Running a growing business takes more than determination – it often requires smart, well-structured finance. But knowing how to fund business growth can be daunting, with so many products, lenders, and differing eligibility criteria to navigate.
That’s where a commercial finance broker can make all the difference. We spoke with Sonja Pfitz, Director of Pfitz Financial & Business Solutions and one of Octet’s trusted referral partners. With over 30 years’ experience, Sonja has helped countless SMEs secure the right business funding to achieve their goals.
In this Q&A, Sonja shares her expert insights for SMEs on navigating business finance, from choosing the right broker to funding solutions that support sustainable growth.
How do you assess a business before recommending financing?
Sonja: The first thing I do is a deep dive into their business – understanding their structure, what they do, how long they’ve been trading, what funding they already have, and what their needs are both current and into the future.
Are they purchasing an asset, filling a cash flow gap to pay suppliers, covering a tax bill, taking on new credit term clients or relocating? Maybe even just consolidating their position. Once I understand their journey and needs, I pull their financial data to assess things holistically.
From there, I can identify the right lending structure, shortlist lenders, and prepare a briefing to get proposals. This ensures the client and I are on the same page, we’re not just guessing – which unfortunately some inexperienced brokers do.
Sonja Pfitz shares more expert tips on choosing the right lender and securing business finance
How do you choose the right business funding option?
Sonja: It depends on the need. Asset finance is straightforward – you’re buying equipment or vehicles. Working capital solutions like invoice finance (also known as debtor finance) and trade finance are more complex but powerful if used correctly.
Invoice finance works for B2B businesses with strong customers because it’s repaid as invoices are paid – it’s a “self-liquidating” facility. Trade finance sits at the other end, covering supplier payments (local or overseas) and giving up to 120 days to repay, which balances cash flow.
Both products integrate seamlessly for the right industries, but they don’t suit everyone – It is essential to evaluate the viability of these facilities and determine if the client’s financial position aligns with the lender’s underwriting standards.
What makes a good business finance lender?
Sonja: Each lender has its own credit criteria, appetite and flex points; so matching the right lender to the right business is critical. It’s up to an experienced broker to know those differences and match the right lender to the right client.
It also comes down to relationships. A good broker knows which lenders and their Business Development Directors will suit a client, not just based on products but also personality and industry fit. For example, if I know Octet has a client manager who understands a client’s industry, that makes onboarding so much smoother.
Octet is great at this. Their Business Development Directors & Client Managers are highly experienced across different industries and their staff base is stable, so clients aren’t shuffled from person to person. That consistent communication between lender, broker, and client makes a big difference.
What are some common cash flow challenges SMEs come to you with?
Sonja: The most common funding need and often an SME’s biggest challenge is ATO payments, largely due to the cash vs accrual tax system. On accrual, you pay tax when you issue an invoice – even if you haven’t been paid yet – which can really hurt cash flow.
PAYG and superannuation are also big burdens, especially with recent super increases.
Secondly, ensuring supplier payment gaps are constantly maintained within terms. In some industries, you might wait 60–90 days for customers to pay, but in the current environment, suppliers won’t wait that long. This working capital gap is where financing often steps in.
How can SMEs use flexible finance to fund growth sustainably?
Sonja: I always say you need a good “village” around you: a skilled accountant, a good lawyer, and an experienced commercial finance broker.
As a business grows, your advisors need to grow with you. The expertise required becomes more specialised, with tax planning, forecasting, and strategy coming into play.
Cash flow forecasting is essential. It shows whether taking on finance will truly benefit the business and if repayments are sustainable. For example, if you want $1M in working capital to buy stock, we need to see that it will generate real sales with healthy margins. Otherwise, you’re just adding pressure.
How should a business finance broker support you long-term?
Sonja: I only work with lenders who keep me in the loop, because ultimately the client is my client. I do regular reviews with them, so if something’s going off track, I want to work with the lender to address it early.
Octet does this very well. They see it as a three-way relationship: client, broker, and lender. If a client is growing and nearing their facility limit, their Business Development Director will often call me so we can review and increase it before it becomes an issue. A good lender communicates with both the client and broker so we can stay ahead of problems and support growth together.
What’s your top advice for businesses seeking financing for the first time?
Sonja: Make sure you have a commercial finance broker who’s experienced and communicates regularly. Don’t use a mortgage broker – they’re very different. Commercial brokers also need to understand asset finance, working capital, short-term loans, and construction finance because clients usually have multiple needs.
You also need your financial statements in order. Make sure they are up to date and reconciled before you talk to a broker, otherwise you’re wasting everyone’s time.
And be prepared to sit down with your broker. The more time you spend, the better they can understand your business and secure the right funding.
Grow your business or join our broker network
Octet empowers businesses across a range of industries with flexible working capital solutions designed to fuel growth.
Whether you’re a business owner looking for smarter funding or a broker wanting to partner with a trusted lender, our team of specialists can help.
Speak to our working capital specialists today to see how we can power your business – or if you’re a commercial finance broker, join Octet’s Referral Partner Program and help your clients grow.
Disclaimer: Please note, this interview has been edited for length and clarity. 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.
