Disrupting an industry: funding strategy helps boost business growth

Verus Global faced a unique set of challenges from the moment they launched. Operating across multiple countries, the business dealt with major Hong Kong protests, Chinese New Year closures, and the global pandemic—all within their first 18 months of operation.

"We had a bit of a rough start with protests, Chinese New Year and especially the pandemic. We had China closed for an eight-week period and we still had to pay everyone's wages—and that was just one example. It was certainly a challenging time," said Jackson Meyer, Group CEO.

Adding to these challenges was the impact of their business model on cash flow. Unlike competitors, Verus Global covered all costs throughout the freight process and only invoiced customers at completion of delivery. While this approach propelled their business growth, it also meant longer cash flow cycles and greater working capital requirements.

Despite growing rapidly, Verus Global didn't have the established trading history that many traditional financiers required. "We were fresh on the scene and didn't have that history behind us. Also, I was only 23 at the time, which did add to our risk profile," said Jackson. "But we were growing so quickly and needed a decent amount of finance to capitalise on those opportunities."

The company approached several different providers in their search for the right funding solution, but found their experience with Octet stood out.

"Our account manager was very responsive. He took the time to build a relationship and understand our business. It didn't just stop at us as their client—they got to know our clients and how they work with us too. So the Octet team was supportive of our peak seasons, when we needed extra funding, etc. There was a very positive energy from the beginning and it's a big reason why we ended up partnering with them," said Jackson.

After deciding to partner with Octet, the Verus Global team went through a controlled and thorough onboarding process. "Everything was checked from a compliance point of view," said Jackson. "It ensured we were doing the right thing, while also being easy on our end." The team found the process of using the Octet Platform, uploading documents, and drawing down funds straightforward.

"Our partnership is an ongoing commitment, so we need to constantly be on top of our clients' needs. There are times where we need to make some changes, so we're continually working together to re-evaluate and adjust," said Sam Ralton, Director Working Capital Solutions VIC, Octet.

Octet's transport financing solution helped Verus Global shorten their cash flow cycle, build a stronger balance sheet, and increase their working capital. It also provided a valuable cash flow boost that helped them capture new opportunities as they arose.

The company achieved remarkable growth:

• Expanded into new markets, including the Netherlands
• Stabilised major customer relationships across multiple countries
• Scaled turnover from $24 million in year one to $140 million in year three
• Maintained flexibility to adapt funding as their business evolved

"We've recently expanded into the Netherlands, stabilised our key customers, and grown our business. After starting with $24 million turnover in our first year, we are now on track to do around $140 million this year. We absolutely see Octet as a long-standing partner to help make that happen," said Jackson.

Jackson attributes much of their success to the flexible nature of their partnership with Octet. "Flexibility on both sides is the key. If you need something non-traditional, a partner like Octet can help in finding a solution that works for both your business and theirs."

Sam Ralton echoed this sentiment: "Putting in place a facility one day and not changing it again simply doesn't work. When your business is growing and evolving, having a flexible finance solution that changes with it is crucial. You need to constantly re-evaluate limits, timing, payments—the whole lot—and work together with your finance provider to optimise the process."

For businesses in transport and logistics looking to manage rapid growth, having a flexible finance solution in place can make all the difference. Once the onboarding process is complete, you'll have access to funds as and when you need them, with the flexibility to adjust as your business changes.

Octet specialises in working capital solutions for the transport and logistics sector, including Debtor Finance (also known as invoice finance), and Trade Finance. We have the ongoing commitment and experience to work with your business to leverage your strategic growth plan.

Talk to our team today to discuss how Octet's flexible funding solutions can support your growth trajectory. We'll take the time to understand your business model, cash flow cycles, and growth objectives to design a facility that works for you.