Family owned and operated, this furniture transport business was established in 1992. These specialists service a long-established network of various retailers with the transportation, distribution and temporary warehousing of furniture. After experiencing trading difficulties 4-5 years ago, the business has traded successfully through a Deed of Company Arrangement (DOCA) since 2015.
The business was requiring a larger working capital facility to enable the final payment to creditors under the DOCA, allowing the arrangement to be finalised.
The company’s external accountant, a long standing advocate of debtor finance, approached Octet about a facility that would provide the additional working capital required to successfully complete the DOCA. The business required a larger working capital facility than their current bank overdraft secured by the director’s residential property. This would stabilise the business and enable sustained growth in the medium term.
Octet was able to approve a competitively priced $800K debtor finance facility, with a 85% advance rate to meet the business’ growth needs. More importantly, the business was provided with additional cash tied up in the current debtors to payout all outstanding creditors, required for the DOCA to be finalised. Octet had a surplus of funds available for the business, which immediately placed them in a stronger cash position. The business is now in a prime position to fund existing and future growth opportunities, while reducing their financial risk by keeping the personal property portfolio separate from the business funding.