Recipe for growth: How Tailored Working Capital Fuelled a Heritage Smallgoods Manufacturer's Next Chapter
In the world of Australian food manufacturing, few categories carry as much heritage as smallgoods. Recipes passed down through generations, traditional European smoking techniques, and a deep respect for quality ingredients are what set the country's best producers apart. But behind the scenes is a less romantic reality: the relentless cash flow pressure of running a manufacturing business in 2026.
$1,400,000
Debtor & Invoice Finance
$90,000
Trade Finance
The challenge
Founded over half a century ago by European immigrants who brought traditional smoking techniques to Melbourne, this family-built smallgoods producer has spent decades perfecting its craft. Today, its products are stocked in delicatessens, independent grocers and selected major supermarket chains across Australia.
Like many established food manufacturers, the business found itself in a familiar bind.
Growth was strong, demand was rising, and major retailers were increasingly interested in expanded ranging. But success came with a catch: the working capital gap
"It's a pattern we see again and again with manufacturers in the food sector. They're paying suppliers upfront for raw materials, energy and packaging, but waiting 60 to 90 days to get paid by the major retailers. The bigger they grow, the wider that gap becomes."
Dan VerdonOctet Director Working Capital Solutions - NSW
For a smallgoods producer, those upfront costs are substantial. Australian pork, imported casings, specialty woods for smoking, and energy-intensive curing and refrigeration all need to be funded long before a single dollar of revenue lands in the bank. Add in the seasonal pressure of building inventory ahead of Christmas — when ham sales peak — and the cash flow squeeze becomes acute.
The business had ambitions to invest in production capacity, expand into new retail channels, and capitalise on the growing consumer appetite for premium, artisanal smallgoods.
But to do so, it needed a working capital partner who understood the rhythm of food manufacturing.
The solution
The business had already secured formal approval from another non-bank lender. On paper, the funding was there. In practice, however, the experience had fallen short.
Service levels were not as they expected, communication was slow, and the commercial finance broker representing the client was looking for a partner who could actually deliver.
That's when Octet was given the opportunity — with one significant condition. The business was working to a specific deadline, and settlement had to happen before then. The window was narrow, and the timing was non-negotiable.
"Approval wasn't the issue for this client. They had that already," Dan says. "What they didn't have was certainty. They needed to know the deal would actually settle on time, structured the right way, with a partner who would treat the deadline as seriously as they did."
Octet's team got to work immediately. After understanding how the business actually operated — the supplier relationships, the receivables cycle, the seasonal patterns — Octet structured a combined facility designed to address both sides of the cash flow gap:
- A $1.4 million OctetDebtor invoice finance facility to unlock cash tied up in outstanding receivables from major retail customers, smoothing the 60-to-90-day payment cycle.
- A complementary $90,000 OctetTrade finance facility to fund upfront supplier payments for raw materials and packaging, easing the pressure of input costs and FX exposure on imported ingredients.
Together, the two facilities created a complete working capital solution rather than a single-product fix.
"Our ability to move quickly, apply pragmatic credit assessment, and structure facilities flexibly meant we could meet the deadline and get the deal settled on time," Dan explains.
The facility settled on the agreed date — meeting the business’s requirement.
The result
For the business, the impact was immediate.
Cash previously locked up in unpaid invoices became available to fund operations. Supplier payments could be made promptly, opening the door to early-payment discounts and stronger relationships with key raw material providers.
More importantly, the business gained the confidence to plan for growth — building Christmas inventory without strain, exploring expanded ranging conversations with major retailers, and reinvesting in the premium product lines driving margin growth across the category.
"This is exactly where we see the market shifting," Dan says. "Businesses don't just need funding — they need responsive, tailored solutions that keep up with the pace of their operations. When a CFO is going on leave and a deal needs to settle, you don't have time for a lender that moves at its own pace."
The transaction also marked the beginning of a new broker relationship — the first deal this broker had referred to Octet. The collaboration, the speed of execution, and the outcome for the end client created a strong foundation for future referrals.
For Australian SME owners and financial decision-makers navigating cash flow pressure, the lesson is clear: the right working capital partner does more than approve a facility. They structure it around how your business actually works — and they deliver when it matters most.
For food and beverage producers with concentrated debtor bases, traditional finance facilities with strict concentration limits can become unavailable even when those major customers represent quality, reliable relationships. You need a finance partner who assesses the quality of your debtors, not just their concentration.
Octet specialises in working capital solutions for the food and beverage sector, with the flexibility to accommodate concentrated debtor bases when those relationships are strong and reliable.
Talk to us today and we’ll help you find the best options to manage cash flow and accelerate your business growth.
Built for every kind of business.
Disclaimer: The above article content and comments are our views and should not be construed as advice. You should act using your own information and judgment. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgment as at the date of publication and are subject to change without notice.
For businesses navigating global trade and supply chains, the partnership between Octet and Corpay delivers a seamless, tech-enabled financial solution that helps unlock working capital while managing currency risk.
For this hospitality and party supplies business, the collaboration offered: