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Octet Onboard: VIC Distribution Company – delivering a great result

Client stories By Duncan Khoury – 14 March 2019

The Scenario

This high performance national distribution company is one of Octet’s earliest debtor finance clients. Unlike traditional distribution models, the company doesn’t double or triple handle, avoiding the need to stack, unstack and restack pallets. Instead, they pick up in bulk and distribute goods to their state-based experts for final delivery. This network utilises the best service providers in each state, using their coverage and local knowledge whilst the company oversee the entire distribution process to ensure a seamless delivery from end to end. Their process allows them to reduce costs, handling, risk of error and damage.

The business sought increased working capital in their business that would not only assist in funding expansion opportunities but also provide leverage in negotiating with both customers and suppliers.

The Solution

Octet, implemented a $3m debtor finance facility that provides the business with a sound cash working capital base that the business could draw as a line of credit facility. In addition, Octet added a $700k Trade Finance facility that the business could use to pay suppliers including service based supply and subcontractors with repayment terms to Octet of up to 120 Days.

The new facility gives the directors the flexibility to push for better deals and terms from their key suppliers, allowing them to build upon their already solid business.