How a Queensland mining company secured $7M+ in combined facilities to fuel quarry expansion

This family-owned Queensland business had built a solid foundation since 2007, establishing themselves as a reliable supplier of raw materials to the mining and construction sectors. Their diversified operations—providing graded aggregates and gravels to mines and councils, sand mining rights, and a concrete batch plant—created multiple revenue streams and stable demand.

The business had demonstrated impressive performance, enjoying significant, stable growth over the past three years and building a reasonably strong net worth. However, they had identified a significant opportunity: the acquisition of an additional quarry that would expand their production capacity and drive substantial growth over the coming 12 months.

Their existing finance facility presented two problems. First, their current financier couldn't provide the increased working capital funding needed for the acquisition and anticipated growth. Second, the terms weren't as competitive as they could be. Despite their strong track record and financial position, their existing arrangement couldn't support their expansion ambitions.

The company's financial broker approached Octet to find a solution that would meet their needs—both in terms of funding quantum and competitive rates.

Octet assessed the business and recognised the strength of their position. The company was well-established with nearly 15 years of trading history, a reasonably strong net worth, and significant, stable growth over the past three years. Their diversified operations across aggregates, sand mining, and concrete production provided balanced revenue streams.

Based on this assessment, Octet approved a comprehensive funding package:

• $7 million Debtor Finance facility: This substantial facility provided immediate access to working capital by converting up to 85% of accounts receivable into cash flow. Rather than waiting 30-90 days for mines, councils, and concrete clients to pay invoices, the business could access funds immediately. The revolving facility would scale naturally with their expanding operations following the quarry acquisition.
• $75,000 Trade Finance facility: This complemented the primary facility with procurement support, offering up to 60 days interest-free and 120-day repayment terms. For a raw materials business managing extraction equipment, maintenance, and operational supplies, this provided valuable flexibility.

Crucially, Octet provided these facilities at better terms than their existing financier—meaning the business accessed substantially more capital whilst also improving their funding costs.

With over $7 million in combined facilities approved, the Queensland raw materials business achieved what they needed to execute their growth strategy.

The outcomes included:

• Substantially increased working capital compared to their previous facility
• Better terms improving funding costs and profitability as they grew
• Capital to support quarry acquisition and the operational expansion that would follow
• Facilities that scale with growth through revolving structures
• Confidence to pursue 12-month growth plans backed by adequate funding

The quarry acquisition could now proceed with confidence. The business had working capital in place to support not just the acquisition itself but also the increased operational demands—more production, more invoicing, and more clients. The revolving nature of the Debtor Finance facility meant it would scale naturally with these increased operations.

The client expected strong growth over the coming 12 months as the additional quarry came online. With Octet's combination of supply chain funding lines in place, they had the working capital needed to power their growing business across aggregates, sand mining, and concrete production.

For businesses in the mining supply chain and raw materials sector, managing substantial working capital requirements whilst pursuing growth opportunities requires the right funding partner. Octet specialises in funding solutions for the resources and construction supply sectors, with the ability to structure substantial facilities for established businesses with strong fundamentals.

Talk to our team today to discuss how Octet's combined finance solutions can support your raw materials or mining supply business. We'll assess your operations and growth plans to structure facilities that provide the working capital and terms you need.