How a Victorian freight forwarder unlocked $2.5M to fund 4x faster-than-projected growth

This innovative freight forwarding company launched in January 2019 with a clear vision: use cutting-edge shipping systems to enhance freight movement and improve productivity in ways that set them apart from traditional competitors.

Their point of difference was significant. Going against industry standard, the company chose to cover all costs throughout the freight process and only invoice customers at completion of delivery. This approach provided customers with certainty, reduced their cash flow pressures, and created a competitive advantage that helped the business secure major customers quickly.

The strategy worked remarkably well. In its first year, the company secured major customers in Australia and the UK across construction, stationery, healthcare and other industries. Growth exceeded projections by a factor of four—an exceptional result for a business less than two years old.

However, this success created a critical challenge:

• Extended cash flow cycle from covering all costs upfront and invoicing only at delivery completion
• Greater working capital requirements than traditional freight forwarding models
• Growth four times faster than projected stretching existing capital resources
• Major customer relationships requiring continued investment and service delivery
• New opportunities that couldn't be pursued without additional working capital

Despite their award-winning service, cutting-edge systems, and impressive customer roster, the business model's cash flow implications meant they needed external funding to bridge the gap between operational costs and customer payments. Without it, their rapid growth trajectory would stall—or worse, they might need to abandon the innovative approach that had driven their success.

The company heard about Octet on the radio and visited the website to see how Octet could help improve their working capital position.

Octet worked closely with the company to understand their business, invoicing process, obligations and growth potential before suggesting a solution. This detailed assessment was crucial—the company's non-traditional approach required a finance partner who could look beyond standard industry models to recognise the underlying business strength.

Octet's assessment focused on:

• The profitability of the business despite the extended cash flow cycle
• The quality of the debtors including major customers across multiple industries and countries
• The quality of their paper trails and operational systems
• The strength of customer relationships and competitive positioning
• Growth potential supported by their unique service offering

Based on this assessment, Octet provided a flexible $2.5 million Debtor Finance facility tailored to the company's transport financing needs.

The facility enabled the business to:

• Access up to 85% of invoice value immediately upon invoicing, rather than waiting for customer payments
• Shorten the cash flow cycle by converting receivables into working capital
• Increase working capital to support continued growth
• Cover upfront operational costs whilst maintaining their innovative business model
• Capture new opportunities without cash flow constraints

Critically, the facility was structured to work with their unique invoicing process—recognising that whilst they only invoiced at delivery completion, the quality of their customers and processes meant those invoices represented reliable, high-quality receivables.

With the $2.5 million Debtor Finance facility approved, the business achieved multiple objectives that positioned them for continued success.

The outcomes included:

• Shortened cash flow cycle through immediate access to invoice funds
• Increased working capital supporting 4x faster-than-projected growth
• Met statutory obligations comfortably whilst funding expansion
• Maintained innovative business model that drove competitive advantage
• Positioned to capture new opportunities across Australia and UK markets
• Continued servicing major customers across construction, stationery, healthcare and other sectors

The business could now continue their disruptive approach (covering all costs and invoicing at delivery completion) without the cash flow constraints that would typically limit such a model. This meant they could maintain the competitive advantage that had driven their exceptional first-year growth whilst building the working capital needed to scale further.

The revolving nature of the Debtor Finance facility meant that as customers paid their invoices, the facility reset—providing ongoing access to working capital as the business continued to grow and take on new customers across multiple industries and countries.

By partnering with a financier who took the time to understand their unique business model rather than applying standard industry templates, the company secured funding that worked with their innovation rather than against it—enabling them to power their growth whilst maintaining the service approach that set them apart in the market.

For freight forwarding and logistics businesses with innovative business models or non-traditional cash flow cycles, finding the right finance partner is critical. Standard facilities may not accommodate approaches that differentiate you in the market.

Octet specialises in tailored Debtor Finance solutions for the transport and logistics sector, with the flexibility to support diverse business models—from traditional operations to disruptive approaches that challenge industry norms. We assess businesses based on profitability, debtor quality, and growth potential, not just conformity to standard industry patterns.

Talk to our team today to discuss how Octet's Debtor Finance solutions can support your freight forwarding business. We'll take the time to understand your unique business model and structure a facility that works with your approach, not against it.