Established in 1993, the company has two income streams within the cleaning product sector. Their original mode of income was the Australia-wide wholesale of toiletries, cleaning products and packaging to the hospitality and food industries.
The director quickly realised there was a hole in the market for bottles to hold the cleaning products. In 2004 they purchased their first robotic blow moulding machine and began manufacturing bottles. Today the business has 60 machines for moulding bottles, containers and tops.
Revenues in the injection moulding business continue to grow solidly, meaning their suppliers’ trade terms need to be closely adhered to, particularly within the plastics sector. This presented a need for consistent and verifiable cashflow to satisfy requirements of suppliers.
The client’s finance introducer (a long-standing partner with Octet) sought a trade finance facility to support the company’s growth and ensure that suppliers were paid on time. As a result, this would maximise the business’ preferential supply status.
A $2.5M Trade Finance facility was provided, with Octet agreeing to a unique security structure through Octets Business Transaction Facility. This made Octet rank as second general security deed behind other lenders with an inferior trade offering. This meant that the finance received from Octet would not disturb the company’s existing credit lines.
Following a positive outcome for both the business and their suppliers, Octet’s new partner is now clear to continue their success well into the future.