From administration to growth: Debtor finance restores cash flow for Australian freight business

After more than 30 years in the international freight industry, this Australian logistics provider had built a strong reputation across air freight, sea freight, customs clearance and complex cross-border shipments. But like many long-standing businesses, it faced a significant setback.

Following the appointment of administrators and the loss of a major $1m debtor, parts of the original business were sold, with the legacy entity moving into liquidation. A new business emerged in December, backed by experienced operators determined to rebuild.

Despite deep industry expertise and established client relationships, the new entity faced an immediate challenge: cash flow.

Working closely with the business to understand their new operating model post-adminstration, Tony structured a $750k OctetDebtor finance facility, designed specifically for this turnaround scenario.

Unlike traditional funding, debtor and invoice finance allowed the business to unlock cash directly from its outstanding invoices. This provided immediate working capital aligned to sales activity, rather than historical financial performance.

Given the circumstances, the facility was structured with a conservative advance rate — funding 70% of invoices rather than a typical 85% — reflecting the complexity of a turnaround deal. Importantly, the facility was disclosed debtor finance, providing transparency to customers and reinforcing credibility in the rebuilt business.

Octet worked closely with the client to:

• Leverage their 30+ year trading history as evidence of capability
• Validate strong debtor quality and reliable receivables
• Support restructuring debt and meeting ATO obligations
• Enable consistent supplier payments to rebuild trust
• Provide a pathway for future refinancing as the business stabilised

The result was a funding solution that didn’t just inject capital, but helped restore confidence across stakeholders.

With access to reliable working capital, the business was able to:

• Maintain steady operations across air, sea, and domestic freight services
• Support warehouse, road, and rail logistics without disruption
• Pay suppliers on time, gradually improving trading terms
• Demonstrate financial stability to customers and partners

Most importantly, the leadership team could focus on growth — rather than managing cash flow constraints.

Turnaround situations are rarely simple. But with the right funding structure, businesses can stabilise quickly and rebuild from a position of strength.

In this case, OctetDebtor finance provided more than just liquidity—it enabled a proven freight operator to reset, regain momentum, and move confidently into its next phase.

For Australian businesses navigating disruption, debtor and invoice finance remains one of the most effective tools to unlock cash flow, support restructuring, and create a clear path forward.

Partnering with traditional lenders and big banks usually entails onerous conditions and lengthy waiting periods. However, your business needs flexibility if it is to make timely decisions and act on emerging opportunities.

After speaking with Octet, you could be accessing innovative debtor and invoice finance facilities within a matter of weeks and seizing valuable opportunities for growth, too.

Discover how Octet can help your business grow.