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VIC civil construction company – smoothing out the seasonal cash flow cycle 

Case StudyClient stories By Duncan Khoury – 01 March 2020

The Scenario

Established in 1975, this family-owned company provides a full range of civil construction skills, and carries out projects throughout Victoria. They originally had a receivables facility in place with another finance group, but were looking for an alternative provider. They were seeking a more holistic funding solution with greater funding at better rates to help them better manage their cash flow cycle.  

The Solution

The company’s financial adviser approached Octet to ask about solutions that would meet their client’s needs. Because the company was mature and had growth potential, Octet could offer a mix of business capital solutions that covered the required funding.

Among the solution mix was an invoice discounting Debtor Finance facility of up to $1.4m, which covered invoices that the company’s previous provider couldn’t. The business initially used this to pay off their significant ATO arrears.  

The company’s invoices included a mix of ‘do and charge’ and progress invoicing. Going forward, the business will fund their debtor’s ledger and new invoices using Octet’s Debtor Finance for ‘do and charge’ invoices, and using Supply Chain Accelerate for the progress invoicing. Finally, they will access a more robust, consistent business credit line using Octet’s Trade Finance facility.

The business is now in a prime position to seek improved trading terms with suppliers, better cope with seasonal revenue fluctuations, and fund existing and future growth opportunities.

Could your business benefit from a funding mix like this? 

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