed the creditors and debtors ledgers, and found that both were well spread.

This meant Octet could offer to fund the existing debtors ledger, along with new invoices going forward, under a flexible Debtor Finance facility of up to $1.75M spread across the group.

This facility, together with a robust Trade Finance facility of $350K, helped to create more cash flow and free up working capital. With overheads reduced, flexible lines of credit established and new access to invoiced funds, the company is set to well exceed their forecasted profit over the next financial year.

Looking to free up your working capital?

Talk to us today

QLD transport company – Clearing the road for success

Posted on April 12, 2021May 20, 2024 by Duncan Khoury

The Scenario

Established in 2004, this Brisbane-based transport company with 1,600 employees is expanding its horizons. The business now includes a range of subsidiary companies, all servicing areas of freight, transport, civil maintenance and traffic management.

A recent period of restructuring saw the need for quick access to cash flow to ensure the organisation’s growth could continue unrestricted.

As an unlisted public business in a turnaround phase, they relied on sophisticated investors to give them long-term support, together with NAB.

The Solution

Based on financial consultant advice, the company approached Octet to explore a cash flow solution. Due to the business’s established, 15-year successful trading record, Octet seized the opportunity to assist with a tailored $10m Debtor Finance facility limit and smaller $75k Trade Finance facility.

This much-needed cash injection helped the company to reduce debt and stabilised its business operations. As a result, they are now in a better position to capitalise on opportunities they would have otherwise missed out on. The Debtor Finance facility has cleared the road for growth and success, putting the company back on track to reach its targeted annual turnover.

Looking for Debtor Financing for your transport business?

Talk to us today

NSW packaging business – supporting sustainable growth

Posted on April 9, 2021May 20, 2024 by Duncan Khoury

The Scenario

This family owned packaging business has been operating in NSW for 21 years.

From humble beginnings, to building significant expertise and operations expanding from Australia to the US, Hong Kong and China, this innovative business has become a leading global brand for sustainable packaging products, whilst offering end-to-end solutions that have set new industry benchmarks.

The company was introduced to Octet by our strategic partner, Western Union Business Solutions, who currently utilise their services for foreign exchange risk management.

Having achieved a 20% increase in annual revenue, an opportunity arose to procure increased levels of raw materials from suppliers overseas. The additional funds would assist in supporting sustainable growth, with suppliers secure in the knowledge they would receive guaranteed payment in a timely manner

The Solution

To assess the company’s situation and recommend the best solution, Octet reviewed the relevant financial information and was able to provide an indicative funding proposal within 24 hours.

Octet ultimately delivered an unsecured $1M trade finance facility to supplement existing funding arrangements. Importantly, no property security or registered General Security Agreement (GSA) was required.

This solution enabled the business to transact with verified overseas suppliers via a revolving line of credit, benefitting from up to 60 days interest free and 120 days repayment terms. Western Union Business Solutions also allowed the company to utilise their existing foreign exchange contracts, whilst taking advantage of locked in rates.

With 2021 performance continuing on a strong trajectory, the business has been able to expand its operations further confident in the knowledge that they can manage increased orders through the availability of their Octet funding.

In the packaging industry and looking for flexible Trade Finance?

Talk to us today

Western Union Business Solutions is a business unit of The Western Union Company. Services in Australia are provided by Western Union Business Solutions (Australia) Pty Limited ABN 24 150 129 749 and AFSL 404092 (WUBS). WUBS is the issuer of FX contracts referred to above. A Product Disclosure Statement is available for each of the financial products that WUBS issues and can be obtained by visiting our website: www.business.westernunion.com/en-au/compliance-legal. Before you decide to acquire a financial product from WUBS you should read the relevant Product Disclosure Statement. WUBS has entered into a referral arrangement with Octet and receives referral fees for referred clients who transact with Octet.

Octet on 6PR’s Perth Live with Oliver Peterson

Posted on October 26, 2020May 20, 2024 by Duncan Khoury

With cash flow absolutely top of mind for Aussie SMEs in the current turbulent economic conditions, it was a fantastic opportunity for our Director of Working Capital Solutions, WA, Nigel Thayer to speak with Oliver Peterson on 6PR’s Perth Live program. Listen to the full interview here.

Methods that worked well for fast-growing businesses in 2019 may not be having the same impact in the current climate, and Nigel covered some top cash flow management tips, including:
– creating a short-term cash runway
– increasing internal and external stakeholder communication
– identifying alternative sales channels; and of course
– accelerating your access to outstanding cash via intelligent working capital solutions!

Disclaimer: This article and any associated content 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.

Octet & G&H Financial – SME working capital masterclass (Ep’s 1 & 2)

Posted on September 27, 2020May 20, 2024 by Duncan Khoury

In this educational series, leading finance brokers, G&H Financial meet with innovative working capital financier, Octet to discuss some of the most important issues facing SMEs today.

This first instalment delves into the important topic of Trade Finance, and how technology is helping to shift the landscape for the benefit of SMEs and their local and international suppliers.

The second instalment in the SME Working Capital Series sees G&H’s Sean McHugh and Octet’s Dan Verdon discuss Debtor Finance solutions for SMEs.

In a nutshell, Debtor (or Invoice) Finance provides businesses with advance access to what is often their biggest asset – unpaid invoices or debtor’s ledger.

Check out the full video below.

VIC manufacturing/construction company – building a strong future

Posted on May 11, 2020May 20, 2024 by Duncan Khoury

The Scenario

This unique company sources specific store fittings from overseas for a major supermarket chain in Australia. They provide items like trolleys, baskets, shelving, wall panelling and ceiling tiles for both new builds and refurbishments across the country.

The business was well positioned to expand their offering to offshore markets, but needed external funding to help them take advantage of the opportunity.

The Solution

The company’s accountant approached Octet looking for a business finance solution to suit their unique needs. Octet worked closely with the client to understand their underlying business drivers, their working capital cycle and cash flow forecasting to assess the most appropriate funding model for their business.

Octet provided a $2.5 million Trade Finance solution, based on the business’s current strong financials and continued viable growth forecasts. Another major factor was the client’s solid relationship with a well-established, global supermarket, and their plans for international expansion.

Octet’s working capital solution allows the company to fund their new international contract. The business intends to expand in a series of stages, using Octet’s Trade Finance to fund part of each stage, while self-funding the balance. The extra funding will cover the company’s need for higher working capital, while also providing greater security as more debtors come onboard. The client’s facility limit will likely increase with continued growth, providing them with the flexibility to power their business into the future.

Looking for manufacturing business finance?

Talk to us today

How does Trade Finance work?

Posted on April 14, 2020May 20, 2024 by Duncan Khoury

Traditionally, Australia is both a strong importer and exporter. According to DFAT, our 2018-19 exports were worth AUD 470.2 billion, while our imports were worth AUD 421.4 billion.

For any business that trades, cash flow can be a major stumbling block. Trade finance can help to plug the gap by immediately funding a transaction so the supply chain can continue uninterrupted.

Even in the current uncertain times, trade finance can help to shore up businesses that are feeling the strain – or provide them with funding for new opportunities.

But how does trade finance work? Let’s examine it in more detail.

What is trade finance?

Trade finance is a business ‘line of credit’ funding facility that’s ideal if you buy from (or sell to) other businesses, whether they’re overseas or local. As a buyer, it lets you pay your supplier immediately, then pay back the credit facility over time. As a seller, it simply allows you to get paid quicker.

Let’s face it – if you’re importing or even buying locally, you don’t want all your available cash tied up in paying for goods that can take weeks to arrive. You can’t even begin to make your money back until you have the items in stock and start selling them. So if you have to pay out a large sum upfront, how do you smooth over that cash flow gap?

Meanwhile, as an exporter, you need to get paid as soon as possible to keep your own cash flow healthy. The longer it takes between sending the goods and receiving payment, the longer your working capital is tied up in the transaction.

That’s where trade finance funding can help.

Trade finance works by introducing a third party financier into your transaction. This financier puts up the money to pay the supplier, then lets the buyer (your business) repay it with extended credit terms.

This gives you working capital to keep your business running while the goods are in transit.

Other advantages of using a trade finance facility

While plugging the cash flow gap is a major reason that many businesses decide to use trade finance, it also has other advantages.

Reduce global trading risks

International trade transactions carry a lot of risk, and have few (sometimes no) safeguards. If you import goods, you can never be guaranteed that those goods will actually be delivered. If you export, you risk not being paid for your products.

Using an intelligent trade finance solution as part of your supply chain can make it easier and safer for you to trade.

Both parties to a transaction have to sign up for the facility and be verified before it can go ahead. Having the financier check both parties to make sure they’re legitimate first, helps to significantly reduce these global trading risks.

Reduce currency fluctuation risks

Another inherent risk in any international transaction is constantly shifting exchange rates. If the rate between the Australian dollar and your supplier’s currency changes dramatically overnight, you could find yourself suddenly owing a lot more than you’d budgeted.

Trade finance can guard against these currency fluctuations by setting the exchange rate for the transaction upfront.

Save money on early payments

If you’re importing, having cash immediately available lets you take advantage of any early settlement discounts your supplier is offering. That saves you money on your goods and services, and allows you to pay the money back over a longer time frame to your financier.

Octet’s Trade Finance: close the cash flow gap

Octet’s Trade Finance facility gives you the power to bridge the cash flow gap. To be eligible, your business will generally need to:

turn over at least AUD 3 million
have been trading profitably for at least two of the last three financial reporting periods
have a positive balance sheet net worth.

The amount of funding you can access depends on your business. We’ll look at your most recent financials and management accounts to calculate a limit based on your business’s tangible net worth, including factors like:

your equity
your cash position
how profitable your business is.

Advantages of our Trade Finance facility

Close your working capital gap. We offer up to 120-day payment terms, so you can pay your suppliers immediately, then pay us back over time.
Unsecured. Our non-bank trade finance is completely unsecured. We don’t use your real estate or personal assets as security to offer you finance.
Quick turnaround. You’ll get an answer to your finance application within days – not months. That’s much faster than with traditional options.
Flexibility. You can use our finance either as your main funding facility, or to supplement traditional financing. So if you want to diversify or your bank isn’t servicing your needs sufficiently, you can use Trade Finance as top-up funding.
Easy international trading. Our Trade Finance facility makes it easy to pay suppliers in over 68 countries in a choice of 15 global currencies.
Secure platform and trading. We verify all members in our system to give you confidence that your trading partner is legitimate. And our information systems use best-in-class firewalls, encryption, hardware and procedures to keep your data secure.

How does Trade Finance work?

Our Trade Finance facility has a simple workflow.

Submit your application. Apply online, and if you’re successful, we’ll approve you and give you a facility limit.
Invite a trading partner. Add your domestic and international suppliers to the Octet platform. You don’t have to add all your suppliers to the system – just the ones you want to use the facility for. We’ll then ask them to enter their details so we can verify them.
Place your order. Add your order to the platform. Our system will notify your supplier so they can accept the order. You can upload any documents needed for the transaction – such as the purchase order, invoice and bill of lading – through the system.
Authorise payment. Once the transaction is complete, you authorise the order and choose which funding methods you want to use to pay. This might be our Trade Finance facility, a credit card or a bank facility – or you could split the payment across multiple methods.

It’s that simple and safe. Our closed-loop system ensures the upload of all necessary documents, such as the bill of lading, before the order can be approved. That means you can be assured the transaction is valid before you pay.

How Octet’s Trade Finance can grow your business

Our Trade Finance facility helps you to smooth out the cash flow curves in your business.

For example, let’s say your business makes sunscreen. As a seasonal business, you know you’ll need to order a lot of stock as the warmer months approach. Having your own Trade Finance facility helps to reduce the cash flow pressure that you know will build at that time.

Plus, in uncertain business climates, many businesses are under strain and need cash flow to survive day-to-day. Octet’s Trade Finance solution can help to plug the cash flow gap that results from a market slowdown.

Of course, regardless of the climate, other businesses may be flourishing and need extra cash to take advantage of opportunities for growth. In these cases, Trade Finance funding can provide a cash flow injection to help deal with demand.

Power to fund your business

No matter whether you need help to ride out the storm or fund exciting growth opportunities, Trade Finance will help your business power through.

Find out more about our Trade Finance facility or talk to us to find the best solution for your business.

VIC manufacturing company – stacking up the wins

Posted on April 14, 2020May 20, 2024 by Duncan Khoury

The Scenario

This family-owned company began in 2003, and now manufacture timber and plastic pallets, along with plastic and produce bins, for export and domestic customers. The business group consists of both the manufacturing facilities and a sawmill to ensure their supplies.

Although the company had finance in place with a local bank, they wanted more flexibility. Their ideal solution involved splitting their funding across their existing bank facility and more innovative supply chain funding.

The Solution

The company’s financial adviser approached Octet to discuss a solution that would support the business group’s growth objectives.

Octet approved a combination of working capital facilities to suit the client’s needs, implementing a $3 million Debtor Finance facility, as well as an initial $300,000 Trade Finance facility. This decision was based on the business’ solid profits over the past three years and strong forecast revenues. Octet will review the Trade Finance limit once the company’s final FY19 financials are available.

This combination of supply chain funding lines is an excellent example of how a business can increase their working capital to pursue growth opportunities for a bright future.

Could your business benefit from a more innovative supply chain finance solution like this manufacturing business?

Talk to us today

QLD mining company – providing the raw materials for growth

Posted on April 14, 2020May 20, 2024 by Duncan Khoury

The Scenario

Established in 2007, this family-owned raw materials business specialises in providing various graded aggregates and gravels to mines and councils. They also have sand mining rights, and a concrete batch plant that supplies concrete to a variety of clients.

The business had an existing finance facility with another financier, but wanted both better terms and to increase their working capital funding for anticipated future growth.

The Solution

The company’s financial broker approached Octet to ask about a solution that would meet their needs.

Octet approved a combination of a $7 million Debtor Finance facility and a $75,000 Trade Finance solution for the client, basing the approval on the business being well-established with a reasonably strong net worth. Additionally, it had enjoyed significant, stable growth over the past three years.

The client currently expects strong growth in the coming 12 months, due to acquiring an additional quarry. Octet’s combination of supply chain funding lines will give them the working capital they need to power their growing business.

Looking for finance options for your mining business?

Talk to us today

Working Capital Solutions

Trade Finance

Debtor Finance

Supply Chain Accelerate

OctetPay

Industries

Why Octet

Digital wallet

Global network

Cross-border payments

Supply chain management

Security

Rewards

Restrictive bank facilities hindered growth

Expansion without boundaries

A thriving new venture acquired

Plans for future growth

Seize opportunities as they arise

Build a fast and flexible partnership with Octet

What is business growth?

How to promote business growth

Why fast-growing businesses partner with Octet

Giving you the power to grow

Why you need business finance

New challenges in business finance

Traditional methods of financing a business

Business Financing Method #1 — Internal Funds

Business Financing Method #2 — Debt Finance

Business Financing Method #3 — Equity Finance

Alternative, flexible business capital solutions from Octet

Business Financing Method #4 — Debtor Finance

Business Financing Method #5 — Trade Finance

Business Financing Method #6 — Supply Chain Accelerate

Power your business with Octet’s supply chain finance options

Why you need to choose carefully

What to consider before making a decision

Speed and reliability

Cost-effectiveness

Security

What options are available?

Bank transfer

PayPal or credit card

Non-bank FX transfers

Trade finance

Find out more

A fresh start with new challenges

High growth, short trading history = limited cash flow funding options

More than five times growth forecasted

Dynamic funding for optimal business growth

Unlock your transport and logistics business potential with Octet.

How business loans work

Core challenges with business bank lending

Strict lending criteria

Complex paperwork

Long lead times

High transaction costs

Beyond banks: other sources of finance available to a business

Debtor finance

Trade finance

Supply chain finance

Flexible business finance alternatives

Disruption leads to opportunity for Vinomofo

Years of growth compressed

Flexible finance to move quickly

Securing a competitive advantage

What does the future hold?

Words of advice

The Scenario

The Solution

Looking for manufacturing business finance?

What is trade finance?

Other advantages of using a trade finance facility

Octet’s Trade Finance: close the cash flow gap

Advantages of our Trade Finance facility

How does Trade Finance work?

How Octet’s Trade Finance can grow your business

Power to fund your business

The Scenario

The Solution

Could your business benefit from a more innovative supply chain finance solution like this manufacturing business?