Verus Global is an award-winning freight forwarding company that’s on a mission to bridge the gap between global giants and smaller local enterprises. The business is disrupting the freight forwarding industry using cutting-edge shipping systems and processes outside industry norms.
Customers get a real-time view of their shipping journey with complete visibility on all freighting consignments at every stage of the process.
With a commitment to transparency, streamlined shipping and minimal touchpoints, Verus Global boasts a stress-free and high quality standard of service.
The business grew fast after securing major customers in both Australia and the UK within its first year. This was four times faster than their projections, which meant they had to find additional finance quickly.
After securing funding for business growth, Verus Global has since more than tripled their sales. Now expanding their operations to new countries, they are an example of how to successfully execute a growth-led business strategy.
A fresh start with new challenges
Verus Global has already faced significant challenges since its establishment in January 2019. Operating across Australia, Hong Kong, China, and the UK, the business has dealt with major Hong Kong protests, Chinese New Year and of course, the global pandemic.
The varying impacts from different countries at different times had a major effect on cash flow and made finding the right working capital solution critical.
“We had a bit of a rough start with protests, Chinese New Year and especially the pandemic. We had China closed for an eight-week period and we still had to pay everyone’s wages – and that was just one example. It was certainly a challenging time.”
Jackson Meyer, Group CEO, Verus Global
Adding to these challenges was the impact of the Verus Global business model on cash flow. Unlike competitors in their industry, Verus Global covers all costs throughout the freight process and only invoices customers at completion of delivery.
While this approach certainly propelled their business growth, it also meant they had a longer cash flow cycle and greater working capital requirements. As a result, Verus Global began their search for innovative cash flow solutions to help work through these challenges and build on their business growth trajectory.
High growth, short trading history = limited cash flow funding options
While they were growing fast, Verus Global didn’t have the established trading history that many traditional financiers require. This was one of the major challenges in securing funding for their business growth.
“We were fresh on the scene and didn’t have that history behind us. Also, I was only 23 at the time, which did add to our risk profile,” said Jackson. “But we were growing so quickly and needed a decent amount of finance to capitalise on those opportunities”.
The company approached several different providers in their search for the right funding solution and found their experience with Octet stood out.
“Our account manager was very responsive. He took the time to build a relationship and understand our business. It didn’t just stop at us as their client – they got to know our clients and how they work with us too. So the Octet team was supportive of our peak seasons, when we needed extra funding, etc. There was a very positive energy from the beginning and it’s a big reason why we ended up partnering with them.”
Jackson Meyer, Group CEO, Verus Global
After deciding to partner with Octet, the Verus Global team went through a controlled and thorough onboarding process.
“Everything was checked from a compliance point of view,” said Jackson. “It ensured we were doing the right thing, while also being easy on our end”. He also reported that staff found the process of using the Octet Platform, uploading documents, and drawing down funds easy.
“Our partnership is an ongoing commitment, so we need to constantly be on top of our clients’ needs. There are times where we need to make some changes, so we’re continually working together to re-evaluate and adjust.”
Sam Ralton, Director Working Capital Solutions VIC, Octet
More than five times growth forecasted
Octet’s transport financing solution helped Verus Global shorten their cash flow cycle, build a stronger balance sheet, and increase their working capital. It also provided a valuable cash flow boost that helped them capture new opportunities.
Jackson sees Octet as a key partner in their future business growth, thanks to the flexibility and ease of their funding facility.
“We’ve recently expanded into the Netherlands, stabilised our key customers, and grown our business. After starting with $24 million turnover in our first year, we are now on track to do around $140 million this year. We absolutely see Octet as a long-standing partner to help make that happen.”
Jackson Meyer, Group CEO, Verus Global
Dynamic funding for optimal business growth
For businesses looking to expand their cash flow options to help manage business growth, having a flexible finance solution in place can help. Once the onboarding process is complete, you’ll have access to funds as and when you need them, with the flexibility to adjust as your business changes.
“Flexibility on both sides is the key. If you need something non-traditional, a partner like Octet can help in finding a solution that works for both your business and theirs.”
Jackson Meyer, Group CEO, Verus Global
“Putting in place a facility one day and not changing it again simply doesn’t work. When your business is growing and evolving, having a flexible finance solution that changes with it is crucial. You need to constantly re-evaluate limits, timing, payments – the whole lot – and work together with your finance provider to optimise the process.”
Sam Ralton, Director Working Capital Solutions VIC, Octet
Octet has the ongoing commitment and experience to work with your business to leverage your strategic business growth plan.
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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.
