Trade Finance Archives

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.

8 cashflow management strategies for franchisees

Posted on October 1, 2025 by Russell Walsh

Cash flow is one of the most persistent operational challenges for Australia’s 94,000 franchise owners.

No matter whether you’re opening your first location or managing a network of established sites, ongoing royalties, marketing fees, supplier payments, rent, and day-to-day operating costs like wages and utilities, the outgoings of a franchise can often outpace incoming revenue.

We explore eight practical strategies to help franchisees take control of their cash flow and build financial resilience.

The complex costs of running a franchise

Managing cash flow for a franchise isn’t just about balancing sales with supplier payments – it’s shaped by a web of recurring fees and operational outgoings. These typically include:

Upfront investment: Franchise buy-in fees, fit-out costs, and initial stock purchases.
Royalties: Often set as a percentage of your profits.
Marketing and advertising fees: Mandatory contributions to national or regional campaigns.
Operational expenses: Wages, utilities, insurance, compliance requirements, and local marketing.
Rent: Often one of the largest, fixed and ongoing franchise costs.
Maintenance or property upgrades: Essential for maintaining brand standards.

These fixed and variable outgoings can place a constant drain on cash flow. Even the strongest-performing franchises can experience short-term liquidity pressures, making flexible access to capital an important part of financial planning.

8 strategies for managing your franchise’s cash flow

Strong cash flow management also comes from consistent, proactive operational practices. These strategies can help you stay ahead of potential challenges and build a more resilient business.

1. Build and a cash flow forecast

A detailed financial forecast helps you anticipate shortfalls and plan accordingly. It’s particularly valuable in the early stages of a franchise, when startup costs are high, so you can keep enough cash on hand to keep operations running smoothly. It’s crucial to review and update your forecast regularly, you can spot potential problems early and take corrective action before they escalate.

2. Plan for seasonal fluctuations

Use your forecast to identify seasonal fluctuations and set aside reserves in high-revenue months to cover expenses during slower times. This forward planning helps avoid cash shortages and keeps your business financially stable year-round.

3. Manage your inventory efficiently

Avoid overstocking, which ties up valuable cash, and use “just-in-time” ordering where possible to keep inventory lean. Regularly review sales data to identify slow-moving items and adjust purchasing to match demand.

4. Optimise your staffing levels

Wages are often one of the largest ongoing expenses for franchisees. Use smart rostering tools to match staff hours to customer demand, reducing unnecessary labour costs while maintaining service quality.

5. Negotiate supplier terms

Work with suppliers to secure favourable terms, such as extended payment deadlines, bulk-purchase discounts, or rebates. Trade finance can be an effective tool to increase your purchasing power and take advantage of supplier offers.

6. Control operating expenses

Regularly review costs such as utilities and insurance to ensure you’re getting value for money. Cutting or renegotiating even small recurring costs can add up to significant annual savings.

7. Maintain a cash reserve

Keeping a modest buffer allows you to cover unexpected expenses – like equipment breakdowns or sudden increases in supply costs – without disrupting your operations.

8. Leverage working capital solutions

Even with the best planning, there will be times when expenses and revenue fall out of sync. Having access to a flexible working capital facility gives you the breathing room to manage short-term cash flow gaps without derailing operations or growth plans.

How working capital solutions can help franchisees

When expenses and income don’t align, flexible working capital solutions can provide fast access to funds for supplier invoices, payroll, tax liabilities, equipment repairs, or other operational needs – helping franchisees avoid disruptions and keep the business running smoothly.

Beyond bridging short-term cash gaps, these solutions can enable franchisees to take advantage of supplier discounts for early payment, bring on extra staff during busy periods, or fund expansion.

Having funding available when it’s needed allows franchise owners to focus on building their business, responding to market opportunities, and maintaining high service standards – without being held back by short-term financial pressures.

Keep your franchise running smoothly

Octet’s working capital solutions, such as a line of credit with flexible repayment terms, can help franchise businesses and their franchisees with cash flow management, ensuring they are well-positioned to seize growth opportunities.

If you manage a franchise network, or you’re a franchise owner, and want to learn more about how we can help, get in touch with the team 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.

US removes key import exemption: What it means for Australian exporters

Posted on September 23, 2025 by Russell Walsh

Australian businesses are under renewed pressure after the US removed a long-standing import concession used by retailers: the de minimis exemption, which had allowed low-value goods to enter the US duty-free.

Since the 10% tariff on most Australian exports came into effect in April, shipments to the US had dropped by 36%. Now, with the removal of the de minimis exemption – allowing goods valued under US$800 to enter the US without import duties – many small and mid-sized businesses are facing a double blow.

While the US has framed the change as a crackdown on Chinese e-commerce giants like Temu and Shein, the reality is many Australian businesses – particularly in the e-commerce retail space – are being hit by the changes.

US tariffs and de minimis rule changes placing renewed pressure on Australian retailers

The removal of the de minimis exemption had immediate repercussions for Australian retailers, who collectively exported $23.8 billion of merchandise goods to the US in 2024.

“There’s been a 36% drop in volume since April in terms of outbound shipments from Australia to the US,” Shippit CEO Rob Hango-Zada told the ABC. “All the tariff changes – and more specifically the de minimis change – have meant that retailers have had to pull back from the US market.”

Australia Post temporarily suspended shipments over AU$150 to the US, leaving retailers unable to fulfil orders. According to the Department of Foreign Affairs and Trade (DFAT), the impact is likely to fall hardest on e-commerce retailers shipping goods that previously qualified for the exemption.

While Australia Post has since resumed sending packages to the US, retailers face other new logistical challenges. Every parcel shipped to the US is now subject to inspection, increasing delays at the border. Some businesses have already paused US sales entirely while they figure out how to respond.

The Australian Government says it is continuing to work closely with Australia Post, Australian Border Force and the US Customs and Border Protection to “assess the impacts on Australians and Australian businesses”.

For Australian businesses exporting to the US, navigating this new environment will likely require a new approach.

Six ways to adapt your export strategy in response to US tariffs

DFAT has advised businesses impacted by the tariffs to think about overhauling their supply chains and exploring new markets. “With rising costs and potential tariff hikes, exporters should consider alternative markets to maintain profitability and reduce exposure to US trade policy shifts,” says DFAT.

DFAT has advised businesses impacted by the tariffs to consider the following:

consider reassessing their pricing and logistics strategies
watch for updates from Austrade, Australia Post, the state governments and the US Customs and Border Protection
hold stock in the US by setting up with a third-party logistics (3PL) warehouse
set up with a distributor
do bulk consolidation – hold orders and do a weekly shipment to the US with many orders in one shipment
amend invoice terms

These adjustments will likely require businesses to invest upfront, whether shifting manufacturing away from China, setting up fulfilment infrastructure offshore, or managing longer cash conversion cycles due to shipping and compliance delays.

That’s where tailored working capital solutions will be critical. Trading internationally always comes with an element of risk – from payment delays to currency fluctuations and credit exposure. Trade finance helps reduce that risk, while unlocking the capital needed to make strategic moves like exploring new markets. It can also streamline cross-border payments, with the ability to pay suppliers in over 72 countries, across 15 currencies.

For Australian exporters, flexibility will define the next phase

The removal of the de minimis exemption and the broader return to tariff-heavy U.S. trade policy have created a challenging new reality for Australian exporters. Businesses that once relied on low-cost parcel shipping are now facing added costs and delays, coupled with a continuing sense of uncertainty about what will change next.

What’s clear is that agility matters more than ever. In this new environment, access to flexible capital won’t be just a nice-to-have for many businesses – it will be a key enabler of timely action. Trade finance gives businesses the confidence to act, helping them manage international risk and shift into new markets without cash flow holding them back.

Challenges in global supply chains are only likely to intensify. Businesses that proactively invest in robust supply chain strategies can safeguard their operations and position themselves for sustainable growth.

Octet’s innovative supply chain financial solutions provide the flexibility and support for Australian retailers to navigate supply chain management issues and challenges, strengthen supplier relationships and optimise cash flow. Get in touch to discover how we can help power your business.

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.

Powering growth for a construction specialist with trade finance

Posted on August 18, 2025September 1, 2025 by Russell Walsh

A well-established civil construction firm in Victoria was facing the classic challenge that constrains many businesses in the building and construction sector – the constant tension between upfront capital requirements and unpredictable cash flow cycles.

Despite nearly 25 years of operation and a solid reputation for delivering emergency infrastructure solutions, the company found itself limited by working capital constraints that were preventing it from capitalising on growth opportunities.

Specialising in underground electrical works and traffic management, the firm had built a strong market position through the consistent delivery of critical infrastructure projects. But, like many construction businesses, they were caught in the familiar cycle of needing significant upfront investment before any revenue flowed in, creating ongoing pressure on their working capital reserves.

When growth is held back by cash flow timing

The construction firm’s biggest obstacle wasn’t winning work – it was funding it.

The substantial upfront investment required for each new project before any revenue materialised created a cash flow squeeze that made it increasingly difficult to take on multiple projects simultaneously or pursue larger opportunities.

Every new contract meant immediate outlays for materials, equipment, and labour, while payment cycles stretched weeks or months into the future. This timing mismatch between costs and revenue was preventing the company from scaling its operations effectively.

The situation was made more challenging by rising costs across the industry. Labour and material prices were climbing, squeezing margins and making efficient cash flow management even more critical. Meanwhile, seasonal fluctuations in project demand added another layer of uncertainty to financial planning.

“We had the skills, the reputation, and the market demand,” the business owner explained, “but we couldn’t scale because every new project required cash we didn’t have upfront. It was like being successful was actually holding us back.”

The company’s ambitions extended beyond just taking on more work. They wanted to invest in new technology, expand into different geographical markets, and upgrade equipment to stay competitive. But these strategic investments were out of reach while working capital was tied up in project cycles.

Octet’s strategic approach to construction industry challenges

When a commercial finance broker introduced the firm to Octet, the team immediately recognised the specific challenges facing construction businesses. Rather than offering a standard financing solution, Octet’s Director of Working Capital Solutions Vic/Tas/SA, Sam Ralton, took time to understand the unique cash flow patterns and growth objectives of the business.

“Construction companies operate in a challenging financial environment,” Sam explained. “They need substantial capital upfront but often wait months for payment. Traditional financing doesn’t always align with these cycles, which is why we focus on solutions that work with the industry’s realities.”

After a thorough assessment, Octet structured a $1 million Trade Finance facility designed specifically to break the cash flow bottleneck. Unlike traditional loans that add to long-term debt, the Trade Finance facility provided immediate access to working capital tied up in the construction cycle.

“The beauty of trade finance for construction businesses is that it addresses the fundamental timing mismatch between costs and revenue,” said Sam. “Instead of waiting for one project to pay before starting the next, businesses can access the capital they need to maintain momentum.”

The facility was structured to provide maximum flexibility while minimising risk. It enabled the company to fund multiple projects simultaneously, make early supplier payments to strengthen relationships, and pursue strategic investments without compromising its balance sheet.

Breaking through barriers with strategic working capital

The results were immediate and far-reaching. With the Trade Finance facility in place, the construction firm could finally pursue the growth opportunities they’d previously been forced to decline. Larger contracts became viable, and the company could confidently tender for projects that would have stretched their resources too thin.

One of the most significant changes was the ability to invest in technology and equipment upgrades. These investments enhanced operational efficiency and opened doors to new types of projects, creating a positive cycle of capability improvement and market expansion.

“The transformation has been remarkable to watch,” noted Sam. “This business went from being constrained by cash flow to being able to make strategic decisions based on market opportunity rather than available cash. That’s a fundamentally different way of operating.”

The improved cash flow also strengthened the company’s position with suppliers. Early payments led to better terms and stronger relationships, while the ability to purchase materials without delays improved project delivery times and customer satisfaction.

Perhaps most importantly, the facility provided the financial foundation needed to expand into new geographical markets. The company could now pursue opportunities across Victoria and beyond, diversifying its revenue base and reducing dependence on local market conditions.

Supporting construction growth with Octet

The construction industry’s unique financial challenges require solutions that understand the sector’s specific needs.

Octet’s Trade Finance facilities are designed to unlock the working capital that construction businesses need to grow sustainably, whether they’re dealing with upfront capital requirements, seasonal volatility, or growth ambitions that outpace current cash flow.

For businesses ready to break through the barriers that constrain construction growth, Octet’s working capital specialists can structure solutions that align with your industry’s realities and support your strategic objectives.

Speak to our team of working capital specialists to see how we can power your construction 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.

Planning for business growth? How to use the new financial year to your advantage

Posted on July 7, 2025August 14, 2025 by Russell Walsh

For many Australian businesses, the new financial year is time for a strategic reset. Plans are sharpened, budgets are locked in, and appetite for growth surges. In fact, nearly two-thirds of SMEs are targeting growth in the year ahead, according to CommBank, buoyed by optimism around potential rate cuts and easing economic pressures.

“At the start of the financial year, attention shifts to investment,” says Nick Rowlands, Director of Chase Finance. “With fresh financials and forward-looking projections, businesses are in a prime position to plan proactively – whether that’s buying stock, ramping up operations, funding international trade or launching new initiatives.”

Funding solutions like invoice finance (also known as debtor finance) and trade finance become especially valuable at this time of year, adds Tony Fimeri, Commercial Manager at Chase Finance. “You’ve got the flexibility to plan without tax deadlines hanging over you and secure capital that supports long-term growth.”

In this article, Nick and Tony share why a new fiscal year is a smart time for SMEs to secure growth-ready funding.

From reactive to strategic – the case for early planning

As businesses shift into growth gear, lender confidence lifts.

“It aligns funding applications with annual planning, fresh opportunities, and a clean set of financial reports,” says Nick. “Lenders are more confident approving facilities off the back of freshly lodged financials. It’s also when businesses are updating their budgets and forecasts – clear signs of planning and intent.”

Yet many SMEs still fall into reactive patterns when it comes to finance. “They wait until a cash flow crunch or a tax bill before seeking funding,” says Nick. “That panic mode reduces options, pushes up costs, and adds unnecessary pressure.”

This can see businesses missing out on growth opportunities during peak periods because they’re chasing documents, approvals, and deadlines.

Instead, Nick encourages business owners to view finance as a strategic tool rather than a quick fix. “Planning early – with forecasts, working capital analysis, and pre-approvals – is often a low or no-cost exercise. To secure the best deal you need to be organised.”

How working capital finance can power early-year growth

Whether it’s trade finance to unlock supplier deals or invoice finance to speed up cash inflows, early access to funding gives businesses an edge.

“Securing working capital finance at the start of the financial year provides the cash flow flexibility to move fast – without tapping into reserves or waiting on payments,” Tony explains.

That agility matters. Many industries – agribusiness, construction, transport and logistics, food and beverage, and retail – see demand spike in the first half of the financial year, as the weather heats up and the holiday season approaches. “Finance allows you to stock up early, negotiate better deals, and get ahead of competitors,” says Tony.

“It gives you the ability to pivot – hire staff, boost production, change suppliers – without delay. And when you can pay upfront or early, it improves your trade terms and strengthens supplier relationships. That can even reduce your cost of goods.”

Invoice finance, he adds, is particularly effective for ongoing liquidity. “It frees up funds tied in invoices, giving you immediate capital to reinvest in the business.”

Business finance with foresight

If your business is planning for growth this year, timing matters.

“Securing finance at the beginning of the financial year lets businesses monitor cashflows monthly instead of scrambling at the end of the year,” says Nick. “It enables businesses to build long-term strategies – diversifying, expanding, or entering new markets – without having to scramble at year-end.”

Whether it’s an invoice finance facility to accelerate cash inflows or a trade finance line of credit to support purchasing, proactive business funding can be the difference between constrained operations and confident growth, says Nick, putting your business “in a prime position to leverage early-year opportunities.”

Power your growth with Octet

Planning for growth this financial year? Octet’s flexible working capital solutions, including Invoice Finance and Trade Finance, are designed to align with your growth strategy to optimise cash flow and seize opportunities.

Talk to our working capital finance experts today and we’ll help you find the best option to accelerate your 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.

What tariffs on Australian exports mean for trade, currency, and confidence

Posted on May 29, 2025 by Russell Walsh

As the United States implements its new protectionist trade policies and China races to offset export pain with internal stimulus, the global trade map is shifting fast – and businesses are bracing for the impacts on Australia.

But an expert on the markets says “it’s not as doom and gloom as the papers make out” when it comes to the tariffs. Peter Dragicevich, Currency Strategist (APAC) at Corpay, notes that, while “there are headwinds, there are offsets, too.”

Peter acknowledges uncertainty still looms large, but notes conditions on the home front are gradually improving, with interest rates easing and targeted federal support available for trade-exposed sectors.

For businesses navigating international trade, these shifts in decades-long norms may require new approaches. But they also present opportunities – for those willing to grab them.

Tariffs on Australian exports: The pros and cons

While the imposition of a 10% tariff on Australian exports does add pressure for some sectors – notably beef, gold, and pharmaceuticals – the broader picture is more muted. Even for affected sectors, it’s likely exporters will be able to find new markets, says Peter.

“If there’s less demand in the US because of high prices, those products could be redirected into other countries where the supply would be absorbed,” notes Peter.

At the same time, China – Australia’s largest trading partner, making up 32% of our total exports – is investing in its own economy, ramping up construction and infrastructure development. Peter says that could be a boon for Australian commodities like iron ore, Liquefied Natural Gas (LNG) and coal.

“If the Chinese authorities are trying to stimulate their domestic economy to offset the tariff pain, that’s actually a net offset for Australia,” Peter says.

Australian dollar forecast 2025: Will the AUD strengthen?

Few areas of the economy reflect global uncertainty more directly than the dollar. In 2025, the Australian Dollar (AUD) has already swung widely in response to global disruption – including its largest single-day drop in 15 years.

“The Aussie’s traded in a very wide range this year, and that’s a function of what’s happening offshore, not domestically” says Peter. He notes the volatility is unlikely to fade in the short term, with markets continuing to react sharply to trade deal announcements and political rhetoric.

“We will see more bursts of volatility coming through over the next couple of quarters, particularly before more definitive trade deals are struck,” Peter explains. “You’re one tweet away from things just kind of unwinding very sharply.”

Still, the broader trajectory could work in Australia’s favour. As China and Europe look to stimulate growth internally and the US economy slows, the Australian dollar may strengthen. Peter expects the AUD to trend upwards towards the high 60s or even low 70s against the US dollar over the next 12–24 months.

He also points out that, historically, the AUD is still below its long-term norm. “The average for the Aussie since it floated in the 1980s is 75c. Right now we’re still below where purchasing power parity suggests it should be,” says Peter. “From a business perspective, it’s about hedging your risk and hedging your exposure.”

Risk, resilience and preparing for global trade uncertainty

For Australian exporters, the next year won’t be without challenges – but those that act decisively will be best placed to thrive.

“There’s a lot of push-pull factors people need to consider, but overall, the main economic hit to Australia won’t be overly large,” Peter concludes.

Combined with lower interest rates and zero-interest government loan facilities for affected exporters, there’s growing potential for cautious optimism. But seizing that opportunity requires more than waiting for conditions to improve – it means taking action now to manage exposure and maintain control.

In this environment, Trade Finance isn’t just a safeguard – it’s a smart strategy. It empowers businesses to reduce uncertainty, unlock working capital, and move forward with confidence.

Whether it’s Trade Finance, cross-border payments in collaboration with Corpay, or our market-leading supply chain technology, Octet gives Australian businesses the tools and support to trade smarter – whatever the economic outlook. Talk to us today about how we can help your business.

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.

Financing business growth: 3 ways Trade Finance can help SMEs scale

Posted on May 21, 2025May 22, 2025 by Russell Walsh

Despite a background of economic uncertainty, more than half of Australian small and mid-sized enterprises (SMEs) plan to invest in growth this year, according to research by NAB.

But optimism alone doesn’t drive expansion. Businesses looking to scale or enter new markets need access to reliable funding. For growth-focused businesses, Trade Finance can be a tactical tool to enable faster business growth.

“Every business wants to grow,” says Sam Ralton, Director of Working Capital Solutions VIC, TAS, SA at Octet. “It’s really a matter of whether they want to grow quickly or take their time. If they’re looking to scale faster, Trade Finance can help them do just that.”

Using trade finance to strengthen your business financing strategy

While many businesses see Trade Finance as a short-term solution they can use to bridge temporary cash flow gaps, it can also be a powerful tool for funding business growth, allowing businesses to seize opportunities without draining their cash reserves.

From increasing purchasing power to de-risking expansion and managing external shocks, here are three ways Trade Finance can support your business growth.

1. Accelerate business growth by unlocking your purchasing potential

For importers and exporters, growth often hinges on how quickly they can secure and sell stock. The slower the cycle, the more capital gets trapped in inventory. Trade Finance unlocks the ability to act earlier and at greater scale.

“You’re multiplying your purchasing power – and that speeds up growth,” said Sam. “You’re not waiting for sales to free up cash, which means you can capture opportunities you might have missed.”

It’s not just about volume, either. Faster procurement can help you secure in-demand stock ahead of competitors, as well as improving supplier relationships and securing early payment discounts.

2. Use Trade Finance to enter new markets with confidence

Entering a new product category or geographic market often means laying out capital before revenue is guaranteed.

Many businesses remain concerned about the impacts of the US tariffs and trade tensions with China, but despite the recent softening, the risks of market expansion will never completely disappear, notes Sam. He adds that Trade Finance can help businesses test demand without overcommitting.

“If you’ve done your forecasting and calculations, and understand the markets you’re entering, Trade Finance can absolutely help you enter a new market faster.”

This kind of agility is especially valuable in uncertain or fast-moving sectors, where the timing of a market entry can determine its success. By using Trade Finance to fund an initial wave of stock or supplier agreements, businesses can assess early performance and scale their commitment accordingly.

3. Financing strategies to navigate cost and supply chain risks

Trade Finance also offers advantages in today’s unpredictable market conditions. When tariffs shift, interest rates rise or global shipping delays threaten supply chains, being able to act early can protect margins.

While some businesses prefer to wait out the uncertainty, others are using finance to secure goods now, at today’s prices, says Sam. “If you think costs are going to rise, then securing good pricing now becomes possible with Trade Finance.”

“There’s always going to be uncertainty,” Sam notes. “You can think the world’s going to end, but you still have to go out, buy goods, sell them, and keep moving. You can panic and do nothing – or you can just keep trying to grow your business.”

Proactive business financing strategies for faster growth

In an uncertain economy, it’s often the ability to act decisively that separates high-growth businesses from the rest.

For SMEs with solid forecasting and a clear strategy, Trade Finance can be an enabler of growth – not just a financial safety net. “It’s about being proactive with your finance,” says Sam. “Structuring your business so you can grow quicker, rather than waiting.”

Instead of relying solely on retained earnings or reacting to financial pressure, businesses can use Trade Finance as a tool to support expansion and respond to opportunities as they arise. When growth is the goal, waiting for organic momentum to build may mean missing the moment.

Power your growing business

Scaling your business in 2025? Octet’s flexible working capital solutions can align with your growth strategy to optimise cash flow, fund global supplier payments and seize opportunities. Talk to our supply chain finance experts today and we’ll help you find the best option to accelerate your business 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.

Trade Finance accelerates cash flow and growth opportunities for Australian Photo Supplies

Posted on May 7, 2025May 8, 2025 by Russell Walsh

Australian Photo Supplies (APS) is a leading distributor of photo imaging products across Australia and the Pacific Islands, serving commercial printing labs, retailers, and wholesalers. Established in 1992 and headquartered in Victoria, APS has expanded its offerings to include a diverse range of products such as instant cameras, corporate packages, passport photo solutions, and commercial printers. The company’s commitment to providing efficient supply chain solutions has been key to its growth.

During the COVID-19 pandemic, APS’s largest buyer reduced orders, affecting cash flow and inventory management. With declining sales, APS struggled to balance operational costs, maintain supplier relationships, and manage cash flow. As the pandemic subsided, buyers very quickly returned to larger orders, presenting a new challenge: meeting demand without compromising financial stability.

Managing cross-border payments and cash flow

To meet the rapidly increasing client demand, and achieve their growth objectives, APS needed a finance solution to optimise payments to overseas suppliers and improve cash flow. In their search for effective payment options APS discovered Octet, and after assessing their requirements, applied for OctetPay.

“OctetPay provided us with a great solution for paying our invoices using credit cards while benefiting from competitive foreign exchange (FX) rates,” explains Joe Tresckitta, CEO and Director at APS Logistics Group. “This made our supplier payments more efficient.”

However, with increasing stock requirements and larger orders, APS needed more tailored financing to handle cash flow challenges and delayed payments.

Australian Photo Supplies headquarters in Somerton, Victoria

Tailored Trade Finance to optimise cash flow and support growth

“After reviewing APS’s needs, it became clear that a working capital solution, such as Trade Finance, would be a better fit to support their business in the long term,” says Jack Ahdore, Business Development Executive at Octet.

Trade Finance provides a flexible line of credit to power international and domestic trade transactions. This facility offers:

from $100,000 up to $12 million in credit
repayment terms up to 120 days, including up to 60 days interest-free
the ability to pay suppliers in 72 countries at competitive FX rates in 15 currencies
easier management of payment delays, currency fluctuations, and credit risks

Octet structured a tailored $300,000 secured Trade Finance facility, designed to help APS accelerate both domestic and international transactions. The facility offered several benefits that directly addressed their requirements:

- ✓Improved cash flow: Immediate funding for overseas suppliers kept cash in the business
- ✓Mitigated currency fluctuations: Competitive FX rates helped APS avoid losses due to exchange rate fluctuations
- ✓Provided growth opportunities: Freeing up cash allowed them to reinvest in areas such as expanding product lines and growing the APS Logistics Group (warehousing and distribution arm of the company)

By ensuring timely payments, the Trade Finance facility enabled APS to maintain strong relationships with overseas suppliers, with the potential to secure preferential terms and priority stock availability.

“This reliability allowed us to avoid stock disruptions and meet customer demand quickly, giving us a competitive edge,” notes Joe.

Joe Tresckitta, CEO & Director of APS Logistics Group, says Octet working capital solutions give his business a competitive edge

Empowering Australian businesses with flexible Trade Finance solutions

“With tailored finance and competitive FX rates, APS was able to streamline international transactions, strengthen supplier relationships, and scale its operations effectively,” adds Jack.

For businesses like APS that rely on international suppliers, managing cash flow is crucial. Octet’s Trade Finance facility offers a flexible and secure solution to optimise payments, reduce financial risks, and support business growth. It also helps to accelerate cash flow in your business.

To discover whether Trade Finance is the right solution for your business, talk to us today and we’ll help you find the best option to accelerate your business growth.

For further information on Australian Photo Supplies products and services, visit australianphotosupplies.com.au

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 Trade Finance can help businesses navigate supply chain volatility

Posted on April 11, 2025April 12, 2025 by Russell Walsh

Global supply chains have never been more unpredictable. From industrial disputes and global trade tensions to climate-related events like Queensland’s recent Cyclone Alfred – which temporarily closed the Port of Brisbane and disrupted shipping routes nationwide – Australian importers are facing uncertainty on a day-to-day basis.

Around 47% of Australian businesses see themselves as vulnerable to supply chain disruptions, found research by NAB, with rising raw material costs (71%), upstream supply issues (70%) and the need to meet customer expectations quickly (67%) being key challenges. The top five industries most affected by supply chain disruptions include retail trade, food and beverage, wholesale trade, manufacturing and construction, according to NAB.

“Australia is heavily reliant on imports. There’s so much going on globally that impacts us – from ships getting stuck in the Suez Canal to massive disruptions caused by weather events,” says Joshua Richards, Director at Twin Peaks Finance. “Longer lead times and increased costs mean businesses need support, and Trade Finance is the natural solution.”

Why supply chain volatility isn’t going away

The assumption that supply chains are stable has been completely upended in recent years. Many businesses underestimated just how fragile global logistics could be until COVID-19 brought much of the system to a halt.

“Pre-COVID, everyone thought the system was rock solid. You’d buy from China and, three weeks later, your goods were here,” says Rudy Messerschmidt, Director of Working Capital Solutions, QLD at Octet. “But now, businesses are often facing delays at almost every step. It depends on where the disruption hits, but it can blow out your lead time from six weeks to twelve or more.”

McKinsey found that, once companies experience a supply chain disruption, it takes an average of two weeks to plan and execute a response, leaving many businesses exposed to costly delays.

Businesses are facing added complexity, as some suppliers are disappearing altogether, notes Joshua. “That forces business owners to find new suppliers, bringing a whole new set of challenges.

One of those challenges is sourcing from countries businesses hadn’t worked with before COVID-19. While diversification is smart in an uncertain market, it often requires navigating unfamiliar regulatory environments and payment terms – placing further pressure on working capital and impacting business agility.

Building financial resilience through Trade Finance

The risks of supply chain disruption are particularly acute for SMEs, with Australian business confidence reducing in February despite a reduction in interest rates. Fewer Australian businesses feel they could weather the loss of a major supplier or client without financial damage, believing such a loss would put them at risk of insolvency.

The findings underscore just how fragile supply chains remain for many businesses – and why robust financial strategies are essential.

In this landscape, Trade Finance has become an indispensable tool for managing uncertainty. “Trade Finance helps protect the whole system. Businesses face risk at every stage of their supply chain, and Trade Finance takes some of that risk out of the equation,” says Rudy.

“One thing that’s constant in business is that nothing is constant,” notes Joshua. By unlocking working capital tied up in inventory or goods in transit, Trade Finance gives businesses the flexibility to plan ahead.

Proactive finance for proactive supply chain management

For Australian businesses navigating global and local market uncertainty, Octet Trade Finance is more than just a funding tool. It’s a way to manage risk and seize new opportunities in a volatile market.

Trade Finance unlocks working capital tied up in international and domestic trade, enabling businesses to stay responsive in the face of delays and disruptions. As a buyer, you can pay suppliers upfront and repay later. As a seller, you get paid faster – keeping your cash flow healthy and operations moving.

But resilience isn’t just about liquidity – it’s about control. In a period of economic instability and ever-changing exchange rates, Trade Finance can also safeguard against currency fluctuations with upfront FX transparency and locked-in, competitive rates.

Security is another key piece – particularly when navigating the complexities of working with new suppliers in unfamiliar markets. Global trade introduces a host of risks, from data exposure to payment fraud, making robust security and compliance measures essential. Increasingly, businesses are turning to digital supply chain platforms that offer built-in safeguards and full transactional visibility – helping them monitor every step, from procurement to payment.

“Australia is a heavy importing nation,” says Rudy. “As long as we’re importing a substantial portion of what our consumers consume, we’re going to need this kind of funding and security.”

Your global supply chain partner

Octet’s innovative working capital solutions provide the flexibility and support to navigate supply chain management challenges, strengthen supplier relationships and optimise cash flow. Our Trade Finance and intuitive Supply Chain Platform help businesses across a range of industries build resilience in an unpredictable environment.

Get in touch to discover how we can power your business.

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.

Trade Finance helps toy retailer overcome seasonal cash flow challenge

Posted on February 18, 2025February 20, 2025 by Russell Walsh

For any retailer, especially an online toy store, the festive season is both a major opportunity and a significant challenge. This was the situation one rapidly growing Australian toy retailer experienced. With a sharp increase in customers rushing to purchase the latest toys, cash flow pressures threatened their ability to make the most of this key time of year.

The solution came in the form of working capital finance from Octet. This strategic partnership not only helped the retailer manage cash flow during one of their busiest periods but also laid the foundation for future growth.

Cash flow struggles due to seasonal demands

Like many online retailers, this business faced seasonal cash flow challenges, particularly leading up to Christmas. While demand surged, the retailer struggled to balance inventory needs with slow customer payments, often finding themselves in a cash crunch. This left them unable to pay suppliers on time or invest in stock to meet growing demand.

The toy industry operates on thin margins, especially during peak periods. Stocking popular brands requires significant upfront investment. With much of their revenue tied up in pending orders, the retailer lacked the cash flow to cover these costs. They were stuck waiting for customer payments, limiting their ability to purchase new inventory and capture additional sales.

Further, the need to pay suppliers upfront to secure competitive pricing added more pressure. This made it difficult to maintain strong supplier relationships which could result in the retailer missing out on sales and failing to meet customer expectations. With the holiday season fast approaching, they needed more financial flexibility to navigate these challenges or risk losing out on the busiest time of the year.

Tailored Trade Finance helps manage cash flow

Recognising the urgent need for more working capital, the retailer reached out to Octet for a solution. Dan Verdon, Director of Working Capital Solutions – NSW, worked closely with them to understand their unique cash flow needs and challenges. After reviewing their business model, Octet proposed structuring a $2 million Trade Finance facility for their specific circumstances.

“Once we understood the business and their challenges, we knew they required a tailored solution that gave them the breathing room to meet customer demands without worrying about cash flow,” says Dan.

With Octet’s Trade Finance facility, the retailer gained quick access to funding, allowing them to purchase stock ahead of the holiday season, including high-demand items. The flexibility of the arrangement enabled the retailer to pay suppliers on time and unlock inventory without delay. They could now focus on meeting customer demand, rather than scrambling for funds or dealing with tight cash flow cycles.

A partner to support growth of the business

The benefits of working with Octet were immediately clear. Not only could the retailer fulfill orders on time and restock popular toys without delay, but they were now also positioned for long-term, sustainable growth.

“By utilising Trade Finance, the retailer gained better control over cash flow, providing the stability needed to scale operations without worrying about running out of cash,” explains Dan.

With Octet as a trusted financial partner, the retailer gained the confidence to expand their product range, explore additional sales channels and pursue larger growth opportunities.

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 retail, wholesale, and online sales. We work successfully with Australian businesses facing these same growth challenges every day, providing innovative Trade Finance and Debtor Finance working capital solutions, paired with market-leading 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.

How Octet’s collaboration with Corpay Cross-Border unlocked growth for a leading Australian importer

Posted on January 6, 2025January 22, 2025 by Russell Walsh

In the highly competitive Australian food and beverage distribution industry, businesses need to stay nimble, especially in a market where customer tastes and preferences constantly evolve. A Melbourne-based importer specialising in Asian cuisine, frozen goods, and alcoholic beverages, was on a mission to become Australia’s go-to supplier of Asian brands.

Established over 15 years ago, the business has grown steadily, earning a reputation for quality and reliability. However, to maintain its upward momentum, it needed financial flexibility to secure new products, meet rising demand, and attract international brands looking for distribution in Australia.

This is where working capital finance from Octet, introduced via our partnership with Corpay Cross-Border, was a game-changer, helping the company unlock growth potential in ways traditional financing couldn’t.

The challenge of scaling operations with a traditional finance facility

After a sustained period of steady 5% year-on-year growth, the business needed to scale up to meet increasing demand. Operating three distribution centres and managing a large fleet, it had established contracts with several Australian food retailers and exclusive distribution rights to numerous Asian brands. The goal was to continue to expand product lines and diversify offerings to become the preferred partner for new brands entering the Australian market.

Despite an impressive track record and commitment to excellence, cash flow management remained a challenge.

“The company had been working with a $400,000 trade finance facility from another financier,” explains Tony Ahdore, Octet’s Director Working Capital Solutions – VIC, TAS, SA. “While useful, this facility had limitations: it was expensive, offered a relatively low credit limit, and lacked integrated foreign exchange (FX) support.”

The business recognised that it needed a larger, more flexible finance solution to meet its growth targets.

How the Octet-Corpay partnership brought fresh perspectives

In April 2024, Octet and Corpay Cross-Border announced a collaboration focused on delivering innovative, tech-enabled financial solutions for businesses navigating the global trade landscape. Corpay, renowned for its expertise in cross-border payments and FX risk management solutions, identified that Octet’s working capital solutions could complement its services to Australian clients.

As part of the partnership, Corpay Cross-Border’s Head of APAC Enterprise Sales, Michelle Mak, introduced the importer to Octet Finance, believing that Octet’s tailored working capital finance could be the perfect solution to the company’s cash flow challenges. The introduction provided the business with access to Octet’s expertise in trade finance and a streamlined supply chain finance platform, while Corpay’s robust FX hedging tools were integrated into the solution to help the business manage currency risk with each international purchase.

Empowering growth with a flexible working capital facility

Octet provided a $1 million Trade Finance facility – a substantial increase over their previous financier’s line of credit.

“With this enhanced line of credit, the business could purchase a higher volume of finished goods from overseas suppliers, secure better pricing, and ultimately keep pace with customer demand,” Tony said.

The benefits of the Octet-Corpay solution went beyond increased funding. The Octet platform allowed the company to efficiently track transactions and control cash flow in real time, all through the intelligent supply chain platform. Combined with Corpay’s FX management tools, Octet’s facility gave the business a single, streamlined solution for handling both financing and FX exposure.

No longer needing to juggle separate systems or worry as much about fluctuating currency exchange rates, the business could focus on sourcing new products, expanding its offerings, and solidifying its position as a top importer in Australia’s food and beverage industry.

A catalyst for growth in a competitive market

For Australian businesses looking to scale internationally, this client success story illustrates how working capital finance can be a crucial driver of success. Octet and Corpay are supporting the company on its transformation from a steady performer to a growth-focused leader. The partnership enabled the business to leverage trade finance effectively, allowing it to navigate cash flow challenges, manage FX risks, and capitalise on expansion opportunities – all while mitigating many of the constraints of traditional financing.

Tony notes, “In an economic climate that often limits growth options for small-to-medium enterprises, working capital finance solutions like Octet’s can be a game-changer for companies with vision and ambition.”

As demand continues to grow for the business, Octet and Corpay are ready to adjust and increase the facility limit as needed. The importer’s leadership team is optimistic about the future, confident that with the right financing, their business will continue to flourish and set new standards in quality and service.

A partnership for sustainable growth

The collaboration between Octet and Corpay reinforces our commitment to supporting Australia’s innovative business community by providing the tools and expertise that can help companies unlock their potential and achieve sustainable growth.

If your business is facing cash flow challenges while striving to scale, similar to this Australian importer in the food and beverage industry, you may wish to consider a flexible working capital finance solution. By partnering with Octet and Corpay, you can unlock the growth potential of your business with enhanced financing, integrated foreign exchange tools, and a streamlined platform for managing both working capital and currency risk.

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.

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.

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.

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.

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