How a Victorian trade signage company secured $2.1M in combined facilities during rapid expansion

This Victoria-based trade signage group had established itself as a leading distributor of high-quality signage, printers and printing products across Australia and New Zealand. Their energetic team and strong market position had driven impressive growth. However, the business found itself at a critical juncture, managing two simultaneous priorities that created complex working capital challenges: The business was experiencing significant growth, with forecasted annual turnover reaching $12.5M.

This expansion created:

• Increased inventory requirements for printing supplies and equipment
• Growing accounts receivable as customer base expanded
• Need for working capital to support larger order volumes
• Pressure to maintain service levels whilst scaling operations

Simultaneously, the business was implementing extensive cost-cutting measures:

• Reducing outgoings across the operation
• Streamlining staffing structures
• Optimising procurement processes
• Improving operational efficiency

Growth requires investment and working capital, whilst cost-cutting aims to reduce expenditure and improve margins. Managing cash flow during this transition period was critical.

The business needed:

• Access to funds tied up in accounts receivable to support growth
• Flexible procurement financing as they streamlined supplier relationships
• Capital to bridge the gap between expansion costs and cost-cutting benefits
• Funding that wouldn't constrain their operational transformation

The company originally approached Octet for a Debtor Finance facility, recognising that unlocking cash tied up in invoices would help manage their growth and transformation simultaneously.

Octet conducted a thorough assessment of the business, going beyond the initial Debtor Finance request to understand their full working capital needs. As part of this assessment, Octet reviewed the creditors and debtors ledgers and found that both were well spread—indicating healthy customer and supplier diversity that reduced concentration risk.

This comprehensive view allowed Octet to structure a solution that addressed multiple working capital needs:

Spread across the group to fund both existing and new invoices.

The Octet Debtor Finance facility:

• Provided immediate access to up to 85% of invoice values
• Covered the existing debtors ledger, unlocking cash tied up in outstanding invoices
• Funded new invoices going forward as the business continued to grow
• Operated across the group structure, providing flexibility for multiple entities
• Created a revolving facility that reset as customers paid, providing ongoing working capital

A robust facility supporting procurement and supplier payments.

The Octet Trade Finance facility:

• Provided up to 60 days interest-free and 120-day repayment terms
• Supported the streamlined procurement processes being implemented
• Enabled better supplier relationship management during operational changes
• Created flexibility to manage inventory requirements for printing supplies and equipment
• Complemented the Debtor Finance facility by covering the procurement side of the business cycle

The combined $2.1M solution meant:

• Both sides of the cash flow cycle were covered through complementary facilities
• Existing invoices were converted to cash whilst new invoices continued to be funded
• Procurement flexibility supported operational streamlining
• Working capital was freed up to support growth initiatives
• Well-spread debtors and creditors reduced risk and supported facility approval

The combined facilities delivered exactly what the business needed during their critical growth and transformation phase.

Immediate impact:

• $2.1M in working capital facilities ($1.75M Debtor Finance + $350K Trade Finance) providing comprehensive support
• Freed up working capital previously tied up in accounts receivable
• Flexible credit lines established across both receivables and procurement
• New access to invoiced funds supporting cash flow during operational changes

Ongoing benefits:

• More cash flow through the business as invoices were converted to immediate working capital
• Support for rapid expansion with forecasted $12.5M turnover backed by adequate funding
• Facilitated cost-cutting measures by providing working capital flexibility during transition
• Enabled streamlined procurement through robust Trade Finance facility
• Positioned to well exceed forecasted profit over the next financial year

The combination of facilities worked together to support the business's dual objectives:

• The Debtor Finance facility unlocked cash flow to support growth and provided immediate working capital during the cost-cutting transition
• The Trade Finance facility supported their streamlined procurement processes and improved supplier management

With overheads reduced through their cost-cutting initiatives, flexible lines of credit established through Octet, and new access to invoiced funds, the company was set to well exceed their forecasted profit over the next financial year.

The business could now focus on:

• Executing their rapid expansion across Australia and New Zealand
• Completing their operational streamlining and cost-cutting initiatives
• Strengthening their position as a leading distributor of high-quality signage and printing products
• Building on their energetic team's momentum

All of this was supported by working capital facilities that provided flexibility across both sides of their business cycle—from procurement through to invoice collection.

For businesses in distribution and printing sectors managing rapid growth whilst optimising operations, having the right combination of working capital facilities can be transformative. The ability to unlock cash from receivables whilst maintaining flexible procurement funding creates the financial flexibility needed during periods of change and expansion.

Octet specialises in tailored funding combinations for distributors and manufacturers, with the ability to structure Debtor Finance and Trade Finance facilities that work together to support your full business cycle. We conduct thorough assessments to understand your creditors and debtors ledgers, ensuring facilities are structured to match your specific circumstances.

Talk to our team today to discuss how Octet's combined finance solutions can support your business during growth and transformation. We'll assess your debtors and creditors ledgers and structure facilities that provide comprehensive working capital support.