How trade finance can increase purchasing power and drive growth
A fast-growing Australian solar equipment distributor had the customers, the relationships, and the market momentum — but supplier credit limits were capping their ability to buy enough stock to keep up. Working capital was tied up, growth was stalling, and traditional bank finance wasn't the answer. Partnering with Octet, they secured a $2 million trade finance facility that restored their purchasing power and put growth back on their terms.
$2m
Trade Finance
Australia's renewable energy sector is in the middle of a defining moment. Commercial and grid-scale solar projects are now economically viable in their own right, regardless of government incentives, and demand from this segment continues to climb. For a growing solar equipment distributor supplying panels, batteries, and inverters into this market, the opportunity was significant — but so was the obstacle standing in the way of capturing it.
The constraint wasn't demand. It wasn't product quality, relationships, or market positioning. It was something far more fundamental: purchasing power.
The challenge
Like many distributors in the solar industry, this business operated under supplier and insurance-imposed credit limits that capped how much stock it could order at any one time. As demand grew, those limits didn't move with it. The business found itself in a frustrating position — orders were there, customers were ready, but the ability to buy enough product to fulfil growing demand was fixed.
This is a familiar story across the distribution side of the renewable energy supply chain. Many solar equipment importers and distributors in Australia rely on a parent entity or related party overseas for funding support, giving them comfortable access to capital and favourable terms. But for businesses without that backing, cash flow becomes a local problem — largely centred on funding receivables while suppliers expect payment well before customers settle their invoices.
“The result is a structural bottleneck with capital tied up in stock and debtors. And there’s no easy way to unlock it without putting personal assets on the line or accepting financing that doesn't reflect how the business actually operates.”
Brett DivallDirector Working Capital Solutions Vic, SA, Tas - Octet
There's added complexity in timing. Shifting STC and rebate settings continue to create variability in residential demand, while commercial and grid-scale projects move on their own momentum. For distributors trying to plan stock and cash flow around these dynamics, the margin for error is thin — and a constrained credit line only narrows it further.
Given these timing gaps, the business quickly realised that their existing finance arrangements would not meet their requirements.
The solution
Recognising that traditional finance options wouldn't solve a problem rooted in transaction timing, the business sought out a working capital partner with genuine knowledge of the renewable energy space. The introduction came through a venture fund specialising in early-stage climate technology investment — a referral that pointed the business toward Octet's trade finance solutions.
Octet structured a $2 million OctetTrade finance facility designed specifically to expand the distributor's purchasing power beyond what its existing supplier credit lines allowed. Rather than being limited to a fixed credit ceiling, the business could now draw funding to purchase additional stock — panels, batteries, and inverters — without disruption to its supply chain.
Crucially, the facility was structured to align with how the business actually earns revenue. Funds are drawn against confirmed purchase orders and repaid as customer invoices are settled, rather than following a rigid fixed-repayment schedule unrelated to the sales cycle. This meant the business wasn't carrying the same risk profile as a traditional bank loan — repayments moved in step with cash flow, not against it.
“The facility also meant the business retained its existing supplier relationships and credit terms”, says Brett. “The trade finance worked alongside, not instead of, those arrangements, simply removing the cap that had been holding growth back.”
The result
With the new facility in place, the distributor could finally purchase stock in line with actual market demand, rather than the limits imposed by suppliers or insurers. This freed up working capital that had previously been tied up funding debtors, giving the business room to reinvest in growth.
The facility is structured to scale alongside the business, meaning as demand grows — particularly in the commercial and grid-scale segments less exposed to rebate volatility — funding capacity can grow with it.
“This positions the distributor to take on opportunities that were previously out of reach, competing more confidently for larger commercial contracts that require certainty of supply”, said Brett.
By solving the purchasing power constraint at its root, the business moved from a defensive, credit-limited position to one of confidence — better placed to support Australia's renewable energy transition while building a more resilient, scalable operation for the years ahead.
For renewable energy companies, trade finance can unlock growth constraints, and be tailored to address the unique working capital challenges of innovative businesses.
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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.
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