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 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.