Debtor Finance Archives

Black Friday to Boxing Day 2025: Preparing your business for the busiest time of year

Posted on November 4, 2025November 13, 2025 by Russell Walsh

What you need to know:

Australia’s peak sales period, from Black Friday to Boxing Day 2025, is forecast to generate $69.7 billion in retail sales, up 2.7% on last year.
Consumer behaviour, interest rates, tariffs and supply chain variability are creating new risks for inventory and margins.
The next two weeks are critical: businesses should lock in stock, confirm logistics, align teams and secure supplier capacity to meet demand.
Flexible working capital can help fund larger orders without compromising cash flow.

Australia’s peak sales window from Black Friday through to Boxing Day represents billions in revenue.

The six-week lead up to Christmas is expected to generate a $69.7 billion boost in retail sales – a 2.7% increase on last year’s numbers. But changes over the past year mean the coming weeks are critical to the success of businesses that depend on this season’s retail sales.

From supply chain concerns to interest rate uncertainty, this guide outlines practical steps businesses should take to prepare for the holiday season with confidence.

Top 4 considerations for Australian businesses in 2025

From shifting consumer behaviour and cost pressures to tariffs and logistical uncertainty, these four forces will shape how you plan, procure and fulfil this peak season.

Consumer behaviour

Australians are shopping earlier and hunting harder for value, concentrating on discount events such as Black Friday. In recent years, what was traditionally a United States-only sales day has become one of the biggest sales periods of the year in Australia and around the world; consumer spending between Black Friday through to ‘Cyber Monday’ is expected to reach $6.7 billion over four days, a 5.5% increase from 2024.

Interest rates

Despite an expected spending increase during Black Friday, retailers are concerned that the Reserve Bank of Australia’s (RBA) decision to keep the cash rate at 3.6% will negatively impact consumer spending. This balance between consumer confidence and discretionary spend will make retailers’ inventory decisions subject to more risk.

Tariffs

Shifts in tariffs and landed costs since last year are altering margins on imported goods, especially in apparel, homewares and electronics. Companies will need to review their pricing and supply chains to ensure they stay competitive. Australian exports have also been affected by US tariffs following the removal of the de minimis exemption; a long-standing import concession used by retailers which allowed low-value goods to enter the US duty-free.

Supply chain management

Meanwhile, lead times and freight capacity have improved in some areas but remain variable. This means ‘order by’ date discipline is essential. Australia Post has issued 2025 Christmas lodgement guidance to help businesses set customer cut‑offs.

Peak season readiness: 6 priorities for retailers this peak season

The following are peak-season considerations for the next fortnight; prioritise based on your channels, margins and operational constraints.

1. Ordering and supply

Forecast by SKU and channel for Black Friday and the first two December weekends; stress-test conservative, base and upside scenarios.
Bring forward POs on bestsellers; confirm supplier capacity and lead times, and line up backup suppliers or substitutions for constrained SKUs.
Lock logistics: reserve carrier capacity and shipping windows; set re-route contingencies and publish ‘order by’ dates aligned to the Australia Post Christmas cut-off.

2. Operations

Enable click-and-collect and ship-from-store where relevant; define store-to-store transfer rules to rescue near-miss orders.

Align rosters to demand peaks and cross-train teams; run daily stand-ups to rebalance inventory across channels and stores.

3. Customer service and communications

Prepare proactive comms (order status, delays, alternatives) and refresh FAQs/returns; offer clear SLAs across email, chat and social media channels.
Set contingency messaging for weather or carrier disruptions; give realistic ETAs and alternatives to protect trust.

4. Digital and security

Ensure a fast, mobile-first site; validate Google Merchant Center feeds; review security processes

5. Packaging and delivery accuracy

Confirm packaging supply for peak period; implement automated address validation to reduce failed deliveries, re-ships and support load.

6. Finance and working capital

Activate or increase working capital facilities to fund earlier/larger buys and freight; onboard priority suppliers to supply chain finance to secure capacity while preserving terms and matching repayments to the sales cycle.

Why a solid working capital strategy is key to ensuring readiness

The next two weeks will define your availability, margins and customer experience through to Boxing Day.

Locking in supply, tuning logistics, staging promotions carefully and ensuring your team and systems are ready will separate strong performers from those caught short. And when larger, earlier inventory commitments strain cash flow, the right working capital structure turns constraint into competitive advantage.

Trade Finance ensures smooth import transactions by funding inventory and service purchases upfront, reducing cash flow strain during critical trade activities. Supply Chain Accelerate pays suppliers early to win production priority and better terms while maintaining your days payable outstanding (DPO), improving reliability and smoothing cash conversion.

Prepare now for peak performance

Whether you’re managing seasonal spikes, opening new channels or diversifying suppliers, peak season demands careful preparation. Leveraging working capital solutions will give you the cash flow flexibility to move quickly without tying up working capital or requiring property security.

Find out more about our Trade Finance and Debtor Finance facilities and if they are right for your business, or talk to us to find the best solution for your business needs.

Disclaimer: 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.

How to get the best business loan: 5 ways to secure smart business financing

Posted on October 31, 2025 by Russell Walsh

Summary:

Securing the best business loan is vital for SMEs to manage cash flow and fund growth.
SMEs that prepare strong financials and clear forecasts can negotiate better terms.
Working with finance brokers and exploring non-bank lenders expands funding options.
Building trusted lender relationships helps businesses access flexible, long-term finance.

After a turbulent few years of rate hikes and easing, Australia’s small and medium enterprises (SMEs) are once again adjusting to a cautious Reserve Bank of Australia (RBA) – though for how long is anyone’s guess.

Following a series of rate cuts earlier in 2025, the RBA has held the cash rate steady at 3.60% since August. Borrowing costs remain elevated, and are likely to stay that way for some time. For businesses seeking finance to manage cash flow or fund growth, the focus now shifts from chasing cheaper finance to securing smarter finance.

The good news? Despite higher rates, growing competition between banks and non-bank lenders means SMEs are in a stronger position to secure flexible, well-structured credit facilities. Those who prepare well, know their numbers and approach negotiations strategically will be best placed to secure the most favourable terms.

5 strategies to secure the best business loan for your SME

Body: To strengthen your negotiating position, preparation is key. Lenders will assess your business’s risk and creditworthiness, so you want to present your enterprise in the best possible light and be ready to address any concerns upfront.

1. Make sure you have robust financials and projections

Body: To strengthen your negotiating position, preparation is key. Lenders – whether a big bank manager or an online fintech platform – will assess your business’s risk and creditworthiness. You want to present your enterprise in the best possible light and address any concerns upfront.

“Lenders in general look for timeliness, accuracy and consistency in financial reporting – and those are the same fundamentals business owners should use to monitor performance,” says Nigel Thayer, Director Working Capital Solutions – WA at Octet. “Accuracy enables the right decisions to be made, and often at the most competitive prices.”

Strong, consistent reporting signals reliability and gives lenders evidence that your business is well managed. The more clarity you provide, the easier it is for lenders to offer better rates, higher credit limits and more flexible terms.

2. Work with a business finance broker

A business finance broker can make all the difference when it comes to securing the best small business financing at the best rate.

“Make sure you have a commercial finance broker who’s experienced and communicates regularly,” Sonja Pfitz, Director of Pfitz Financial & Business Solutions. “Don’t use a mortgage broker – they’re very different. Commercial brokers also need to understand asset finance, working capital, and short-term loans.”

It’s important to be prepared to spend some time with your broker to identify the best finance for your business. “The more time you spend, the better they can understand your business and secure the right funding,” says Sonja.

A broker can open doors to lenders you may not have considered – and help you avoid facilities that don’t fit your needs. They’ll also handle the legwork of comparing offers, saving time and strengthening your negotiating power.

3. Negotiate to secure the best business loan terms

Every component of a loan is negotiable – not just the headline rate.

Be prepared to discuss fees (such as establishment fees, monthly service fees and early repayment fees) and how the facility is structured. Everything is on the table if you have a decent credit profile.

“Before entering negotiations, assess your company’s financial position, credit history, and the value you bring to the lender,” notes Faster Capital, a venture capital firm. “Companies with strong balance sheets and consistent revenue streams are in a better position to negotiate favorable terms.”

Look beyond the rate to areas that can have a real impact on cash flow – like fee waivers, longer repayment terms, higher advance rates or seasonal flexibility.

“Securing advantageous credit terms can significantly impact a company’s liquidity and overall financial health,” explains Faster Capital. “It’s crucial to approach these negotiations with a strategic mindset, aiming for a win-win scenario that benefits both the borrower and the lender.”

Even small changes to these details can make a big difference to the overall cost and usability of your finance. Lenders may have limited scope to move on interest margins, but they often have more room to adjust structure and fees.

4. Explore non-bank lenders for more flexible business finance

SMEs are increasingly exploring non-bank lenders for business finance. Non-bank lenders have grown their market share in recent years and offer faster approvals and more flexible terms than traditional lenders.

“The research shows clearly that firms with higher revenue and those in primary, secondary and logistics industries will be demanding more tailored working capital solutions from non-bank lenders, Brett Isenberg, co-CEO of Octet, explains. “This is to help navigate the current and upcoming economic turbulence.”

And unlike most banks, they typically do not require real estate collateral for moderate-sized loans, relying instead on the business’s cash flow and credit data for underwriting. As a result, owners can raise cash without risking their personal assets.

5. Build strong relationships with your business lender

Relationship banking matters more than ever. Don’t treat your lender as an adversary – instead, involve them as a partner in your business’s success. Cultivating a solid relationship with your finance provider can also give you an edge when negotiating future credit facilities.

Communicate proactively and honestly. Keep your financier informed of your business performance – not just the good news but also any challenges.

“Octet is great at this,” says Sonja. “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 makes a big difference.”

Regular, open communication builds trust, which translates into flexibility. A lender who understands your business is far more likely to offer support when you need it, whether that’s a temporary credit extension or a quick turnaround to take advantage of a new opportunity.

H2: Finding the right fit for your business essential

Business lending is key to business stability and growth – but it’s critical to choose solutions that are tailored to the unique needs of your business. Whether you’re exploring new funding or reviewing your existing facilities, taking a strategic approach ensures your finance works for you, not against you.

Preparation and clear communication are everything. By understanding your numbers, exploring your options and building strong relationships, you can turn tight credit conditions into opportunity.

At Octet, we offer expert guidance and tailored working capital solutions, such as Invoice Finance and Trade Finance, designed to unlock cash and improve liquidity. Talk to our team today and take control of your cash flow.

Disclaimer: 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.

The real cost of late payments for small business owners

Posted on October 10, 2025 by Russell Walsh

New research suggests late payments are having a serious impact on Australian small businesses, creating cash flow problems and – in extreme cases – forcing some into bankruptcy.

Late payments rose to the highest rate since March 2021, with B2B late payments also on the rise. CreditorWatch revealed 74% of small businesses experienced overdue payments. When you narrow the lens to the construction industry, that number jumps to 92%.

The impact on small business cash flow is profound. Xero found late payments were costing Australian small businesses $1.1 billion dollars a year.

Late payments strain less cash flow, which can impact a business’s ability to take opportunities or invest in growth – sometimes even requiring business owners to dip into personal funds to meet payroll requirements.

Cost of living crisis driving surge in late payments

“It’s basically a perfect storm,” explains Gold Coast business owner Bevan , who runs a small landscaping company with a staff of six.

“Costs have gone up across the board, which means our margins are smaller, but then in turn, clients are taking longer than ever to pay.”

Bevan says the implementation of automated payment reminders has helped a little bit, but the impact on cash flow has meant having to delay bigger jobs and find work-arounds.

“As a small business, having a safety net of cash is crucial,” he says.

“I’ve lost count of how many times I’ve had to dip into my personal money to cover costs – including payroll, on some occasions – not because I wasn’t bringing in enough revenue, but because there were so many outstanding invoices yet to be paid.”

Widening ripples in small business community

And then there’s the other side of late payments: they’re contagious.

For fledgling businesses, particularly those in the first few years of operation, one of the biggest risks of late-paying customers is the ripple effect.

Small business owners waiting on cash to come in are also more likely to default or delay on payments of their own.

“There have been times when I’ve had to put off paying supplier invoices because I’m waiting for a big lump sum to come in and someone hasn’t paid,” says Bevan.

Kathy Sozou, partner at restructuring firm McGrathNicol told the Sydney Morning Herald this “contagion effect” has put some businesses at risk of bankruptcy, not to mention that it can have a chain reaction that impacts the wider economy in a vicious cycle.

“If the developer falls over, suddenly every supplier in that chain that was reliant on them is exposed,” she explained.

“If you’re manufacturing all the windows for the developer, but suddenly there’s no construction for a year, what are you doing? It just wipes out entire vertical lines of supply chains.”

How small businesses can manage late payments and stay ahead

While late payments may feel like an inevitable part of doing business, small businesses don’t have to simply absorb the impact. Alongside best-practice credit control, working capital finance solutions provide a powerful safety net that ensures cash flow remains steady — no matter when customers pay.

“One of the most effective tools is invoice finance (also known as debtor finance),” explains Dan Verdon, Octet’s Director of Working Capital Finance Solutions – NSW. “Rather than waiting 30, 60 or even 90 days for settlement, businesses can unlock up to 85% of an invoice’s value straight away. That means they can cover payroll, supplier payments and tax obligations on time, without stress.”

Similarly, trade finance provides the upfront capital needed to pay suppliers, even if your customer invoices are still outstanding. “Paying suppliers on time not only protects your reputation,” says Dan, “but it also helps secure better terms and ensures reliable delivery to your own customers.”

For businesses supplying larger corporates, supply chain finance can be a game-changer. By leveraging the financial strength of bigger customers, it enables SMEs to receive faster payments, removing the pressure caused by long settlement cycles. And when unexpected gaps arise, term loans act as a flexible buffer, covering essentials like wages or overheads while waiting for funds to clear.

Finance solutions work best alongside good credit practices: conducting due diligence before entering contracts, automating invoice reminders, and offering multiple payment options. Relationship management is another vital layer. According to B2B payment platform Resolve, 70 percent of suppliers report higher loyalty when offering early payment discounts, which lead to a 30 percent reduction in disputes and delays.

“Ultimately, best practice is about prevention and protection working hand in hand,” Dan adds. “Good processes keep payments flowing, while working capital solutions provide resilience when they don’t.”

Octet can help your business breaking the late payment cycle

Late payments aren’t just a financial nuisance — they’re a compounding threat that can destabilise even the most well-run small businesses’ cash flow. One overdue invoice can quickly escalate, affecting supply chains, forcing owners to dip into personal funds and stalling critical growth plans.

While some factors are outside a business owner’s control, building in safeguards like stronger payment terms, proactive credit checks, and flexible cash flow strategies can make all the difference. Staying ahead of the risk means planning for cash flow volatility, not reacting to it.

“As economic pressures intensify, the ripple effects of unpaid invoices can spread fast, and that’s what makes them so dangerous,” explains Dan. “But the right financial tools allow business owners to break the late payments cycle and take back control.”

At Octet, we offer expert guidance, tailored working capital solutions, and incentive programs designed reduce the impact of late payments and unlock cash to improve liquidity. Talk to our team today and take control of your cash flow.

Disclaimer: 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.

Queensland construction firm unlocks growth with trade finance

Posted on October 8, 2025 by Russell Walsh

A Queensland-based construction and maintenance business was gaining serious momentum. Operating around the clock, the firm had built a strong reputation in the region and was steadily taking on more projects – but cash flow was holding it back from pursuing bigger, better opportunities.

Taking on more projects required making big investments upfront – more staff and more equipment – but delayed payments and withheld retentions were putting pressure on the firm’s ability to scale at the speed it wanted to.

That’s when they turned to a commercial finance broker, looking for a finance solution that could help them smooth out their cash flow and support their growth goals. Octet provided the financial headroom they needed to grow with tailored trade finance.

A scaling business facing a cash flow crunch

Founded just five years ago, this privately owned construction and maintenance firm has quickly earned a strong reputation across Queensland – both for its innovative approach to work and their commitment to safety and sustainability.

The business delivers a diverse range of 24/7 maintenance services and construction work – including asset upkeep, fencing, waste removal, earthworks, ground engineering, and plant hire. The company’s long-term vision is to expand its service offering even further, as well as adopting new technology, exploring opportunities for strategic partnerships, and expanding beyond Queensland.

With demand for infrastructure increasing, those ambitions were well within reach – but cash flow was holding them back, as they grappled with delayed payments and withheld retentions.

It’s a challenge familiar to many businesses in the construction and maintenance industry: They were delivering the work now, but full payment wouldn’t arrive until months later – while labour, materials, and equipment costs still had to be paid in the interim. Add to that the cash flow demands of an ever-growing business, and the business was facing a serious liquidity crunch.

“Retention delays and high upfront costs were eating into our ability to scale,” says the Managing Director. “We were at a point where the opportunities that were coming through were really exciting, but the cash flow gaps were holding us back.”

A finance solution designed for long-term growth

The business approached a commercial finance broker to explore options that could help it smooth out its lumpy cashflow and power its growth ambitions. Recognising the need for a dynamic working capital solution, the broker introduced the firm to Octet.

Octet’s Director Working Capital Finance – QLD, Allan Howe, took the time to understand the business’s cash flow cycles, operational model and growth ambitions. “Allan didn’t just look at cash flow forecasts – he got under the hood, to understand the day-to-day operations and our longer-term objectives. That’s what sets Octet apart from other lenders,” said the MD.

Allan structured a tailored $500,000 Trade Finance facility that was the right fit for this firm. “This wasn’t just about short-term cash relief,” he said. “They needed a flexible facility to help them scale sustainably.”

Octet’s Trade Finance solution provided the business with a revolving line of credit that would help it bridge cash flow gaps and fund supplier payments upfront, with repayment terms of up to 120 days. The business gained immediate access to working capital tied up in delayed payments and withheld retentions.

Along with the trade finance, the firm also has the option to unlock additional working capital by activating an Octet Term Loan, providing it with extra support as it scales.

Driving stronger performance across every part of the business

With Octet’s Trade Finance facility in place, the business has gained the financial confidence to scale, with the ability to invest in staff, equipment, and expand its day-to-day operational services. This has also enabled it to secure larger contracts, accelerate project delivery, and pursue interstate projects.

“We’ve now been able to grow without the usual financial pressure,” says the MD. “There’s no second-guessing – we can commit to bigger projects and new markets knowing we’ve got the capital behind us to support it.”

Crucially, Octet’s solution has also helped the business strengthen relationships across the supply chain. With supplier payments processed upfront, the business has secured priority access to key materials, giving them a competitive edge.

“Supplier relationships are critical in their industry,” Allan explained. “Stronger relationships with their suppliers in turn puts them in a stronger position when they tender for jobs.

The right solution at the right time

The impact of Octet’s funding has been transformational for the business, says the MD. “We’re in a much better position than we were before Octet. We can take on the opportunities we want and invest in growth without being constrained by cash flow.”

“The beauty of our working capital solutions is that it’s tailored for the business,” says Allan. “It’s designed to work with unique cash flow cycles. It’s about giving growing businesses the financial flexibility they need to scale without compromising their operations.”

Power your construction firm’s growth with Octet

In the construction industry, delayed payments, withheld retentions, and heavy upfront costs that can hold even the strongest businesses back from reaching their full potential.

Octet’s working capital finance solutions help businesses overcome those challenges, unlocking the working capital you need to grow your construction business.

Whether you’re scaling into new regions, investing in equipment or simply bridging the gap between project costs and client payments, Octet’s team can design a facility that grows with you.

Talk to our working capital specialists today and take the next step toward sustainable growth.

Disclaimer: 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.

Business uses debtor finance to unlock full potential and scale operations

Posted on September 26, 2025October 8, 2025 by Russell Walsh

A family-owned business founded 10 years ago has built a solid reputation as a specialist provider of traffic management services.

Renowned across regional Western Australia for its safety, technical competence and strict compliance standards, the company has strong relationships with mining companies, councils, civil contractors and government agencies.

However, significant sales growth was creating cash flow challenges that threatened their continued expansion.

Growth success creating cash flow strain

The company was experiencing the classic issue of success outpacing financial resources. Despite its exceptional sales and a healthy client base, the company’s liquidity was stretched due to the cash flow challenges typical of project-based work. Upfront costs for labour, equipment and materials had to be covered before invoices could be raised, while delayed payment cycles and retention amounts tied up much-needed working capital.

Without sufficient working capital to cover upfront project costs, they were forced to be selective about new opportunities, even those that could drive further growth. The business was also managing an ATO repayment plan, which added further pressure to their already strained cash position.

Adding to these stressors, approximately 50% of the company’s sales were concentrated with a single, large mining operation. This was excellent for revenue stability but it also meant that most of the company’s cash flow was stuck in unpaid invoices from one client.

Project delays, change orders and material cost volatility further amplified the unpredictability of cash flow timing, making it difficult to maintain operations or plan for growth initiatives.

Unlocking growth with Debtor Finance

Needing a finance solution to fuel further business growth, the company reached out to Octet.

“Traffic Management operations, in fact any labour-oriented businesses, often face particular cash flow pressures due to the nature of their work and the payment terms common in the construction and mining sectors,” explained Nigel Thayer, Octet’s Director Working Capital Solutions – WA. “Our solution needed to unlock the substantial value tied up in their outstanding invoices while providing the flexibility to scale operations confidently.”

Nigel worked with the company to structure a $2.25 million Debtor Finance facility to address their cash flow challenges. The debtor finance facility converted their unpaid customer invoices into immediate working capital, allowing the business to access up to 85% of their invoice values upfront.

This solution directly addressed the company’s core challenge by reducing reliance on client payment timelines. Importantly, the confidential nature of the facility meant that the company’s clients remained unaware of the financing arrangement, preserving the strong relationships they had built over their 10-year history. This was particularly crucial given their significant relationship with their major mining client.

“The beauty of this solution is that it grows with the business,” said Nigel. “As their sales continue to expand and they take on larger jobs, the facility automatically scales to provide the working capital support they need without requiring renegotiation or additional approvals.”

Improved liquidity driving sustained growth

With immediate access to cash previously tied up in unpaid invoices, the company now operates with the financial confidence needed to bid on larger contracts without the constraint of upfront capital requirements.

The improved cash flow position has enabled the business to negotiate early-payment discounts with suppliers, directly improving their project margins and overall profitability. They have also been able to invest in upgraded equipment and skilled labour, enhancing their service delivery capabilities and competitive positioning in the regional market.

Crucially, debtor finance has provided the necessary cash flow to maintain and reduce their ATO repayment plan, removing a significant source of financial pressure. The improved liquidity has also allowed the owners to repay shareholder loans that had been injected into the business during earlier growth phases, strengthening the company’s balance sheet and reducing personal financial exposure.

“This business now has the financial flexibility to take on additional customers and larger orders with staggered payment terms and can plan their growth with confidence,” said Nigel. “They’re no longer constrained by cash flow timing issues and can focus on what they do best – delivering safe traffic management services across regional Western Australia.”

With their solid financial foundation now in place, the company is well-positioned to continue their growth trajectory while maintaining the high standards that have built their reputation in the market.

Optimise your cash flow and growth potential with Octet

Debtor Finance or Invoice Finance can unlock the full potential of established businesses ready to scale operations. For companies in a wide range of business, such as labour hire, transport and wholesalers, Octet offers tailored debtor finance solutions designed to address the unique cash flow challenges of project work while supporting sustainable growth and operational efficiency.

Talk to our working capital specialists today and take the next step toward sustainable growth.

Disclaimer: 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.

Start the financial year strong: Expert tips for how to improve business cash flow

Posted on June 26, 2025August 14, 2025 by Russell Walsh

For many businesses, the start of a new financial year places renewed pressure on cash flow.

“Typically coming out of EOFY, what we see is many SMEs face a cash flow squeeze that can catch them off guard. Tax liabilities, superannuation payments and supplier payments often hit the business all at once,” says Nigel Thayer, Director Working Capital Solutions – WA at Octet. “The business may be profitable on paper, but without sufficient cash flow the business can fall under immense stress.”

That’s why the new financial year is the perfect time for businesses to reset. “Reviewing their finance facilities – or lack thereof – can help the business identify underused capacity or inefficient structures, and correcting this can propel them into the new year in a much stronger cash position,” says Nigel.

He shares practical strategies on how businesses can improve their liquidity and make better funding decisions heading into the new financial year.

When to review your cash flow strategy

Wondering whether it’s time to revisit your cash flow strategy? Nigel says there are few red flags businesses should look out for.

“The first sign is that cash flow gaps are growing – not shrinking – and there’s an ever-growing reliance on owner injections of cash to keep the business moving,” he says. “Increases to debtor days are another indicator. This could relate to taking on more new jobs with longer trade terms, or more worryingly, it might signal that customers are having cash flow issues and dragging out payments.”

Another sign is growth without tangible progress. “The business might report strong sales, but overall growth is stagnant – often because working capital is trapped somewhere in the cycle,” he explains.

If this sounds familiar, Nigel recommends a deeper review with your accountant or broker. “There are solutions that deliver immediate positive results.”

Unlocking cash stuck in the cycle

One of the most effective ways to boost cash flow is by reviewing where money gets locked up – like unpaid invoices or upfront supplier payments.

“This could be working against the business and restricting its growth and true potential,” says Nigel. “By implementing funding facilities that complement the business’s cash conversion cycle, you can unlock working capital that supports the business and promotes growth.”

Two underused tools stand out: Debtor Finance (also known as Invoice Finance) and Trade Finance. Aligning these tools to your cycle can materially reduce funding gaps for businesses.

“Invoice finance turns receivables into real-time funding rather than waiting 30+ days,” Nigel says. “On the payables side, trade finance is underused as a way to extend supplier terms without damaging relationships or missing early payment incentives.”

Use rolling cash flow forecasts to stay ahead

In times of economic uncertainty – or even just busy trading periods – a rolling cash flow forecast is one of the best tools a business can have.

“It typically allows a business to see ahead 13 weeks and identify where shortfalls may occur, when large payments fall due or when growth opportunities might need injections of cash,” says Nigel. “The key is that it’s not static – it allows the business to continually reset, adapt and adjust the forecast to the circumstances.”

A rolling forecast gives decision-makers visibility, and helps with funding approvals.

“Lenders in general look for timeliness, accuracy and consistency in financial reporting – and those are the same fundamentals business owners should use to monitor performance,” Nigel explains. “Accuracy enables the right decisions to be made, and often at the most competitive prices.”

Don’t wait for a cash flow crisis

Nigel’s recommendation to business owners at the beginning of the financial year is simple: don’t wait.

“Too often we see business owners thinking about adopting a working capital funding facility – they know it’s needed, but they get busy or some debtor receipts come in, and they feel that momentary relief,” he says. “But the underlying cash flow issue hasn’t been resolved. It invariably returns – and they’re back to square one.”

Delaying action can have serious consequences. “We’ve seen good businesses in highly stressed positions – taxes unpaid, creditors blown out, owners at breaking point – all because they waited too long to fix the underlying issue.”

The smarter path? Engage your trusted advisor now. “Invest the time to ensure the business is properly funded to get off on the right foot in the new year,” Nigel says. “That time investment will enable the business to make forward decisions – not just fight fires with a dwindling bucket of water.”

“At Octet, we’re specialists in working capital funding,” Nigel adds. “We identify where cash is getting stuck and tailor our tools – like invoice finance, trade finance and supply chain solutions – to release it back into the business. It’s never one-size-fits-all. Understanding the client’s business and applying that specialisation is what sets us apart.”

Keep your cash flowing

Strong cash flow is the key to business stability and growth – and we’re here to help at every stage. At Octet, we offer expert guidance and tailored Working Capital Solutions, such as Invoice Finance and Trade Finance, designed to unlock cash and improve liquidity. Talk to our team today and take control of your cash flow.

Disclaimer: 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.

Will the Australian federal election affect business financing?

Posted on April 4, 2025April 7, 2025 by Russell Walsh

With Australians heading to the polls on 3 May 2025, business owners are once again grappling with an age-old question: how will the election impact business confidence?

Business confidence often dips in the months leading up to an election day, driven by policy uncertainty and cautious decision-making, making some business leaders hesitant to apply for finance. But Dan Verdon, Director of Working Capital Solutions NSW at Octet, says there’s no reason for businesses to delay funding decisions.

“There is absolutely always a bit of hesitancy in the market around election time, but it’s really the borrowers, not the lenders, who hold back.”

And the data backs him up. While election periods often spark business uncertainty, the numbers tell a different story about their real impact on the economy.

Data shows pre-election lending slowdowns are more perception than reality

The pre-election slowdown in business activity often comes down to feelings, not facts. As Dan puts it, “I don’t think anyone’s ever really been able to put their finger on exactly why there’s that perception that ‘we should do nothing.’ Yes, there’s an election brewing, but we all get up the next morning and go to work.”

Businesses, especially SMEs, often adopt a wait-and-see approach during election periods, delaying key investment and funding decisions. Ahead of the 2019 election, Westpac found 50% of small businesses were worried or uncertain about the impact election policies will have on their operations, delaying decisions such as staffing and investment as a result.

But post-election, there was a quick recovery in SME confidence. Westpac’s post-election survey found that 55% of SMEs were optimistic after the election – up from just 19% beforehand. Ganesh Chandrasekkar, Westpac’s General Manager for SME Banking, described a “palpable shift in sentiment,” with delayed projects fast-tracked.

Dan explains, “Each time an election comes around, there’s always talk about hesitancy and delays. But for most SMEs, elections don’t usually have an enormous impact.”

The data supports this. A recent analysis by investment bank Barrenjoey concluded that Australian federal elections have limited impact on the economy, RBA policy, or confidence. Over the past 35 years and 12 elections, Australia’s domestic equity market has delivered an average annual return of 9%, with only two down years coinciding with elections.

Why the election shouldn’t put business financing plans on hold

For lenders, it’s business as usual. “I’ve never seen the handbrake go up from the lenders themselves,” Dan explains. “It’s more about market sentiment. People are unsure what’s going to happen, so that creates a delay in their decision to proceed.”

In Dan’s experience, the actual funding needs of SMEs don’t disappear during an election cycle. “If you need funds now, chances are you’ll still need a cash flow or working capital solution facilitated by a lender after the election as well,” notes Dan.

While certain industry sectors may be impacted by specific policy changes, such as new import regulations or environmental mandates, the vast majority of SMEs are insulated from major shifts.

“We don’t have a crystal ball, and we don’t know what legislation might change,” Dan says. “But history shows us that most SMEs won’t experience any significant impact.”

Don’t let uncertainty stall your business’s growth

For businesses considering finance in the lead-up to the election in May, Dan offers this advice: don’t wait.

“You’ll still need working capital, you’ll still need to fund growth, and you’ll still face the same opportunities and challenges,” says Dan. “Waiting until after the election to secure business finance may mean missing out on opportunities now.”

Talk to Octet today about flexible funding solutions, including Trade Finance and Debtor Finance, that keep your business moving, no matter what the political landscape looks like.

Disclaimer: 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.

Octet working capital solutions fuel growth for freight company

Posted on March 17, 2025 by Russell Walsh

Running a freight forwarding business means managing multiple moving parts—timely deliveries, supplier relations, and financial liquidity to keep everything flowing smoothly. For a freight forwarding company based in Western Australia, cash flow became a significant bottleneck to their growth. Despite being profitable and experiencing strong sales growth, the company faced tight financial constraints due to limited access to working capital. That’s when they partnered with Octet to address their immediate challenges and set them up for future growth.

Cash flow strain from restrictive financing

The company’s existing debtor finance facility with another financier was both costly and inefficient. While the business was growing, the existing cash flow funding didn’t keep pace with the increased sales, creating a substantial cash flow gap. The company was also dealing with stretched supplier relationships and an ongoing ATO debt under a repayment arrangement, which added to the pressure.

In addition to the debtor finance line, the company had a bank loan that came with restrictive terms and security requirements, further limiting their financial flexibility. With future expansion in mind, the business needed to find a more robust financing strategy to support their growth plan, so they engaged Shane Crouch, Director of Comden Financial Group.

A tailored, innovative finance solution

Recognising the need for a more effective working capital solution, Shane introduced the business to Octet’s Director of Working Capital Solutions VIC/TAS/SA, Sam Ralton, who then collaborated with Nigel Thayer (Octet’s Director of Working Capital Solutions for WA). With a deep understanding of the unique cash flow challenges in the freight forwarding industry, Nigel proposed a tailored multi-facility solution that provided a significant funding boost to alleviate financial pressure.

The package included:

$1.4 million Debtor Finance Facility – Allowed the business to access the cash tied up in unpaid invoices, providing immediate liquidity to keep operations running smoothly and reduce payment delays.
$50,000 Trade Finance Line – Ensured goods could continue moving through the supply chain without delays, improving supplier relations and payment efficiency.
$450,000 Term Loan – Aimed at paying off the restrictive bank loan, the term loan provided the company with more flexibility, offering a three-year repayment term and freeing up much-needed cash for day-to-day operations.

The Managing Director of the freight forwarding company stated: “The Team at Octet made the funding process seamless, providing a tailored solution that aligned with our business needs. Their expertise, professionalism, and efficiency in approving and setting up the facility were invaluable.”

With Octet’s tailored solution, the company could pay down key suppliers, meet their ATO obligations with greater ease, and position themselves for growth in new markets.

Shane adds: “Octet had a comprehensive understanding of the situation, and they acted swiftly and efficiently to secure the required financing. Moreover, they were able to assist by providing an additional $500k at the last minute to resolve an issue caused by the outgoing financier.”

Stronger cash flow and future growth opportunities

Since the finance facilities were put in place towards the end of 2024, the business has already seen a positive transformation. The Octet working capital facilities have helped the company:

streamline cash flow
strengthen supplier relationships
expand into new markets

“From the very beginning, Octet took the time to fully understand my client’s business and its unique needs, which was critical in ensuring the right solution,” continues Shane. “Thanks to their dedication and professionalism, we were able to achieve a favourable outcome.”

In an industry where cash flow is the lifeblood of operations, working capital finance can provide the flexibility needed to thrive. By partnering with Octet, this freight forwarding business gained a tailored financial solution that addressed their immediate challenges and set them up for the future.

“Octet provided a flexible structure that has helped improve our cash flow and overall financial position, allowing us to focus on growth with confidence,” said the Managing Director. “We appreciate their genuine proactive approach and ongoing support.”

Power your growing business

If your business is experiencing cash flow challenges or you want to capture new opportunities for rapid growth, Octet empowers businesses across a range of industries, including transport, wholesale, and manufacturing. We work successfully with Australian businesses facing these same growth challenges every day, providing innovative Trade Finance and Debtor Finance working capital solutions and supply chain finance technology.

Speak to our team of working capital specialists to see how we can power your business growth today.

Disclaimer: 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.

What is business finance? The key to sustainable growth

Posted on January 2, 2025April 2, 2025 by Russell Walsh

For businesses planning for growth and longevity, an understanding of business finance is not just beneficial. It’s essential. This knowledge helps safeguard financial health and equip businesses to make strategic decisions, ensuring they thrive in competitive markets.

In this article, we’ll answer the following questions: What is business finance, what are common financing options, and when is it time to seek finance?

Tim Bowring, Octet’s Head of Sales, Health, also helps us explore the business financing options for the health and pharmaceutical industry. But regardless of the industry you operate in, these insights will help you to better understand the business finance options that can help your business grow.

Understanding the best finance options for your business

Business finance encompasses all types of financial activities crucial for day-to-day operations and long-term planning. It includes managing cash flow, budgeting and funding strategic initiatives.

Tim says businesses must first grasp how cash flow works when it comes to understanding finance. “Cash is king. It pays the bills and repays debt. Having a good picture of how your cash flow works will set you up to understand the most appropriate finance options available to your business.”

Tim says when looking at types of finance, there are several key factors to consider, such as:

How often will you want to draw down on the facility?
How quickly can you repay it?
Are there ongoing fees to be paid if you haven’t used the facility or drawn all of the limit?
What security do you need to get the finance?

“One common misconception is that the lowest interest rate is the most important thing,” he adds. “But the interest rate isn’t always paramount.”

When it comes to the healthcare sector, Tim helps secure funding for businesses who work with him on a range of needs, including:

paying ongoing wages for locum doctors and dentists
importing stock and equipment
manufacturing medical supplies and pharmaceuticals
covering IT service contracts.

Business financing options

There are many financing options for managing and growing a business. Many businesses rely solely on internal sources of funding (so the funds they generate as part of operations).

When seeking external sources, most business owners will be familiar with traditional forms such as bank loans and lines of credit. However, most businesses are experiencing tightening conditions, and banks can take months to approve finance applications. Banks also often seek personal security and collateral, which is a drawback for businesses that don’t have significant assets or don’t want to risk their director’s personal assets.

Equity financing is also an option for start-ups and growth-stage companies without steady cash flow. However, this dilution of ownership and long-term commitment are significant drawbacks of this type of finance.

Trade finance and debtor finance (also called invoice finance) are two other types of business financing options. Trade finance products help facilitate international and domestic transactions, mitigating risks and facilitating smooth transactions between buyers and sellers.

“If you have to pay for stock on delivery, for example, trade finance can provide you with extended terms,” says Tim. “If you have short payment terms, there are even ways to negotiate an early settlement discount with the supplier.”

Debtor finance (also called invoice finance) helps bridge cash flow gaps by allowing businesses to borrow against their receivables ledgers.

“A business that’s growing rapidly by offering competitive credit terms to its customers is likely creating a cash shortage in the business,” Tim says. “If it is buying stock that is paid at order or shipping, it is also negatively impacting the business’s cash flow. Invoice finance can unlock up to 85% of invoice values immediately, which is essential for maintaining operations and funding growth.

“In today’s challenging environment, businesses are feeling the cash flow pinch. The key to managing cash flow gaps is often intelligently tailoring the right business finance solution for your supply chain and growth requirements.”

Healthcare companies particularly rely on a smooth-flowing supply chain to support patient wellbeing and ensure the timely availability of medical and other supplies. For many businesses operating in the industry, business finance to manage cash flow is crucial to safeguard their supply chain and network.

Ready for better business finance? What you need to know

Before applying for any variety of business finance, Tim recommends preparing by having a detailed cash flow forecast and identifying any cash flow gaps. “Then, make sure you ask plenty of questions of the financier about their processes and the specific product/s to see whether they’re a suitable fit.”

Questions include:

What security is required to obtain the facilities?
What are the line or service fees?
Does the facility or platform protect my business from risk when importing from overseas?
What is the speed of transactions?
How can you support my businesses to achieve growth, whilst making informed financial decisions?

“Octet has a proven track record of supporting Australian businesses. Whatever industry you’re in, we can help you accelerate supplier payments, general cash flow and foster stronger relationships with customers and suppliers with our Debtor Finance and Trade Finance solutions.

“The Working Capital Specialists at Octet will work with you to help you better understand your cash flow, where the gaps are and what options are available for funding those gaps.”

For those in the healthcare and pharmaceutical industry, these solutions can mitigate the unique challenges faced by the industry and make the most of growth opportunities.

Discover the best business finance fit for you

For many businesses, accessing appropriate business finance is crucial to achieving sustainable growth. Octet is committed to supporting businesses through tailored financial solutions, helping them understand their cash flow and funding options and ensuring they are well-positioned to seize growth opportunities.

Whether you’re in the healthcare industry and need timely supply finance chain solutions, you’re a labour-hire company with cash tied up in unpaid invoices or a manufacturer seeking new trade opportunities, we can help. Want to know more? Get in touch with the team 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.

Octet Debtor Finance empowers Skillforce Recruitment to scale with confidence

Posted on December 1, 2024January 22, 2025 by Russell Walsh

For businesses in high-demand labour hire that service sectors like construction, mining, and logistics, rapid growth can bring significant challenges. Scaling operations often requires not only an increase in workforce size but also the financial flexibility to meet payroll, supplier payments, and other operational demands.

This was the challenge that Perth-based Skillforce Recruitment, a leading provider of tailored staffing solutions, faced as it grew alongside its clients. The solution came in the form of a powerful partnership with Octet, which provided the financial support needed to help Skillforce, and their clients, scale confidently and seize new opportunities.

The importance of financial flexibility in recruitment

Founded in 2010, Skillforce Recruitment has always been committed to providing top-tier staffing solutions for businesses in sectors that face high demand for skilled labour. Over the years, Skillforce’s reputation for flexibility and scalability has helped the company grow alongside its clients, providing customised workforce solutions to industries that often require rapid scaling.

However, as Skillforce’s business expanded, the need for a reliable financial partner became clear. Managing the constant flow of recruitment needs, payroll, and supplier payments was complex, and traditional financing options often didn’t provide the flexibility they required to meet client demands.

“Recruitment is about responding to client needs quickly, which often means rapidly scaling workforces to meet project deadlines,” explains Daniel Ziccardi, Managing Director of Skillforce Recruitment. “However, scaling is only possible when there’s financial flexibility to support that growth. That’s where Octet’s working capital solutions came in to help us optimise our cash flow, so we could focus on what we do best — serving our clients.”

Local mining companies turn to Skillforce for qualified personnel

Finding the right financial partner to optimise cash flow

Recognising the growing need for financial support to maintain smooth operations, Skillforce partnered with Octet who are experienced with providing tailored working capital finance solutions to labour hire businesses.

“When we started working with Octet, we were impressed by their deep understanding of our business and their ability to tailor a financial solution that met our needs. Octet offered us the flexibility we needed to scale efficiently and support our clients,” says Daniel. “Their working capital solutions were a perfect fit for our growth goals.”

Octet tailored a $750,000 Debtor Finance facility, which immediately gave Skillforce access to funds tied up in outstanding invoices, allowing the company to cover payroll and supplier payments without waiting for invoices to be settled. This enabled Skillforce to take on more clients, onboard additional staff, and manage larger recruitment projects without the stress of cash flow delays. As they’ve continued to expand, this facility has increased to $4.5 million.

“The limit increase reflects the company’s dynamic growth and increasing demand for its services. This boost in working capital enabled Skillforce to manage a larger volume of client projects and recruitment activities, all while maintaining financial stability,” explains Nigel Thayer, Octet’s Director Working Capital Solutions – WA.

Streamlining cash flow to expand operations

The funding provided by Octet allowed Skillforce to better meet the needs of clients in high-demand and fluctuating industries without disruption.

“Whether it was onboarding workers for a large-scale construction project or quickly scaling a team for a mining operation, with Octet’s working capital solutions, Skillforce could align its cash flow to the specific demands of each project,” said Nigel.

With reliable financial support, Skillforce was able to take on more clients and expand operations. This allowed them to manage multiple projects simultaneously and respond to new business opportunities without the worry of cash flow constraints. As a result, Skillforce could maintain the speed, quality, and consistency that their clients expect, all while growing their business and enhancing their reputation as a trusted partner in recruitment.

“Our collaboration with Octet enhances our ability to provide clients with a comprehensive growth solution that includes both reliable staffing and the financial backing needed to grow sustainably,” Daniel explains.

Skillforce have a large database of skilled construction labour hire candidates

A transparent and supportive partnership for sustainable growth

The relationship between Skillforce and Octet has been characterised by transparency and flexibility. Octet’s supply chain platform provides clients with easy-to-use tools to track and manage their financial transactions, giving businesses greater visibility and control over their cash flow.

“Octet’s platform is incredibly user-friendly,” says Daniel. “It allows our clients to validate, track, and authorise transactions at each stage, which reduces the complexity and risk of managing finances. The transparency of the platform has been critical in building trust with our clients.”

“Octet’s understanding of Skillforce’s business model and industry has made the partnership even more effective,” adds Nigel. “By providing tailored financial solutions that fit the unique needs of each project, Octet has allowed Skillforce to offer more comprehensive services that address both recruitment and financial support.”

Looking ahead, Skillforce plans to continue expanding its service offerings to cater to even more industries. The financial backing provided by Octet will be crucial in supporting these expansions, allowing Skillforce to offer even more tailored solutions to clients.

Says Daniel, “With Octet’s ongoing support, we can continue to help businesses scale and meet the growing demands of their industries. We’re excited to be part of their journey as they take on new opportunities and expand their operations.”

Power your growing business

If your business is experiencing rapid growth or you want to capture new opportunities, Octet’s labour hire finance solutions give your business the power to scale. We work successfully with Australian businesses facing these same growth challenges every day, providing access to best-in-class working capital solution and supply chain finance technology. Contact us today to discover how we can help power your business growth.

Boost your business: introducing our new business Term Loan

Posted on December 1, 2024January 14, 2025 by Russell Walsh

Finding flexible and affordable financing can be challenging for any business. Increasing interest rates and restrictive bank terms often make it impractical for SMEs to access the finance they need.

Are you a business owner who needs more flexible finance options? Or perhaps you’re a commercial finance broker seeking better financing solutions for your clients? At Octet, we understand that the banks’ offerings are often too inflexible and take too long to approve. So, we’ve developed our new business Term Loan, a tailored financial solution designed to help you meet your business goals.

Whether you need a working capital loan for operating expenses, equipment financing, asset finance, or to restructure existing loan facilities, our Term Loan allows you to capitalise on opportunities, consolidate debts and grow your business.

Flexible financing for every business

With financial pressures continuing to impact SMEs, we’ve received feedback from our valued clients and broker network about the need for more flexible and affordable finance solutions. So, we launched the Octet Term Loan.

“We’ve listened directly to our clients, our referral partners and the market. We understand the need for a supplementary term loan product that we can package with our existing working capital loans for SMEs,” says Allan Howe, Octet’s Director of Working Capital Solutions, Queensland.

Our Term Loan is available to both existing and new Octet clients with Trade Finance or Debtor Finance facilities. Those registering for these facilities are also able to apply for the Term Loan, which offers up to $2 million in additional working capital with flexible repayment periods ranging from six months to three years. It’s the ideal solution for businesses seeking a short-term business loan.

“We have designed it to be very flexible, and can tailor the term of the loan to suit your business needs,” says Allan.

Our Term Loan empowers you with additional working capital to help you meet your business goals, such as investing in assets and new equipment, covering operational costs during quiet periods or consolidating existing loans.

A tailored solution for your business needs

Invest in assets, plant and machinery

Our Term Loans can be used to invest in assets to grow your business, secure additional space for your business or invest in machinery or equipment.

If a missing piece in your business is holding it back or slowing your growth, a fast cash injection can help. “It’s all about providing the extra firepower so you can seize opportunities and grow your business,” says Allan.

Keep on top of operational costs

Cash flow shortages can impact business growth. When cash flow slows, our Term Loan can help you manage operational costs efficiently. Pay for everyday expenses such as payroll, inventory, rent and utilities.

Pay out or retire existing debt

Use the Term Loan to retire or pay new and existing debt, including debt owed to creditors and the ATO. By retiring or paying out existing debt, your business can improve its cash flow, enhance its creditworthiness, have more flexibility in its daily operations and increase financial stability.

Consolidate existing loans

Our business Term Loan can be used to consolidate loans, giving you the ability to simplify loan repayments, reduce interest with our competitive interest rates or decrease monthly payments by extending loan terms.

With a fast approval process and competitive rates, you can easily consolidate loans, saving time and money.

Ready to grow? Apply for a Term Loan today

Octet has the financial tools you need to succeed. Already an Octet client? You can apply for a Term Loan of up to $2 million with flexible repayment terms ranging from six months to three years. Not registered yet? Contact us today and discover how we can help.

Explore our Trade Finance and Debtor Finance solutions and see how we support businesses in sectors such as manufacturing, construction, and transport.

* Terms and Conditions apply. Consult your dedicated Octet Relationship Manager or BDM for full Terms and Conditions.

Factoring and invoice discounting: debtor finance solutions for cash flow management

Posted on November 30, 2024March 19, 2025 by Russell Walsh

Effective cash flow management is critical to business success. But slow-paying customers, tightening supplier conditions and inflexible bank terms can all affect cash flow. Even thriving businesses keen to capitalise on growth opportunities can face roadblocks due to cash flow fluctuations.

Many businesses are turning to debtor finance as a strategic financial solution. Whether you’re a commercial finance broker looking for the best deal for your clients or a business owner facing the daily challenge of managing cash flow, you understand the common challenges. Perhaps you’ve even explored debtor finance products such as factoring and invoice discounting but want to know more about leveraging outstanding invoices to access efficient working capital. In this article, we explore why more and more businesses are turning to this effective financial solution.

Common cash flow challenges

Businesses today face a range of cash flow challenges. Whether it’s customers delaying payments, renegotiating longer terms, or suppliers shortening or eliminating payment terms, Octet’s Director Working Capital Solutions NSW, Dan Verdon has heard it all. “The current challenging economic conditions are putting a strain on cash flow, but many business owners hesitate to address these critical issues early. That’s a mistake.”

Even thriving businesses are feeling the pinch from their traditional finance partners. “The banks and larger lenders are becoming slower and less responsive when providing loans that support business growth,” Dan says.

“Dealing with changing account managers and lengthy processing times is really frustrating for businesses in various stages of growth. Debtor finance is a reliable alternative to a traditional bank loan, offering businesses confidence in accessing working capital quickly and easily.”

Do any of these cash flow challenges affect you?

late-paying customers
restrictive bank conditions
extended payment terms.

Debtor finance could be the answer.

Take control of your cash flow with debtor finance

You might have heard the terms factoring and invoice discounting, invoice financing or invoice funding. But what do they actually mean?

They’re all broadly debtor finance solutions. Invoice factoring involves a business selling its accounts receivable to a financier, who gives them an upfront payment (up to 85% of the invoice value). The financier collects payments from the business’ clients, takes a small fee and passes the remaining funds onto the company. Invoice discounting is similar but with a critical difference — it’s the business, not the financier, that collects the debts.

The terms invoice factoring and invoice discounting are used less these days, as innovative finance providers like Octet offer more tailored debtor finance solutions.

These facilities use a major asset already in the business — the unpaid customer invoices — to sustainably meet its cash flow requirements. Debtor finance is tailored for growth and can reduce cash flow risk.

Dan advises his business clients to set up a debtor finance facility before they need it. “There is a small service fee to have the facility there, but this fee is upfront and predictable, and you only pay interest when you draw funds.”

While debtor finance helps mitigate cash flow gaps and maintain stability during volatile periods, Dan says this type of finance isn’t just for businesses facing challenges. “Debtor finance is used by many thriving, growing businesses looking for a line of credit to appropriately manage their cash flow.”

Businesses use debtor finance to:

enhance liquidity to meet operational needs and explore growth opportunities
take advantage of a tailored solution to suit their needs and cash flow cycles
streamline collections and administrative tasks
unlock potential for expansion and take on new projects
access expertise and tools for efficient credit control and debtor management.

Why brokers and businesses choose Octet for debtor finance

Dan says businesses in a range of industries access debtor finance to help grow their business. “Common industries we service include labour-hire, food and beverage, manufacturing and wholesale. But whatever industry you’re in, if you’re a B2B business, debtor finance can work for you.”

While many business owners are considering their financing options, brokers are also exploring solutions for their clients. Brokers can play a crucial role in helping businesses navigate these cash flow challenges and make informed financial decisions.

“Whether you’re a business owner, a broker or an accountant, if you’re considering debtor finance, take the time to assess the business’s financial position, cash flow forecasts and growth objectives before speaking with a financier,” explains Dan. “Business owners and brokers should partner with reputable providers. At Octet, we offer a broad range of working capital solutions tailored to each business.”

Businesses that access Debtor Finance through Octet:

get up to 85% of business invoices as a cash advance
can access funds without personal asset security
enjoy the flexibility of their debtor finance facility growing as their receivables grow
can seamlessly integrate the facility with their existing accounting software such as Xero and MYOB AccountRight.

Are you a commercial finance broker? Simply refer your client, and we’ll handle the rest.

Tailored debtor finance solutions for every business

Octet’s Debtor Finance solutions are designed for businesses to meet cash flow challenges, better manage fluctuations, capitalise on opportunities and grow. Whether you’re a business owner ready to explore their finance options or a broker who wants to see their client’s business soar, debtor finance could be the solution for you. Get in touch today.

Disclaimer: 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.

What is supply chain finance?

Posted on November 28, 2024December 18, 2024 by Russell Walsh

In today’s fast-paced business environment, mastering cash flow is no longer simply a goal; it’s a necessity for success. Enter supply chain finance – a strategic solution designed to enhance liquidity and strengthen supplier relationships.

Are you a business manager keen to improve operational efficiency and financial stability or a commercial broker looking for innovative funding options for your clients? In this article, we will explore the fundamentals of supply chain finance, its benefits and how it can transform a business’s financial landscape.

Supply chain finance: how does it work?

Supply chain finance, also known as supplier finance, is a financial solution that supports both buyers and suppliers by optimising cash flow within the supply chain.

The solution allows suppliers to receive early payment on their invoices from a third-party financial institution while enabling buyers to hold on to their cash longer via extended payment terms.

Leveraging technology to link buyers, suppliers and financial institutions, supply chain finance enables faster, more transparent transactions. By using supply chain finance, businesses can improve supply chain management and minimise financial risk.

The benefits of supply chain financing

When cash flow is smoother, business operations can thrive – that’s where supply chain finance comes into play. This financial strategy not only eases financial pressure but can also build stronger, more resilient relationships, empowering both buyers and suppliers to better manage financial risks. Matthew Board, Founder and Managing Director of broker.com.au, outlines some of the benefits.

Improve cash flow: Supply chain finance allows businesses to unlock liquidity sooner, giving them the flexibility to extend payment terms without affecting supplier payments or disrupting cash flow. “It benefits both suppliers and buyers,” adds Matthew. “Buyers can maintain longer payment terms, which aids their cash flow, while suppliers receive cash upfront.”
Stronger supplier relationships: “It can also strengthen buyer-supplier relationships,” he says. “With prompt payments, suppliers avoid the frustration of delayed funds, fostering a healthier business relationship.”
Risk mitigation: By balancing cash flow needs for both suppliers and buyers, supply chain finance offers a layer of financial stability, helping to reduce risk and keep operations running smoothly. For suppliers, one advantage is earlier access to funds rather than waiting up to the agreed payment terms. It also reduces the risk of late payments since the lender covers most, if not all, of the payment upfront.”

Do you need supply chain financing for your business?

So, when is supply chain finance a good option? Take, for example, these scenarios:

Businesses with long cash conversion cycles: Companies with extended payment terms often benefit from the way supply chain finance works by keeping operations steady despite delayed incoming payments.
Working with international suppliers: The strategy can be useful for businesses with international buyers, where longer payment cycles are common. It can also improve trade relationships and reduce risks associated with importing and exporting goods.

Matthew recalls one local manufacturing business he worked with that produced carbon fibre wheels for high-end car brands, including Ferrari and Porsche.

“As an original equipment manufacturer for major car companies, you can imagine that the payment terms are at least 120 days. In addition, the bulk of this particular business’s clients were based overseas. Because they were foreign-based buyers, trying to find a financial solution was quite difficult.”

This is where supply chain finance can bridge the cash flow gap effectively.

Supply chain finance is also beneficial for service-orientated businesses with big blue-chip buyers or clients that delay payment, Matthew adds.

He reflects on one case where a labour-hire company had several major banks as clients and faced payment delays. “In situations where staff must be paid fortnightly or weekly, but payment takes months to come through, supply chain finance provides the essential support needed.”

How Octet can help your business thrive

Navigating cash flow challenges and maintaining strong supplier relationships is crucial to business success. Octet’s intelligent supply chain finance solution is designed to support exactly that, giving you the ability to fund business growth and invest in supply chain innovation. Our offering allows businesses to extend payment terms while ensuring their suppliers are paid instantly.

Octet’s supply chain finance and other working capital solutions are tailored to address specific cash flow challenges and growth opportunities. We offer a full range of other products to ensure your business’ diverse needs are met, including:

Trade Finance: Provides a flexible line of credit to power international and domestic trade transactions keeping cash flow steady, allowing businesses to secure inventory and services without straining cash reserves.
Debtor Finance: Turns unpaid invoices into immediate cash, ensuring steady cash flow for companies with extended credit terms.
Term Loan: Provides flexible funding for expansions or major asset purchases with predictable repayments for financial stability.

Discover Octet’s solutions today

With Octet’s supply chain finance, Australian businesses can accelerate cash flow by extending payment terms with customers while ensuring suppliers are paid promptly, creating healthier and more resilient supply chains.

Get in touch with us today to discover how we can help foster your supplier relationships, strengthen your cash flow and help your business grow.

Matthew Board is the Founder and Managing Director of broker.com.au and leads a team of business finance experts connecting borrowers with the right funding solutions to optimise their operations.

Disclaimer: 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.

Proven strategies for successfully growing your business

Posted on November 28, 2024December 2, 2024 by Russell Walsh

There are many ways to grow a business – organically, strategically, through innovation or expansion. While growing your business can be exciting, the path forward isn’t always clear. But with the right business growth strategy in place, you can sustainably increase revenue, expand your customer base and even enter into new markets.

Octet is here to support you on this journey, providing finance and payments solutions to turn your growth goals into sustainable success. Read on as we explore how to find your best direction!

Key ways to grow a business

To understand how a business can grow effectively, we spoke with creditte founder and director Morgan Wilson, who has extensive experience helping businesses grow through various financial methods and operational efficiencies.

He lists the following methods as solid strategies for business growth.

Organic growth: This includes increasing sales, improving customer retention and entering new markets.
Inorganic growth: Mergers, acquisitions or partnerships with complementary businesses can provide significant growth opportunities.
Innovation: Introducing new products, services or processes that differentiate the business in the market.
Market expansion: Tapping into new geographic locations or targeting new customer segments can broaden a business’ reach.
Diversification: Expanding into related or new industries to create additional revenue streams.

As Morgan highlights, successful business expansion requires more than just ambition; it demands a well-thought-out action plan that addresses specific goals. When developing an action plan for business growth, each method needs careful planning and a strategic approach.

Which business growth strategy is right for you?

We know that having a thorough strategy is crucial. So, which strategy is right for your business and its direction? It could well be the million-dollar question.

“A structured business growth strategy aligns your resources, goals and actions, ensuring that all parts of your organisation are working towards the same objectives,” says Morgan. Let’s explore this further.

Positive strategies

Consider these effective business development growth strategies.

Focusing on customer retention: Delivering exceptional customer experiences encourages repeat business.
Increasing average transaction size: Upselling and cross-selling to existing customers is often more effective than acquiring new customers.
Improving sales processes: Streamlining the sales funnel can enhance conversion rates and boost revenue.
Expanding product or service offerings: Innovation around core offerings can lead to new revenue streams.
Targeting new markets: Exploring untapped geographical or demographic markets can accelerate growth.

Morgan advises businesses in the growth phase to prioritise planning. “Be deliberate about what you do – don’t simply pursue growth for growth’s sake.”

Common pitfalls

It’s important to also familiarise yourself with potential issues to ensure you take the right direction with your planning. Common pitfalls include:

Resource misallocation: Investing in initiatives that do not yield returns or align with the business’ overall vision can drain valuable resources.
Operational inefficiencies: If growth isn’t properly managed, businesses may experience stretched operations, resulting in poor customer service or operational breakdowns.
Cash flow issues: Rapid expansion often requires upfront investment, leading to liquidity problems without careful planning. A robust strategy can help mitigate these risks by ensuring effective resource management and financial stability.
Burnout: Morgan notes, “We often see business owners without a strategy ultimately working for the business rather than the business working for them.”

Proper cash flow management is key to sustaining growth. It ensures that working capital can support operational needs as you scale. Furthermore, staying flexible in your approach allows for necessary adjustments in response to market changes.

Incorporating technology, marketing and strategic investments into your business growth plan can also enhance your potential. Automation and data analytics streamline operations and reduce costs, while digital marketing strategies can expand your audience reach at minimal expense. Additionally, strategic investments in equipment, technology and talent are crucial to support scalable growth without overextending your resources.

The right financing strategies for growth

Access to the right finance solutions is essential for implementing effective business growth strategies. With the right financial product, businesses can unlock their potential for advancement. At Octet, we offer a suite of innovative working capital solutions, including Debtor Finance, Trade Finance and Term Loans.

Debtor Finance enables businesses to use outstanding invoices as collateral to maintain steady cash flow. This is crucial for managing expenses and investing in growth opportunities, especially for those facing extended credit terms. With debtor finance, businesses can execute their financial plans more effectively, reducing uncertainty from delayed customer payments.

Trade Finance supports domestic and international transactions by providing funding to purchase inventory or services. This ensures that companies can meet demand without straining cash flow, allowing for immediate payments to suppliers while repaying their financier at a later agreed date. Additionally, securing competitive exchange rates upfront can protect against currency fluctuations and solidify your bottom line profitability.

For other business growth requirements, our Term Loan provides structured funding for capital investments, expansions or significant purchases. It offers a predictable repayment schedule, aiding strategic planning and enhancing financial stability. In conjunction with either Trade or Debtor Finance, businesses can use term loans to invest in assets, cover operational costs during slow periods or consolidate existing debts.

Getting your business growth plan right

By integrating these financial tools and products into your business growth plan, you can confidently navigate growth opportunities and build a sustainable future.

Ready to advance your growth goals? Contact us today for tailored supply chain finance solutions.

Morgan Wilson is the Founder and Director of business advisory service creditte. Throughout his career, Morgan has delivered accounting, taxation and business advice to small, medium and large enterprises around Australia.

Disclaimer: 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.

Driving financial stability via smart Debtor Finance and Buyer Protection

Posted on November 28, 2024 by Russell Walsh

A successful recruitment agency in Western Australia was facing a series of challenges that were hindering its growth potential. Specialising in labour hire, the company provides contract staff across various blue-collar and white-collar sectors. With over 1,000 successful placements and a reputation for delivering professional, personalised services, the company had become a leader in its field with demand for their services increasing every month. However, despite this success, the business struggled with cash flow instability – a challenge that was hindering their ability to grow and take advantage of customer opportunities.

The challenge of unpredictable cash flow and missed opportunities

The company’s primary issue was that its sales growth had outpaced the restrictive invoice finance facility (also known as debtor finance) provided by their previous financier. The business had been relying on invoice financing to maintain cash flow, but the parameters of that particular facility were proving unreliable.

As the business could not predict how much funding it could draw each week, it became increasingly difficult to take on new customers, increase business with existing customers, manage payroll, and meet increasing tax and super obligations. The inability to access sufficient cash flow on demand created a constant feeling of uncertainty, limiting the company’s ability to scale. The levels of funding generated against invoices and specific customers were inconsistent, making it difficult for the company to plan their cash flow. This unpredictability was particularly damaging given a critical requirement of a labour hire business is to manage timely payments of the weekly payroll for its contractor base.

The company found themselves in a frustrating cycle. Certain key clients were eager to expand their relationship with the company. However, the business was forced to turn them down or limit the amount of work they could accept due to the lack of sufficient funding. This situation not only created missed sales opportunities, limiting their growth potential, but also impacted their profitability.

Seeking security via a tailored working capital finance with Octet

Recognising the urgent need for a more reliable finance partner, the labour hire the company reached out to Octet, seeking a way to improve cash flow and streamline its financial operations. After a thorough assessment of their financial situation, Octet’s Director of Working Capital Solutions – WA, Nigel Thayer, structured a tailored solution that would address their cash flow challenges and support their growth ambitions.

“We knew we could structure a facility that not only generated significantly more cash for the business but would allow them to take on more work, all while having confidence in their weekly funding levels,” Nigel explained.

Octet provided a comprehensive finance package including an increased $1,750,000 Debtor Finance facility that was designed to release the cash tied up in unpaid invoices. With this facility in place, the company was able to access a much larger portion of their receivables, ensuring they had the liquidity needed to operate smoothly. The Debtor Finance package provided the business with certainty on the levels of funding available to each of their debtors, which provided a significant funding enhancement over its existing financier.

To add a further layer of comfort to the business owner, Octet introduced a ‘Whole of Turnover’ Buyer Protection insurance package. This coverage underpinned the debtor finance line, protecting the business from the risk of debtor insolvency. In simple terms, this meant the company could be confident that if any clients were unable to pay their invoices through an insolvency event or protracted default, the insurance would cover those debts, mitigating the risk of bad debts.

“This dual approach was designed to not only generate significantly more cash for the business but also to provide a safety net against potential bad debts,” said Nigel. “It is the perfect combination for a fast-growing business and I’m really pleased we could deliver our solution and release the shackles that were holding this business back”.

The benefits of accelerated growth and increased protection

Since transitioning to Octet, the business has seen both immediate and longer-term benefits. With access to more than double the funding they had previously, the company now enjoys the financial flexibility to meet payroll, cover operational costs, and take on more work from existing clients. This has enabled them to expand services and secure larger contracts, leading to greater revenue opportunities.

“The inclusion of Buyer Protection has given the business peace of mind, as they no longer worry about clients going insolvent and leaving them with unpaid invoices,” says Nigel. “This added security has allowed them to focus on growth without constant cash flow concerns.”

Octet’s financial package not only provided more funding and better protection but also came at a lower cost than their previous financier, who offered no protection against bad debts. This improved cost efficiency has had a direct positive impact on the business’s bottom line.

With a solid financial foundation in place, the company is now positioned for sustainable growth and can confidently plan for the future.

Grow your business with Octet

The right working capital solution, paired with Buyer Protection, can transform a business’s ability to scale and thrive. When added to our Debtor Finance facility, Octet Buyer Protection safeguards your business from the misfortune of bad debts. For companies in industries such as labour hire, wholesale, manufacturing and other business-to-business based sectors, Octet offers tailored supply chain finance solutions designed to support growth, manage cash flow, and protect against financial risks.

Speak to our team of working capital specialists to see how we can power your business growth today.

Disclaimer: 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.

How to improve cash flow in your business

Posted on November 12, 2024February 16, 2025 by Russell Walsh

Maintaining a healthy cash flow in an unpredictable economic climate is crucial for business resilience. Doing so ensures your business can meet its financial obligations and seize growth opportunities, but improving cash flow in business can be a challenge in many industries.

In this article, we provide practical information on business finance to improve your cash flow, helping your company not only survive but thrive in these more difficult economic conditions.

How to control cash flow in business

Cash flow is the lifeblood of any business, representing the movement of money in and out of the company.

Sam Ralton, Octet’s Director of Working Capital Solutions, VIC, TAS, SA, explains, “The importance of cash flow is the ability to pay for goods and services when they fall due. Profit is a snapshot of how much money the company’s earned after expenses, but that doesn’t mean that the cash flow is in a healthy position.”

In fact, many companies confuse high profit with good cash flow. While the two are somewhat intertwined, improving cash flow in business is much more about forward thinking, planning and strategy.

“In a growing business, cash flow management gets increasingly harder because although you may have good margins and you’re making a profit, there’s a lag in time before that money is available to you, and therefore the cash flow runway is restricted,” Sam explains.

Cash flow runways and forecasts

A cash flow runway is the period a business can operate before it runs out of money. Having a clear understanding of your cash flow runway helps you plan and ensures the business can cover its expenses for a set period.

Cash flow forecasts are equally important as they predict future cash inflows and outflows, allowing businesses to prepare for potential shortfalls. “Cash flow forecasts are a good tool and indicator of when your business can pull certain growth levers or, conversely, restrict unnecessary spend,” says Sam. “They’re essential to ensure you don’t spend money today that you may need in the near future.”

So, what are some practical strategies for managing your business cash flow opportunities and issues?

6 simple strategies for improving cash flow in business

Review pricing structures: Ensure pricing covers your costs and desired profit margins. Regularly review and adjust prices to reflect market conditions.
Increase sales: Implement more layered brand marketing strategies and explore new markets and product verticals to boost revenue.
Control expenses: Regularly review expenses to identify and cut unnecessary costs.
Faster payment collection: Implement stricter payment terms and follow up on overdue invoices promptly using appropriate accounting software.
Inventory management: Utilise technology to maintain optimal inventory levels, reduce any holding costs and free up cash.
Supply chain management: Negotiate better terms with suppliers to improve cash flow timings. Where it makes sense for your business model, early payments can sometimes create opportunities to discuss discounts with appropriate suppliers.

Explore our recent article on managing cash flow strategies to find out more.

Business cash flow solutions for working capital finance

Working capital finance products like debtor finance (also known as invoice finance) and trade finance can significantly improve cash flow.

Debtor Finance cash flow benefits

Debtor finance provides an instant cash injection by unlocking funds tied up in unpaid invoices. This liquidity helps cover operational expenses, supplier payments and even fund growth opportunities.

Sam advises, “Debtor finance can give you the cash flow required upfront. So if you need funds earlier, you’ve got the certainty of borrowing against your invoices rather than waiting for those payments to arrive under the original terms.”

Businesses that access debtor finance can execute more effective financial plans by better managing cash flow fluctuations and the uncertainty associated with extended payment terms or delayed payments.

Unlike traditional loans, debtor finance requires no personal assets as security. This flexibility allows you to access funds when you need them, without risking valuable assets.

Trade Finance cash flow benefits

Trade finance offers substantial cash flow benefits by providing a tailored line of credit that bridges the gap between purchasing and selling goods. This funding solution ensures that businesses do not have to tie up their cash flow in inventory that takes weeks to arrive, process and sell.

By introducing a financial partner, such as Octet, into the supply chain, businesses can access funds to pay suppliers immediately, whether they are local or overseas. This enables the business to maintain healthy cash flow, as they can repay the credit facility over time rather than having their working capital tied up in these often lengthy transactions.

Because you can set a competitive exchange rate for the transaction upfront, trade finance can also safeguard against currency fluctuations. This supports smoother and more predictable financial management and helps increase your business’ purchasing power.

Where to go for business cash flow solutions

Implementing effective cash flow management strategies and leveraging working capital finance products can help you confidently navigate economic uncertainties. But staying on top of business cash flow and utilising these strategies and products can be a complex exercise, even for the most experienced of operators.

That’s why seeking professional advice is often a good idea. Financial planners, accountants, commercial finance brokers and business finance experts can all provide valuable insights and tailored solutions. For earlier growth stage businesses, it’s really important to consult widely in order to find the most suitable cash flow advice for your unique business circumstances.

Keep your cash flowing

Improving cash flow is essential for business stability and growth. At Octet, we’re here to support your business at every stage, offering expertise and financial solutions tailored to your needs. Our working capital products are designed to help businesses in all industries manage cash flow effectively.

Our team can provide guidance on leveraging innovative supply chain finance solutions and tools to maintain consistent cash flow, crucial for sustaining and growing your business in these challenging conditions.

Disclaimer: 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.

How to manage business growth for sustainable success

Posted on November 6, 2024December 2, 2024 by Russell Walsh

Managing business growth is a challenge many companies face. Whether your growth is planned or occurs rapidly due to external factors, handling it well is critical to ensuring long-term success. From maintaining cash flow to addressing skills shortages, businesses must implement strategies that support sustainable growth.

This article explores how to manage business growth effectively and address expansion challenges, particularly for businesses in rapid growth phases.

What is business growth?

Business growth refers to the expansion and development of a company, whether through increased sales, market share, assets or workforce. So whilst growth generally signifies a positive trajectory, its meaning can vary significantly among different organisations depending upon their objectives.

Working capital specialist Neil Tunstall is the Managing Director at Thane Commercial. He highlights that the motivations behind business growth can vary. “There are so many different factors that impact every business, and each one is different. What are the objectives of the owners? Are they looking to create a very successful large organisation, or are they more comfortable with slower and more gradual growth?”

Neil advises businesses to take a strategic approach to achieve sustainable business growth. “Make sure you are working with your advisors and accountants, and put intellectual effort into forecasting,” says Neil. “Don’t just say we’ll grow by 10%; it needs to be strategic.”

Managing sustainable business growth involves setting clear objectives, understanding market dynamics and collaborating with financial experts to create a well-informed growth plan that aligns with the business’s unique vision and goals.

So, why is growth important in business? Growth is essential because it can contribute to profitability, increased market share and more competitive advantage. It allows businesses to innovate, expand offerings and attract investment. Sustainable growth fosters resilience, helping companies adapt to market changes while enhancing their long-term stability and success.

What is a good percentage for business growth?

A good business growth percentage varies depending on factors like economic growth, industry, company size and maturity. For many companies, an annual growth rate of 10% to 15% is considered strong and a particularly good growth rate for small to mid-sized businesses.

How to sustain business growth

Managing business growth can indeed be a challenging endeavour. To ensure sustainable growth, adopting a clear and actionable framework is essential. The following steps are a roadmap for how to manage growth in business:

Set clear and achievable goals: Defining realistic objectives aligned with your business resources is crucial for maintaining focus. Neil says, “Businesses need to be looking two to three to four years out, creating a roadmap with forecasting that includes the right structures.” This foresight allows organisations to plan their growth trajectory strategically.
Train and develop your team: Equipping staff with the necessary skills to handle increased workloads and embrace new technologies is vital for sustainable growth. Neil says, “A big part of growth is looking at how businesses grow their staff or people, so they come along the journey with them.” Investing in your team ensures they are prepared to contribute effectively to the business’ expanding needs. It’s also important to extend the team to also include key advisors and business partners when necessary.
Leverage financial management tools: Effective budgeting and forecasting tools are essential for managing cash flow and growth capital. Neil says, “You’ve got to make sure that the business has the runway to meet its growing demands.” By using these tools, you can learn how to sustain growth in business and make informed financial decisions that support your growth objectives.
Invest in technology: Digital transformation is essential for business growth because technology enhances efficiency and productivity. Neil advises, “Businesses should visit industry expos and actively engage with industry bodies to see what their competitors are doing to keep up with technological advancements.” Embracing digital and technical transformation enables companies to adapt and innovate in a rapidly changing market. It’s also important to understand how digital marketing helps in business growth.
Manage your supply chain: Ensuring your supply chain can handle increased demand without bottlenecks is critical for sustaining growth. Neil stresses the importance of evaluating supplier relationships: “What are the terms we’re getting from suppliers? Do we have the right structures in place to grow and meet obligations as they fall due?” A robust supply chain management strategy is essential to effectively meeting customer demands. Knowing how customer experience drives business growth is vital.

By following these steps, businesses can create a solid foundation for sustainable growth.

Leveraging working capital finance

Achieving business growth requires adequate funding, and leveraging tailored working capital solutions can support expansion without straining cash flow. Octet offers several solutions that can help businesses navigate the complexities of growth while maintaining financial stability. Here are three to consider:

Trade Finance: This form of working capital finance helps businesses manage cash flow during expansion by accelerating their supply chain and payment terms. Neil emphasises the benefits of trade finance, saying, “With Octet’s Trade Finance, businesses have the capacity to fund their full trading cycle, ensuring sustainable growth.” By providing immediate capital for inventory purchases and operational expenses, trade finance can bridge the gap between cash outflows and inflows, enabling businesses to seize growth opportunities
Debtor Finance: By unlocking cash tied up in unpaid invoices, debtor finance (also known as invoice finance) offers businesses immediate liquidity to fund growth operations. Neil notes that Octet’s Debtor Finance product is designed to be low-touch for clients: “This allows them to plan growth over the next 12 to 18 months without constantly revisiting credit approvals.” By accessing funds tied up in outstanding invoices through debtor finance, businesses can alleviate cash flow constraints and invest in initiatives that drive expansion.
Term Loan: Octet’s Term Loan is designed to help businesses secure the funds they need to grow. Available with flexible terms ranging from three months to three years, this loan allows businesses to borrow up to $2 million. It’s tailored for both short-term needs, such as bridging cash flow gaps, and long-term investments, like expanding operations or purchasing equipment. With a fast approval process and competitive rates, businesses can manage their finances with greater control and predictability.

Integrating these financial products into a comprehensive business growth framework can help overcome common business growth barriers and navigate the advantages and disadvantages of business growth. This allows companies to thrive and expand in today’s competitive market.

Learn more about how to maintain business growth with Octet

Sustainable business growth is achievable through strategic planning, team development and the effective use of working capital finance. By partnering with Octet, businesses can access the financial support necessary to navigate the key challenges of business growth and capitalise on opportunities, ensuring a thriving and sustainable growth trajectory.

Neil Tunstall is the Founder and Managing Director at Thane Commercial with over 40 years expertise in the banking and finance industry. Specialising in working capital solutions, Neil has built a reputation for delivering strategic financial services, particularly in debtor and trade finance.

Disclaimer: 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.

How debtor finance and a term loan fuelled growth for an infrastructure services specialist

Posted on October 18, 2024October 30, 2024 by Russell Walsh

A specialist in providing essential safety resources for rail infrastructure projects, our client has grown rapidly since its inception in 2019, expanding its workforce nationwide. Despite impressive revenue growth in its initial four years, the business faced significant cash flow challenges due to aged receivables and the impact of the pandemic. With mounting financial pressure threatening its expansion, the company turned to a commercial finance broker, who introduced them to Octet and its tailored working capital solutions.

Cash flow strains amidst rapid expansion

The company’s business model, operating on an hourly rate structure across multiple sites, required a sizable workforce to ensure the safety and smooth operation of large infrastructure projects. While their growth was impressive, it also created significant financial strain. A growing number of debtors and aged receivables were tying up the business’s cash, causing shortages and limiting their ability to reinvest in new projects.

The economic disruptions caused by the COVID-19 pandemic only worsened these challenges, with significant expenditures and disruptions leading to losses during 2020 and 2021. Despite their revenue growth, the business was running on tight margins, with an urgent need to access cash to fuel further expansion.

They had been working with a previous financier, but the relationship was costly and too rigid for the company’s growing needs. As cash flow issues persisted, it became clear they needed a more flexible and affordable financial solution.

A tailored working capital package

At this critical juncture, the company turned to their trusted commercial finance broker for advice. With years of experience helping businesses navigate financial challenges, the broker quickly identified that the business’s cash flow problems stemmed from their aged receivables and restrictive financing terms. The broker suggested exploring financing options with Octet, a specialist in providing tailored working capital solutions.

Octet assessed the business’s needs and offered a comprehensive financing solution.

“We were able to tailor a facility that included a $12 million debtor finance facility, which allowed the business to release cash tied up in unpaid invoices, providing immediate working capital for ongoing operations,” said Dan Verdon, Octet’s Director Working Capital Solutions – NSW.

Octet also provided a $100,000 trade finance facility to support the company’s operational needs and a $400,000 term loan to refinance the fleet of vehicles, previously financed by another lender.

With Octet’s flexible financing terms, the company was able to eliminate the restrictive 10% holding limit from its previous lender and gain access to better pricing. “This provided the business with the financial room to reinvest in its operations, complete ongoing projects, and continue expanding its workforce,” added Dan.

Cash flow freedom for future growth

The impact of Octet’s working capital solution was immediate. By unlocking cash flow tied up in receivables, the business was able to pay suppliers on time, meet payroll obligations for its large workforce, and continue bidding for new projects. The trade finance facility helped cover operational costs without depleting their working capital reserves, and the term loan for asset finance ensured their vehicle fleet could continue supporting projects nationwide.

“The combination of the facilities we structured provided the business with a solid financial foundation, allowing management to focus on their core operations without worrying about cash flow gaps,” explained Dan.

The streamlined financial solution also freed up valuable time for long-term strategic planning and growth initiatives.

With the broker’s expert advice and Octet’s support, the business is now well-positioned to continue expanding its safety services across major infrastructure projects in multiple states. Their newfound financial stability, combined with a strong company culture focused on employee well-being, has allowed them to reinforce their presence in the industry and remain a key player.

Grow your business with Octet

Via our Referral Partner Program, Octet empowers businesses across a range of industries, including labour hire, transport and construction, offering innovative Debtor Finance and Trade Finance working capital solutions.

Speak to our team of working capital specialists to see how we can power your business growth today.

Disclaimer: 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.

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5 strategies to secure the best business loan for your SME

1. Make sure you have robust financials and projections

2. Work with a business finance broker

3. Negotiate to secure the best business loan terms

4. Explore non-bank lenders for more flexible business finance

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H2: Finding the right fit for your business essential

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Don’t wait for a cash flow crisis

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