The Scenario
This unique company sources specific store fittings from overseas for a major supermarket chain in Australia. They provide items like trolleys, baskets, shelving, wall panelling and ceiling tiles for both new builds and refurbishments across the country.
The business was well positioned to expand their offering to offshore markets, but needed external funding to help them take advantage of the opportunity.
The Solution
The company’s accountant approached Octet looking for a business finance solution to suit their unique needs. Octet worked closely with the client to understand their underlying business drivers, their working capital cycle and cash flow forecasting to assess the most appropriate funding model for their business.
Octet provided a $2.5 million Trade Finance solution, based on the business’s current strong financials and continued viable growth forecasts. Another major factor was the client’s solid relationship with a well-established, global supermarket, and their plans for international expansion.
Octet’s working capital solution allows the company to fund their new international contract. The business intends to expand in a series of stages, using Octet’s Trade Finance to fund part of each stage, while self-funding the balance. The extra funding will cover the company’s need for higher working capital, while also providing greater security as more debtors come onboard. The client’s facility limit will likely increase with continued growth, providing them with the flexibility to power their business into the future.
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