How a Tasmanian pet supplier scaled from $1.6M to $3M in trade finance to ride the industry boom

March 2020 saw the business achieve its biggest turnover on record. The pet products category was exploding in growth, driven by changing consumer behaviour and increased pet ownership. Sales were flourishing, and financial forecasts indicated this growth trajectory would continue.

For this vertically integrated business (managing manufacturing, retail, and logistics operations) the challenge was clear: how to capitalise on exceptional market conditions whilst managing the working capital requirements of rapid expansion.

The company identified a strategic opportunity:

• Secure attractive supplier terms that would improve margins and strengthen relationships with key partners
• Expand physical capacity by building more space in their premises to accommodate increased stock levels
• Position for continued growth with new distribution points set to open around Australia

However, executing this strategy required significant additional working capital. With the category booming and competitors also seeking to expand, the window of opportunity was time-sensitive. The business needed a finance partner who understood their industry, could move quickly, and would scale funding as their growth continued.

The company turned to Octet for financing to help support this increase.

Octet assessed the company's position and discovered they were perfectly positioned for growth. The business was profitable, well-capitalised, and operating in a booming industry. With new distribution points set to open around Australia, improving working relationships with key suppliers and taking advantage of favourable supplier terms would position the business well to achieve its targets.

Octet initially approved a $1.6 million Trade Finance facility to support the company's immediate needs. This facility enabled the business to:

• Secure preferential supplier terms through guaranteed, timely payments
• Fund the expansion of their premises to accommodate increased stock levels
• Maintain cash flow flexibility across their manufacturing, retail, and logistics operations

The Trade Finance facility provided:

• Up to 60 days interest-free terms
• Up to 120 days total repayment terms
• Revolving credit line that reset as payments were made
• Integration with their supply chain to streamline procurement processes

Based on the business's strong performance, Octet increased the facility to $2 million—providing additional capacity to meet growing demand and secure even more favourable supplier arrangements.

Just six months later, continued strong performance led to another increase, this time to $3 million. The facility had nearly doubled in less than a year, demonstrating both the business's exceptional growth and Octet's commitment to scaling support as client needs evolved.

The outcomes included:

• Secured attractive supplier terms that improved margins and strengthened key partnerships
• Expanded physical capacity to accommodate increased stock levels
• Maintained strong cash flow across manufacturing, retail, and logistics operations
• Positioned for continued growth with new distribution points opening around Australia
• Facility scaled rapidly from $1.6M to $3M within six months to match performance

With access to this flexible finance from Octet, the company now had the power to scale and take advantage of growth opportunities in its fast-growing sector. The revolving nature of the facility meant they could continue to draw down funds as needed, supporting ongoing expansion without the constraints of traditional fixed-term lending.

The business could now focus on executing their growth strategy—securing premium local ingredients, expanding manufacturing capacity, opening new distribution points, and capitalising on the booming pet products market—confident that their working capital facility would grow with them.

For businesses operating in high-growth sectors, having the right working capital solution can mean the difference between capitalising on opportunities and watching them pass by. Octet's Trade Finance facilities are designed to scale with your business, providing flexible funding that grows as your performance strengthens. Whether you're securing supplier terms, expanding capacity, or opening new distribution channels, we can structure a solution that supports your growth trajectory.

Our facilities are particularly well-suited to vertically integrated businesses managing complex supply chains across manufacturing, retail, and logistics operations.

Talk to our team today to discuss how Octet's Trade Finance solutions can support your expansion plans. We'll assess your situation and can scale your facility as your business performance grows.