trade finance Archives

ATO tax crackdown on small business: Are you ready for stricter compliance?

Posted on June 7, 2025June 15, 2025 by Russell Walsh

From 1 July 2025, Australian small and medium-sized businesses will face intensified scrutiny under the Australian Taxation Office’s (ATO) $1 billion compliance crackdown. While the initiative is designed to target tax evasion and level the playing field, even honest SMEs will come under the microscope.

ATO Deputy Commissioner Will Day says only a small portion – around 5% – of small businesses are deliberately avoiding tax. But that still leaves a significant $17.7 billion tax gap, largely driven by mistakes, opportunistic behaviour, and poor record-keeping.

With audits set to increase and data-matching tools becoming more advanced, even businesses doing the right thing may find themselves subject to greater scrutiny. That’s why now is the time to double-check your records, revisit your tax strategy, and act early if support is needed.

The majority of SMEs are already doing the right thing. Staying proactive will ensure they’re not caught off guard as the ATO’s new measures take effect.

Carrying ATO tax debt is getting more expensive

From 1 July, managing tax debt will become more costly for SMEs. “Small businesses’ tax debts continue to be too high,” said Day. The ATO reported $53 billion in collectable debt at the end of FY24 – $35.6 billion owed by small businesses.

New legislation removes tax deductions for ATO interest charges, including the General Interest Charge (GIC) and Shortfall Interest Charge (SIC). With GIC already exceeding 11% and compounding daily, the cost of carrying tax debt is rising sharply.

“Many businesses underestimate their tax liabilities, leading to significant debt,” says Olga Koskie, Principal at Tax Assure. She notes it’s crucial for business owners to take a proactive approach to managing their tax debts.

The ATO also wants to shed its image as a lender of last resort, which means SMEs relying on ATO payment plans should reassess their strategies, with tighter repayment terms coming into force from 1 July.

Alternative finance options may offer relief. “Working capital finance can help businesses repay debt and meet ongoing obligations – especially when revenue is lumpy,” says Campbell McCallum, Octet’s CFO. “Supplementary Trade Finance, for example, offers a revolving line of credit to pay suppliers, freeing up funds for tax.”

Tax minimisation schemes under the microscope

Many SMEs use legitimate tax strategies to manage cash flow – but under the ATO’s new compliance push, some of these approaches will face closer examination.

The ATO has flagged that strategies involving income diversion for personal use, inflated deductions, or artificial losses could fall into risky territory if not properly substantiated. “If you look at both the tax gap and the debt book, they are symptoms of a system operating less than optimally,” said the Deputy Commissioner.

Tax practitioners are also on the radar. The Tax Practitioners Board has received an additional $27.3 million in funding to investigate high-risk advisors who may be promoting overly aggressive schemes.

The ATO is clear that most businesses are doing their best to comply. But with greater scrutiny ahead, it’s a timely reminder to review any existing strategies, seek trusted advice, and ensure they align with the letter of the law.

Shadow economy in the crosshairs

The ATO is also cracking down on the “shadow economy” – cash-in-hand dealings and undeclared income. While only a handful of SMEs are believed to engage in deliberately dishonest behaviour, the ATO says the ripple effect on compliant businesses and public services is significant.

“Deliberate shadow economy behaviours contribute nearly 60% of the gross small business income tax gap – or around $11.2 billion,” Day explained. “Approximately $8.9 billion of this is associated with underreporting of income and over-claiming of deductions. The remainder is hidden wages and people operating completely outside the tax system.”

To fight back, the ATO is enhancing its anomaly detection tools – such as flagging unusually low sales for a sector – and sharing intelligence across agencies via the Shadow Economy Taskforce.

Industries most exposed to cash transactions – like construction, hospitality, cleaning, and ride-sharing – should expect closer scrutiny.

Prepare for a new era of tax enforcement

The 1 July changes mark more than the start of a new financial year – they signal a shift in how the ATO engages with small business compliance.

Audits will become more targeted, digital surveillance more sophisticated, and there will be less leniency for practices that push the boundaries of what’s acceptable. The ATO is also tightening expectations around debt management and placing greater responsibility on advisors to guide clients responsibly.

For compliant businesses, this isn’t cause for alarm, but taking steps now to review your tax position and stay informed can help you navigate the changes with confidence and avoid unnecessary disruption down the track.

Stay ahead of ATO debt while keeping cash flow intact

With the ATO stepping up enforcement and interest costs rising, SMEs can no longer afford to treat tax debt lightly.

Octet’s innovative working capital finance solutions, such as Trade Finance and Debtor Finance facilities, can help to optimise your cash flow, enabling you to efficiently repay ATO debt and minimise its impact on your business. By securing tailored finance, you can clear their ATO debts and focus on what you do best – growing your business.

Disclaimer: These comments are only 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.

What tariffs on Australian exports mean for trade, currency, and confidence

Posted on May 29, 2025 by Russell Walsh

As the United States implements its new protectionist trade policies and China races to offset export pain with internal stimulus, the global trade map is shifting fast – and businesses are bracing for the impacts on Australia.

But an expert on the markets says “it’s not as doom and gloom as the papers make out” when it comes to the tariffs. Peter Dragicevich, Currency Strategist (APAC) at Corpay, notes that, while “there are headwinds, there are offsets, too.”

Peter acknowledges uncertainty still looms large, but notes conditions on the home front are gradually improving, with interest rates easing and targeted federal support available for trade-exposed sectors.

For businesses navigating international trade, these shifts in decades-long norms may require new approaches. But they also present opportunities – for those willing to grab them.

Tariffs on Australian exports: The pros and cons

While the imposition of a 10% tariff on Australian exports does add pressure for some sectors – notably beef, gold, and pharmaceuticals – the broader picture is more muted. Even for affected sectors, it’s likely exporters will be able to find new markets, says Peter.

“If there’s less demand in the US because of high prices, those products could be redirected into other countries where the supply would be absorbed,” notes Peter.

At the same time, China – Australia’s largest trading partner, making up 32% of our total exports – is investing in its own economy, ramping up construction and infrastructure development. Peter says that could be a boon for Australian commodities like iron ore, Liquefied Natural Gas (LNG) and coal.

“If the Chinese authorities are trying to stimulate their domestic economy to offset the tariff pain, that’s actually a net offset for Australia,” Peter says.

Australian dollar forecast 2025: Will the AUD strengthen?

Few areas of the economy reflect global uncertainty more directly than the dollar. In 2025, the Australian Dollar (AUD) has already swung widely in response to global disruption – including its largest single-day drop in 15 years.

“The Aussie’s traded in a very wide range this year, and that’s a function of what’s happening offshore, not domestically” says Peter. He notes the volatility is unlikely to fade in the short term, with markets continuing to react sharply to trade deal announcements and political rhetoric.

“We will see more bursts of volatility coming through over the next couple of quarters, particularly before more definitive trade deals are struck,” Peter explains. “You’re one tweet away from things just kind of unwinding very sharply.”

Still, the broader trajectory could work in Australia’s favour. As China and Europe look to stimulate growth internally and the US economy slows, the Australian dollar may strengthen. Peter expects the AUD to trend upwards towards the high 60s or even low 70s against the US dollar over the next 12–24 months.

He also points out that, historically, the AUD is still below its long-term norm. “The average for the Aussie since it floated in the 1980s is 75c. Right now we’re still below where purchasing power parity suggests it should be,” says Peter. “From a business perspective, it’s about hedging your risk and hedging your exposure.”

Risk, resilience and preparing for global trade uncertainty

For Australian exporters, the next year won’t be without challenges – but those that act decisively will be best placed to thrive.

“There’s a lot of push-pull factors people need to consider, but overall, the main economic hit to Australia won’t be overly large,” Peter concludes.

Combined with lower interest rates and zero-interest government loan facilities for affected exporters, there’s growing potential for cautious optimism. But seizing that opportunity requires more than waiting for conditions to improve – it means taking action now to manage exposure and maintain control.

In this environment, Trade Finance isn’t just a safeguard – it’s a smart strategy. It empowers businesses to reduce uncertainty, unlock working capital, and move forward with confidence.

Whether it’s Trade Finance, cross-border payments in collaboration with Corpay, or our market-leading supply chain technology, Octet gives Australian businesses the tools and support to trade smarter – whatever the economic outlook. Talk to us today about how we can help your business.

Disclaimer: These comments are only 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.

Financing business growth: 3 ways Trade Finance can help SMEs scale

Posted on May 21, 2025May 22, 2025 by Russell Walsh

Despite a background of economic uncertainty, more than half of Australian small and mid-sized enterprises (SMEs) plan to invest in growth this year, according to research by NAB.

But optimism alone doesn’t drive expansion. Businesses looking to scale or enter new markets need access to reliable funding. For growth-focused businesses, Trade Finance can be a tactical tool to enable faster business growth.

“Every business wants to grow,” says Sam Ralton, Director of Working Capital Solutions VIC, TAS, SA at Octet. “It’s really a matter of whether they want to grow quickly or take their time. If they’re looking to scale faster, Trade Finance can help them do just that.”

Using trade finance to strengthen your business financing strategy

While many businesses see Trade Finance as a short-term solution they can use to bridge temporary cash flow gaps, it can also be a powerful tool for funding business growth, allowing businesses to seize opportunities without draining their cash reserves.

From increasing purchasing power to de-risking expansion and managing external shocks, here are three ways Trade Finance can support your business growth.

1. Accelerate business growth by unlocking your purchasing potential

For importers and exporters, growth often hinges on how quickly they can secure and sell stock. The slower the cycle, the more capital gets trapped in inventory. Trade Finance unlocks the ability to act earlier and at greater scale.

“You’re multiplying your purchasing power – and that speeds up growth,” said Sam. “You’re not waiting for sales to free up cash, which means you can capture opportunities you might have missed.”

It’s not just about volume, either. Faster procurement can help you secure in-demand stock ahead of competitors, as well as improving supplier relationships and securing early payment discounts.

2. Use Trade Finance to enter new markets with confidence

Entering a new product category or geographic market often means laying out capital before revenue is guaranteed.

Many businesses remain concerned about the impacts of the US tariffs and trade tensions with China, but despite the recent softening, the risks of market expansion will never completely disappear, notes Sam. He adds that Trade Finance can help businesses test demand without overcommitting.

“If you’ve done your forecasting and calculations, and understand the markets you’re entering, Trade Finance can absolutely help you enter a new market faster.”

This kind of agility is especially valuable in uncertain or fast-moving sectors, where the timing of a market entry can determine its success. By using Trade Finance to fund an initial wave of stock or supplier agreements, businesses can assess early performance and scale their commitment accordingly.

3. Financing strategies to navigate cost and supply chain risks

Trade Finance also offers advantages in today’s unpredictable market conditions. When tariffs shift, interest rates rise or global shipping delays threaten supply chains, being able to act early can protect margins.

While some businesses prefer to wait out the uncertainty, others are using finance to secure goods now, at today’s prices, says Sam. “If you think costs are going to rise, then securing good pricing now becomes possible with Trade Finance.”

“There’s always going to be uncertainty,” Sam notes. “You can think the world’s going to end, but you still have to go out, buy goods, sell them, and keep moving. You can panic and do nothing – or you can just keep trying to grow your business.”

Proactive business financing strategies for faster growth

In an uncertain economy, it’s often the ability to act decisively that separates high-growth businesses from the rest.

For SMEs with solid forecasting and a clear strategy, Trade Finance can be an enabler of growth – not just a financial safety net. “It’s about being proactive with your finance,” says Sam. “Structuring your business so you can grow quicker, rather than waiting.”

Instead of relying solely on retained earnings or reacting to financial pressure, businesses can use Trade Finance as a tool to support expansion and respond to opportunities as they arise. When growth is the goal, waiting for organic momentum to build may mean missing the moment.

Power your growing business

Scaling your business in 2025? Octet’s flexible working capital solutions can align with your growth strategy to optimise cash flow, fund global supplier payments and seize opportunities. Talk to our supply chain finance experts today and we’ll help you find the best option to accelerate your business growth.

Disclaimer: These comments are only 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.

Octet and Corpay Cross-Border help party supplies business thrive during peak season

Posted on May 13, 2025May 14, 2025 by Russell Walsh

For more than two decades, a leading Australian manufacturer and distributor has been supplying the retail and hospitality industries across Australia and New Zealand with high-quality, innovative party supplies.

But like many businesses with seasonal demand fluctuations, managing cash flow ahead of peak periods was a recurring challenge. With significant upfront costs required to maintain stock levels, combined with supply disruptions, the business needed a reliable working capital finance solution to bridge their cash flow gap.

Recognising their client’s challenges, Corpay Cross-Border engaged Octet to structure a tailored Trade Finance solution, ensuring the business had access to funding precisely when it was needed.

Managing the cash flow challenges of seasonal demand

Since its inception in the early 2000s, the family-owned business has led the way in designing sustainable hospitality and party supplies that combine style and practicality. With a strong focus on product innovation, it has established itself as a market leader. However, managing the seasonality of its business remained a key hurdle.

Each year, Christmas and the holiday season drive peak demand, requiring large bulk orders to be placed months in advance. Compounding this challenge is the Lunar New Year shutdown, during which many overseas manufacturers halt production. Without sufficient purchasing power, the company risked missing sales opportunities or facing stock shortages.

Corpay, a global leader in cross-border payments, identified that while FX hedging could help the company manage currency fluctuations, an increased Trade Finance facility was also essential to keep up with demand. Corpay’s Head of APAC Enterprise Sales, Michelle Mak, introduced the business to Octet, confident that its supply chain finance solutions would be the perfect complement to Corpay’s FX expertise.

Through this timely introduction, the business gained access to Octet’s flexible Trade Finance facility, designed to enhance cash flow and enable efficient stock procurement. Simultaneously, Corpay’s FX hedging tools were integrated into the overall solution, allowing the business to mitigate foreign exchange risk on international purchases.

A Trade Finance solution for immediate purchasing power

To ensure the company had the liquidity needed ahead of the seasonal rush, Octet’s Director of Working Capital Solutions VIC/TAS/SA, Sam Ralton, structured a $290,000 Trade Finance facility. This solution gave the business the purchasing power required to place bulk orders at the right time, rather than waiting for natural cash flow cycles to fund purchases.

The benefits of the Trade Finance facility were immediate:

Optimised stock purchases – The business could secure inventory before demand surged, ensuring products were available when customers needed them.
Faster sales capture – Instead of delaying orders, the company could stock up in advance, leading to earlier revenue realisation.
Supply chain resilience – With stock secured ahead of the Lunar New Year shutdown, the company avoided potential delays.
Integrated FX risk management – With Corpay’s FX solutions, the business mitigated currency risk, ensuring smoother international transactions.

Beyond addressing short-term cash flow challenges, Octet’s Trade Finance solution helped to strengthen the business’s long-term financial position. With enhanced purchasing power, the company is now better equipped to negotiate supplier discounts, maintain steady stock levels, and scale operations efficiently.

“By leveraging Octet’s intelligent supply chain finance platform, the company has streamlined payments to suppliers, improved efficiency, and positioned itself for sustainable growth,” explains Sam.

How the Octet and Corpay collaboration creates value

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:

Flexible Trade Finance	Octet provided working capital exactly when it was needed, without the restrictions of traditional bank lending.
Currency risk management	Corpay’s FX hedging ensured that international purchases were protected from market fluctuations.
A seamless supply chain finance experience	The integrated solution optimised cash flow and simplified supplier payments.

“This success story underscores the value of the Octet-Corpay partnership — combining Trade Finance and cross-border payment solutions to help Australian businesses like this one stay competitive and grow with confidence,” says Sam.

A partnership for sustainable growth

For Octet and Corpay, the collaboration reinforces their commitment to offering tech-enabled financial solutions that empower businesses to grow — without the constraints of traditional banking.

If your business is facing cash flow constraints, especially when managing seasonal demand, a flexible working capital finance solution could be the key to unlocking growth.

By partnering with Octet and Corpay, you gain access to:

Tailored Trade Finance solutions that enhance local and global supplier purchasing power
Integrated FX risk management to protect against currency fluctuations
A streamlined platform for managing both working capital and supplier payments

Whether you operate in wholesale, retail or manufacturing, Octet’s working capital specialists are here to support your business growth. Speak to our team today.

Disclaimer: These comments are only 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.

Trade Finance accelerates cash flow and growth opportunities for Australian Photo Supplies

Posted on May 7, 2025May 8, 2025 by Russell Walsh

Australian Photo Supplies (APS) is a leading distributor of photo imaging products across Australia and the Pacific Islands, serving commercial printing labs, retailers, and wholesalers. Established in 1992 and headquartered in Victoria, APS has expanded its offerings to include a diverse range of products such as instant cameras, corporate packages, passport photo solutions, and commercial printers. The company’s commitment to providing efficient supply chain solutions has been key to its growth.

During the COVID-19 pandemic, APS’s largest buyer reduced orders, affecting cash flow and inventory management. With declining sales, APS struggled to balance operational costs, maintain supplier relationships, and manage cash flow. As the pandemic subsided, buyers very quickly returned to larger orders, presenting a new challenge: meeting demand without compromising financial stability.

Managing cross-border payments and cash flow

To meet the rapidly increasing client demand, and achieve their growth objectives, APS needed a finance solution to optimise payments to overseas suppliers and improve cash flow. In their search for effective payment options APS discovered Octet, and after assessing their requirements, applied for OctetPay.

“OctetPay provided us with a great solution for paying our invoices using credit cards while benefiting from competitive foreign exchange (FX) rates,” explains Joe Tresckitta, CEO and Director at APS Logistics Group. “This made our supplier payments more efficient.”

However, with increasing stock requirements and larger orders, APS needed more tailored financing to handle cash flow challenges and delayed payments.

Australian Photo Supplies headquarters in Somerton, Victoria

Tailored Trade Finance to optimise cash flow and support growth

“After reviewing APS’s needs, it became clear that a working capital solution, such as Trade Finance, would be a better fit to support their business in the long term,” says Jack Ahdore, Business Development Executive at Octet.

Trade Finance provides a flexible line of credit to power international and domestic trade transactions. This facility offers:

from $100,000 up to $12 million in credit
repayment terms up to 120 days, including up to 60 days interest-free
the ability to pay suppliers in 72 countries at competitive FX rates in 15 currencies
easier management of payment delays, currency fluctuations, and credit risks

Octet structured a tailored $300,000 secured Trade Finance facility, designed to help APS accelerate both domestic and international transactions. The facility offered several benefits that directly addressed their requirements:

- ✓Improved cash flow: Immediate funding for overseas suppliers kept cash in the business
- ✓Mitigated currency fluctuations: Competitive FX rates helped APS avoid losses due to exchange rate fluctuations
- ✓Provided growth opportunities: Freeing up cash allowed them to reinvest in areas such as expanding product lines and growing the APS Logistics Group (warehousing and distribution arm of the company)

By ensuring timely payments, the Trade Finance facility enabled APS to maintain strong relationships with overseas suppliers, with the potential to secure preferential terms and priority stock availability.

“This reliability allowed us to avoid stock disruptions and meet customer demand quickly, giving us a competitive edge,” notes Joe.

Joe Tresckitta, CEO & Director of APS Logistics Group, says Octet working capital solutions give his business a competitive edge

Empowering Australian businesses with flexible Trade Finance solutions

“With tailored finance and competitive FX rates, APS was able to streamline international transactions, strengthen supplier relationships, and scale its operations effectively,” adds Jack.

For businesses like APS that rely on international suppliers, managing cash flow is crucial. Octet’s Trade Finance facility offers a flexible and secure solution to optimise payments, reduce financial risks, and support business growth. It also helps to accelerate cash flow in your business.

To discover whether Trade Finance is the right solution for your business, talk to us today and we’ll help you find the best option to accelerate your business growth.

For further information on Australian Photo Supplies products and services, visit australianphotosupplies.com.au

Disclaimer: These comments are only 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.

Key changes will increase costs for ATO tax debt repayments – are you prepared?

Posted on May 4, 2025May 6, 2025 by Russell Walsh

From 1 July 2025, managing ATO tax debt is going to cost businesses more, with the ATO seeking to reduce the record-high $53 billion in collectable debt it reported at the end of FY24.

Under the newly passed legislation, taxpayers will no longer be able to claim a tax deduction for ATO interest charges, including the General Interest Charge (GIC) and Shortfall Interest Charge (SIC).

With the change it appears clear that the ATO is looking to change the perception that they are like a small business bank. But it was never actually the case. With interest cost well over 11% compounded daily, it is already both expensive and dangerous to carry ATO debt in this climate.

These changes, coupled with stricter ATO payment plan requirements are a wake-up call for those relying on ATO plans as a cash flow buffer.

Here’s what’s changing, why it matters, and how businesses can meet their tax debt obligations.

What are the ATO tax debt changes?

Currently, businesses that incur interest charges on tax debt can deduct these costs from their taxable income, reducing the overall financial burden of carrying tax debt. That will no longer be the case for General Interest Charge (GIC) or Shortfall Interest Charge (SIC) incurred on or after 1 July 2025.

“This is not a new cost – businesses have always paid interest on tax debts, which was tax deductible,” explains Campbell McCallum, Octet’s Chief Financial Officer. “Now, it’s not, which means it’s more expensive for businesses to carry that debt.”

Businesses may still apply for interest remission under existing ATO guidelines if there are valid grounds, but the criteria for ATO payment plans will be stricter. Payment plans for smaller debts (under $200,000) now require a 10% upfront payment and a 24-month repayment cap. Larger debts (over $200,000) will demand significantly more paperwork for businesses applying for payment plans, including multi-year financial statements, cash flow projections, and even collateral.

What do the ATO tax debt changes mean for SMEs?

For SMEs, and the financial advisors and brokers who support them, the removal of interest deductibility and tougher repayment terms could have consequences for those who’ve leaned on ATO arrangements as part of their cash flow strategy.

Without the tax deduction safety net, deferring tax obligations will become more expensive (well over 15% after tax) for the businesses that depend on them. For companies operating on thin margins or managing seasonal revenue flows, that could significantly constrain working capital.

“Many businesses underestimate their tax liabilities, leading to significant accumulations of debt. It’s crucial for business owners to maintain a proactive approach to their tax obligations,” says Olga Koskie, Principal at Tax Assure.

In August 2024, the ATO reported that small businesses owed approximately $35.6 billion in unpaid tax debts, accounting for about two-thirds of the total collectable debt.

The stricter payment plan approval process also reduces flexibility. Businesses may now be faced with administrative hurdles, or even see their applications declined.

Then there’s the enforcement. “If businesses aren’t in a payment plan, the ATO can take further action – even winding them up or holding directors personally liable,” warns Olga.

Impacts of removing interest deductibility on tax debt repayments

The ATO’s new approach sends a clear message that tax debts are no longer a low-cost way to smooth out cash flow. For businesses that rely on deferrals or late payments to manage liquidity, this marks a fundamental shift. It appears much riskier for businesses to have tax debt now than it was a year ago.

The example below shows the effect of the changes from 1 July 2025. Based on GIC for April to June 2025 of 11.17%, the additional cost to the business would be approximately $17,724 from 1 July 2025 onwards.

Scenario	Before 1 July 2025	From 1 July 2025
Profit before interest and tax	$300,000	$300,000
Deductible Interest Rate (GIC) at 11.17%	$59,079	$0
Taxable profit	$240,921	$300,000
Taxation	$72,276	$90,000
Effective GIC % with tax deduction on interest removed		15.36%
Additional cost to the business with tax deduction on interest removed		$17,724

Note: The above table is based on an annual tax rate of 30% and assumes no change to the GIC after 1 July 2025.

The ATO has also increased the issuance of Directors Penalty Notices (DPNs) in the instances when a company fails to meet its tax obligations. This can have severe implications for a business.

“DPNs can trigger insolvency proceedings, leading to the liquidation of the company,” explains Campbell. “This not only affects the business’s operations but also impacts the directors’ personal finances and creditworthiness.”

Working capital solutions can help your business manage tax debt

While the changes bring more challenges for businesses, they also present an opportunity for businesses to reassess their financial strategy. Getting ahead of the changes now means SMEs can protect their bottom line and improve their financial resilience through smarter funding options that are less than 15.36%.

Paying down existing tax debts before the 1 July 2025 cut-off date will soften the transition. At the same time, looking beyond the ATO for support through tailored working capital finance could offer a smarter, more sustainable alternative for managing debt and improving cash flow.

“Working capital finance can help businesses not only repay existing debt but also meet their ongoing liabilities and accelerate cash flow, especially if their revenue is lumpy,” says Campbell. “Supplementary Trade Finance, for example, provides businesses with a revolving line-of-credit to pay suppliers, freeing up funds to separately meet tax debt obligations.”

Whether you’re a business owner navigating day-to-day operations or a commercial finance broker supporting clients through complex decisions, now’s the time to act.

Discover Octet’s working capital solutions today

Olga Koskie is a lawyer and business advisor with more than 20 years’ experience. Tax Assure is a specialist tax debt advisory firm, working with the ATO and state revenue offices to support the management of accumulated tax debt.

Disclaimer: These comments are only 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.

Is globalisation reversing? How US protectionist policies could impact Australian businesses

Posted on April 4, 2025April 12, 2025 by Russell Walsh

UPDATED 4 APRIL 2025

Trump’s new tariffs target 100+ nations – including a 10% tariff on Australian goods

On 3 April 2025, United States’ President Donald Trump has announced the country will impose tariffs on more than 100 of the country’s trading partners, including a 10% tariff on Australia.

Prime Minister Anthony Albanese said the new tariffs “undermine” Australia and the US’s existing free trade agreement. “Our existing free trade agreement with the United States contains dispute resolution mechanisms. We want to resolve this issue without resorting to using these.”

The sweeping tariffs also include:

34% tariff on Chinese imports on top of the previously announced 20% tariff
20% tariff on the European Union
24% on Japan
26% on India
10% on New Zealand.

In a bizarre move, a 29% tariff has been imposed on Norfolk Island, an Australian territory.

As a result of the tariffs, the market is now expecting a further four rate cuts from the RBA this year, according to the Australian Financial Review, taking the cash rate down from 4.1% to 3.1% by the end of 2025.

Albanese announces new policy measures to counter impact of new tariffs

The Prime Minister has announced five new policy measures to bolster the resilience of the Australian economy in the face of the tariffs. As reported by ABC News, these include:

strengthening Australia’s anti-dumping regime for key sectors like steel, aluminium and manufacturing
$50 million for affected sectors, provided through peak bodies such as the National Farmers Federation, to chase new markets, backed by five new trade missions
an “economic resilience program”, funded by the National Reconstruction Fund, to provide $1 billion in zero-interest loans
pushing Australian companies to the front of the queue for government procurement
and establishing a critical minerals strategic reserve.

Is this the end of globalisation? How US protectionist policies could impact Australian businesses

“The era of increasingly free and extensive international trade, built upon a rules-based system that the U.S. was instrumental in shaping, has drawn to an abrupt end,” Eswar Prasad, a professor of trade policy at Cornell University, told the New York Times. “Rather than fixing the rules that many U.S. trading partners admittedly took advantage of to their own benefit, Trump has chosen to blow up the system governing international trade.”

The International Monetary Fund (IMF) has previously wanted that increased protectionism could hurt global growth. “There is definitely a direction of travel here that we are very concerned about, because a lot of these trade-distorting measures could … ultimately be harmful not only to the global economy, but also hurtful for the countries who implement them,” commented Pierre-Olivier Gourinchas, the IMF’s Chief Economist.

While the impact of the tariffs on Australia’s economic outlook remains uncertain, supply chain disruptions, rising costs and increased competition are likely consequences – issues that businesses must navigate with agility, particularly when it comes to managing cash flow.

UNSW Economist Scott French cautions that even if Australia avoids direct tariff impacts, it will not be immune from the international fallout. “It’s difficult to predict exactly how Australia would be affected,” says French, noting that “trade policy uncertainty from just the threat of a trade war has similar effects on business activity as actual tariffs.”

US tariffs on Canada and Mexico could impact Australia

The US has officially imposed 25% tariffs on Canadian and Mexican goods. These tariffs are expected to raise costs for businesses and disrupt global supply chains.

For Australia, this could result in higher prices and supply delays for goods that pass through or originate from North America. Industries such as manufacturing, automotive and agriculture – which source machinery, components and raw materials from Canada or Mexico – may face rising costs.

Beyond direct costs, the tariffs could reshape global trade flows, with exporters seeking alternative markets, both in and out of the US. Canada and Mexico could redirect exports to Australia, increasing competition for Australian agriculture, energy and metals sectors.

French notes one positive effect for Australia of US tariffs is trade diversion. “Because they raise the price of other countries’ exports to the US, they may make some Australian exports more competitive. For example, the tariffs on Canadian aluminium would have shifted US demand toward aluminium produced in Australia.”

Joshua Richards, Director of Twin Peaks Finance, has already had clients raise concerns about the tariffs. “One of our clients is a major importer from Canada. Almost immediately, they were asking, ‘What does this mean for us? How will it affect our supply? And how do we pivot to domestic supply if we need to?’ They were already considering how to fund a shift to domestic sourcing. It might be more expensive, but it offers greater certainty in securing the product.”

For importers, securing working capital to manage potential rising costs and delays will be crucial. Octet’s supply chain finance solutions can help businesses bridge payment gaps, ensuring they can continue to source essential materials without straining their cash flow.

Australia fails to secure exemption on steel and aluminium exports

In February 2025, President Trump announced a 25% tariff on all steel and aluminium imports, aiming to boost US domestic production by making foreign metals more expensive.

However, AMP’s Chief Economist, Dr Shane Oliver, downplayed the potential direct impact on Australia to the Accounting Times. “Even if Australian exports are not exempted from US tariffs, the direct economic impact on Australia will be minor. Steel and aluminium exports to the US are just 0.03% of Australian GDP and total goods exports to the US are just 0.8 per cent of GDP.”

Instead, he warns of a broader economic risk, stating: “The main threat to Australia would come via Trump’s tariffs leading to less global trade and a hit to Chinese and global GDP, weighing on demand for our exports and hence our GDP.”

How US tariffs could affect Australia’s trade with China

The US has imposed a new 34% tariff on Chinese goods, on top of the 20% tariff announced earlier this year. China is Australia’s largest two-way trading partner, according to the Department of Foreign Affairs and Trade, accounting for 26% of our goods and services trade with the world in 2023-24. During that period, two-way trade with China increased 2.6 per cent, totaling $325 billion.

If the tariffs weaken China’s broader economy, Australian businesses could feel the heat. Diversifying trade relationships will be critical.

However, there are reasons to be hopeful: China absorbed the tariffs of the previous Trump administration and recent economic data suggests resilience in China’s economy. If China maintains steady industrial growth, the impact on Australian exports may be limited. For businesses exposed to these risks, diversifying supply chains and securing alternative funding sources will be critical.

Strengthen your supply chain to navigate uncertainty in global trade

Australia remains highly vulnerable to global shifts in trade policy, with limited influence over American trade policy.

As the new policies reshape global markets, agility and reliable funding are more critical than ever. Octet’s innovative working capital solutions, such as tailored Trade Finance and Debtor Finance, empower Australian businesses to navigate supply chain issues, manage rising costs and seize new opportunities – while optimising cash flow.

Connect with our team today to explore how we can power your business growth through uncertainty.

Disclaimer: These comments are only 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.

Octet working capital solutions fuel growth for freight company

Posted on March 17, 2025 by Russell Walsh

Running a freight forwarding business means managing multiple moving parts—timely deliveries, supplier relations, and financial liquidity to keep everything flowing smoothly. For a freight forwarding company based in Western Australia, cash flow became a significant bottleneck to their growth. Despite being profitable and experiencing strong sales growth, the company faced tight financial constraints due to limited access to working capital. That’s when they partnered with Octet to address their immediate challenges and set them up for future growth.

Cash flow strain from restrictive financing

The company’s existing debtor finance facility with another financier was both costly and inefficient. While the business was growing, the existing cash flow funding didn’t keep pace with the increased sales, creating a substantial cash flow gap. The company was also dealing with stretched supplier relationships and an ongoing ATO debt under a repayment arrangement, which added to the pressure.

In addition to the debtor finance line, the company had a bank loan that came with restrictive terms and security requirements, further limiting their financial flexibility. With future expansion in mind, the business needed to find a more robust financing strategy to support their growth plan, so they engaged Shane Crouch, Director of Comden Financial Group.

A tailored, innovative finance solution

Recognising the need for a more effective working capital solution, Shane introduced the business to Octet’s Director of Working Capital Solutions VIC/TAS/SA, Sam Ralton, who then collaborated with Nigel Thayer (Octet’s Director of Working Capital Solutions for WA). With a deep understanding of the unique cash flow challenges in the freight forwarding industry, Nigel proposed a tailored multi-facility solution that provided a significant funding boost to alleviate financial pressure.

The package included:

$1.4 million Debtor Finance Facility – Allowed the business to access the cash tied up in unpaid invoices, providing immediate liquidity to keep operations running smoothly and reduce payment delays.
$50,000 Trade Finance Line – Ensured goods could continue moving through the supply chain without delays, improving supplier relations and payment efficiency.
$450,000 Term Loan – Aimed at paying off the restrictive bank loan, the term loan provided the company with more flexibility, offering a three-year repayment term and freeing up much-needed cash for day-to-day operations.

The Managing Director of the freight forwarding company stated: “The Team at Octet made the funding process seamless, providing a tailored solution that aligned with our business needs. Their expertise, professionalism, and efficiency in approving and setting up the facility were invaluable.”

With Octet’s tailored solution, the company could pay down key suppliers, meet their ATO obligations with greater ease, and position themselves for growth in new markets.

Shane adds: “Octet had a comprehensive understanding of the situation, and they acted swiftly and efficiently to secure the required financing. Moreover, they were able to assist by providing an additional $500k at the last minute to resolve an issue caused by the outgoing financier.”

Stronger cash flow and future growth opportunities

Since the finance facilities were put in place towards the end of 2024, the business has already seen a positive transformation. The Octet working capital facilities have helped the company:

streamline cash flow
strengthen supplier relationships
expand into new markets

“From the very beginning, Octet took the time to fully understand my client’s business and its unique needs, which was critical in ensuring the right solution,” continues Shane. “Thanks to their dedication and professionalism, we were able to achieve a favourable outcome.”

In an industry where cash flow is the lifeblood of operations, working capital finance can provide the flexibility needed to thrive. By partnering with Octet, this freight forwarding business gained a tailored financial solution that addressed their immediate challenges and set them up for the future.

“Octet provided a flexible structure that has helped improve our cash flow and overall financial position, allowing us to focus on growth with confidence,” said the Managing Director. “We appreciate their genuine proactive approach and ongoing support.”

Power your growing business

If your business is experiencing cash flow challenges or you want to capture new opportunities for rapid growth, Octet empowers businesses across a range of industries, including transport, wholesale, and manufacturing. We work successfully with Australian businesses facing these same growth challenges every day, providing innovative Trade Finance and Debtor Finance working capital solutions and supply chain finance technology.

Speak to our team of working capital specialists to see how we can power your business growth today.

Disclaimer: These comments are only 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.

Trade Finance helps toy retailer overcome seasonal cash flow challenge

Posted on February 18, 2025February 20, 2025 by Russell Walsh

For any retailer, especially an online toy store, the festive season is both a major opportunity and a significant challenge. This was the situation one rapidly growing Australian toy retailer experienced. With a sharp increase in customers rushing to purchase the latest toys, cash flow pressures threatened their ability to make the most of this key time of year.

The solution came in the form of working capital finance from Octet. This strategic partnership not only helped the retailer manage cash flow during one of their busiest periods but also laid the foundation for future growth.

Cash flow struggles due to seasonal demands

Like many online retailers, this business faced seasonal cash flow challenges, particularly leading up to Christmas. While demand surged, the retailer struggled to balance inventory needs with slow customer payments, often finding themselves in a cash crunch. This left them unable to pay suppliers on time or invest in stock to meet growing demand.

The toy industry operates on thin margins, especially during peak periods. Stocking popular brands requires significant upfront investment. With much of their revenue tied up in pending orders, the retailer lacked the cash flow to cover these costs. They were stuck waiting for customer payments, limiting their ability to purchase new inventory and capture additional sales.

Further, the need to pay suppliers upfront to secure competitive pricing added more pressure. This made it difficult to maintain strong supplier relationships which could result in the retailer missing out on sales and failing to meet customer expectations. With the holiday season fast approaching, they needed more financial flexibility to navigate these challenges or risk losing out on the busiest time of the year.

Tailored Trade Finance helps manage cash flow

Recognising the urgent need for more working capital, the retailer reached out to Octet for a solution. Dan Verdon, Director of Working Capital Solutions – NSW, worked closely with them to understand their unique cash flow needs and challenges. After reviewing their business model, Octet proposed structuring a $2 million Trade Finance facility for their specific circumstances.

“Once we understood the business and their challenges, we knew they required a tailored solution that gave them the breathing room to meet customer demands without worrying about cash flow,” says Dan.

With Octet’s Trade Finance facility, the retailer gained quick access to funding, allowing them to purchase stock ahead of the holiday season, including high-demand items. The flexibility of the arrangement enabled the retailer to pay suppliers on time and unlock inventory without delay. They could now focus on meeting customer demand, rather than scrambling for funds or dealing with tight cash flow cycles.

A partner to support growth of the business

The benefits of working with Octet were immediately clear. Not only could the retailer fulfill orders on time and restock popular toys without delay, but they were now also positioned for long-term, sustainable growth.

“By utilising Trade Finance, the retailer gained better control over cash flow, providing the stability needed to scale operations without worrying about running out of cash,” explains Dan.

With Octet as a trusted financial partner, the retailer gained the confidence to expand their product range, explore additional sales channels and pursue larger growth opportunities.

Power your growing business

If your business is experiencing cash flow challenges or you want to capture new opportunities for rapid growth, Octet empowers businesses across a range of industries, including retail, wholesale, and online sales. We work successfully with Australian businesses facing these same growth challenges every day, providing innovative Trade Finance and Debtor Finance working capital solutions, paired with market-leading supply chain finance technology.

Speak to our team of working capital specialists to see how we can power your business growth today.

Disclaimer: These comments are only 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.

How to improve cash flow in your business

Posted on November 12, 2024February 16, 2025 by Russell Walsh

Maintaining a healthy cash flow in an unpredictable economic climate is crucial for business resilience. Doing so ensures your business can meet its financial obligations and seize growth opportunities, but improving cash flow in business can be a challenge in many industries.

In this article, we provide practical information on business finance to improve your cash flow, helping your company not only survive but thrive in these more difficult economic conditions.

How to control cash flow in business

Cash flow is the lifeblood of any business, representing the movement of money in and out of the company.

Sam Ralton, Octet’s Director of Working Capital Solutions, VIC, TAS, SA, explains, “The importance of cash flow is the ability to pay for goods and services when they fall due. Profit is a snapshot of how much money the company’s earned after expenses, but that doesn’t mean that the cash flow is in a healthy position.”

In fact, many companies confuse high profit with good cash flow. While the two are somewhat intertwined, improving cash flow in business is much more about forward thinking, planning and strategy.

“In a growing business, cash flow management gets increasingly harder because although you may have good margins and you’re making a profit, there’s a lag in time before that money is available to you, and therefore the cash flow runway is restricted,” Sam explains.

Cash flow runways and forecasts

A cash flow runway is the period a business can operate before it runs out of money. Having a clear understanding of your cash flow runway helps you plan and ensures the business can cover its expenses for a set period.

Cash flow forecasts are equally important as they predict future cash inflows and outflows, allowing businesses to prepare for potential shortfalls. “Cash flow forecasts are a good tool and indicator of when your business can pull certain growth levers or, conversely, restrict unnecessary spend,” says Sam. “They’re essential to ensure you don’t spend money today that you may need in the near future.”

So, what are some practical strategies for managing your business cash flow opportunities and issues?

6 simple strategies for improving cash flow in business

Review pricing structures: Ensure pricing covers your costs and desired profit margins. Regularly review and adjust prices to reflect market conditions.
Increase sales: Implement more layered brand marketing strategies and explore new markets and product verticals to boost revenue.
Control expenses: Regularly review expenses to identify and cut unnecessary costs.
Faster payment collection: Implement stricter payment terms and follow up on overdue invoices promptly using appropriate accounting software.
Inventory management: Utilise technology to maintain optimal inventory levels, reduce any holding costs and free up cash.
Supply chain management: Negotiate better terms with suppliers to improve cash flow timings. Where it makes sense for your business model, early payments can sometimes create opportunities to discuss discounts with appropriate suppliers.

Explore our recent article on managing cash flow strategies to find out more.

Business cash flow solutions for working capital finance

Working capital finance products like debtor finance (also known as invoice finance) and trade finance can significantly improve cash flow.

Debtor Finance cash flow benefits

Debtor finance provides an instant cash injection by unlocking funds tied up in unpaid invoices. This liquidity helps cover operational expenses, supplier payments and even fund growth opportunities.

Sam advises, “Debtor finance can give you the cash flow required upfront. So if you need funds earlier, you’ve got the certainty of borrowing against your invoices rather than waiting for those payments to arrive under the original terms.”

Businesses that access debtor finance can execute more effective financial plans by better managing cash flow fluctuations and the uncertainty associated with extended payment terms or delayed payments.

Unlike traditional loans, debtor finance requires no personal assets as security. This flexibility allows you to access funds when you need them, without risking valuable assets.

Trade Finance cash flow benefits

Trade finance offers substantial cash flow benefits by providing a tailored line of credit that bridges the gap between purchasing and selling goods. This funding solution ensures that businesses do not have to tie up their cash flow in inventory that takes weeks to arrive, process and sell.

By introducing a financial partner, such as Octet, into the supply chain, businesses can access funds to pay suppliers immediately, whether they are local or overseas. This enables the business to maintain healthy cash flow, as they can repay the credit facility over time rather than having their working capital tied up in these often lengthy transactions.

Because you can set a competitive exchange rate for the transaction upfront, trade finance can also safeguard against currency fluctuations. This supports smoother and more predictable financial management and helps increase your business’ purchasing power.

Where to go for business cash flow solutions

Implementing effective cash flow management strategies and leveraging working capital finance products can help you confidently navigate economic uncertainties. But staying on top of business cash flow and utilising these strategies and products can be a complex exercise, even for the most experienced of operators.

That’s why seeking professional advice is often a good idea. Financial planners, accountants, commercial finance brokers and business finance experts can all provide valuable insights and tailored solutions. For earlier growth stage businesses, it’s really important to consult widely in order to find the most suitable cash flow advice for your unique business circumstances.

Keep your cash flowing

Improving cash flow is essential for business stability and growth. At Octet, we’re here to support your business at every stage, offering expertise and financial solutions tailored to your needs. Our working capital products are designed to help businesses in all industries manage cash flow effectively.

Our team can provide guidance on leveraging innovative supply chain finance solutions and tools to maintain consistent cash flow, crucial for sustaining and growing your business in these challenging conditions.

Disclaimer: These comments are only 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.

How debtor finance and a term loan fuelled growth for an infrastructure services specialist

Posted on October 18, 2024October 30, 2024 by Russell Walsh

A specialist in providing essential safety resources for rail infrastructure projects, our client has grown rapidly since its inception in 2019, expanding its workforce nationwide. Despite impressive revenue growth in its initial four years, the business faced significant cash flow challenges due to aged receivables and the impact of the pandemic. With mounting financial pressure threatening its expansion, the company turned to a commercial finance broker, who introduced them to Octet and its tailored working capital solutions.

Cash flow strains amidst rapid expansion

The company’s business model, operating on an hourly rate structure across multiple sites, required a sizable workforce to ensure the safety and smooth operation of large infrastructure projects. While their growth was impressive, it also created significant financial strain. A growing number of debtors and aged receivables were tying up the business’s cash, causing shortages and limiting their ability to reinvest in new projects.

The economic disruptions caused by the COVID-19 pandemic only worsened these challenges, with significant expenditures and disruptions leading to losses during 2020 and 2021. Despite their revenue growth, the business was running on tight margins, with an urgent need to access cash to fuel further expansion.

They had been working with a previous financier, but the relationship was costly and too rigid for the company’s growing needs. As cash flow issues persisted, it became clear they needed a more flexible and affordable financial solution.

A tailored working capital package

At this critical juncture, the company turned to their trusted commercial finance broker for advice. With years of experience helping businesses navigate financial challenges, the broker quickly identified that the business’s cash flow problems stemmed from their aged receivables and restrictive financing terms. The broker suggested exploring financing options with Octet, a specialist in providing tailored working capital solutions.

Octet assessed the business’s needs and offered a comprehensive financing solution.

“We were able to tailor a facility that included a $12 million debtor finance facility, which allowed the business to release cash tied up in unpaid invoices, providing immediate working capital for ongoing operations,” said Dan Verdon, Octet’s Director Working Capital Solutions – NSW.

Octet also provided a $100,000 trade finance facility to support the company’s operational needs and a $400,000 term loan to refinance the fleet of vehicles, previously financed by another lender.

With Octet’s flexible financing terms, the company was able to eliminate the restrictive 10% holding limit from its previous lender and gain access to better pricing. “This provided the business with the financial room to reinvest in its operations, complete ongoing projects, and continue expanding its workforce,” added Dan.

Cash flow freedom for future growth

The impact of Octet’s working capital solution was immediate. By unlocking cash flow tied up in receivables, the business was able to pay suppliers on time, meet payroll obligations for its large workforce, and continue bidding for new projects. The trade finance facility helped cover operational costs without depleting their working capital reserves, and the term loan for asset finance ensured their vehicle fleet could continue supporting projects nationwide.

“The combination of the facilities we structured provided the business with a solid financial foundation, allowing management to focus on their core operations without worrying about cash flow gaps,” explained Dan.

The streamlined financial solution also freed up valuable time for long-term strategic planning and growth initiatives.

With the broker’s expert advice and Octet’s support, the business is now well-positioned to continue expanding its safety services across major infrastructure projects in multiple states. Their newfound financial stability, combined with a strong company culture focused on employee well-being, has allowed them to reinforce their presence in the industry and remain a key player.

Grow your business with Octet

Via our Referral Partner Program, Octet empowers businesses across a range of industries, including labour hire, transport and construction, offering innovative Debtor Finance and Trade Finance working capital solutions.

Speak to our team of working capital specialists to see how we can power your business growth today.

Disclaimer: These comments are only 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.

Growth finance: how flexible business finance funds progress

Posted on October 1, 2024November 27, 2024 by Russell Walsh

Businesses face many challenges, and when they strive to grow, they often find that growth hampered by inadequate funding, or working capital. So how do they evolve?

In this article, discover the factors that limit business growth and explore why using cash in the bank or profits is sometimes an unsustainable approach to funding growth. If you’re ready to progress your business, it’s time to consider growth finance and find out how tailored working capital solutions can provide the right support for sustainable growth.

Growth challenges: why most businesses fail to grow

Is your business failing to grow despite your best efforts? Business growth can be difficult at the best of times, but in an environment of global uncertainty, rising inflation and slowing economies, even the world’s most successful companies are struggling to increase revenues.

McKinsey & Company conducted a wide-reaching study of the growth and performance of the 5,000 largest public companies in the world over the past 15 years. The average revenue growth in the 10 years before COVID-19 was just 2.8% a year. Only one in eight businesses surveyed enjoyed a growth rate of more than 10% a year. The post-COVID-19 years haven’t been any easier.

Economic conditions aside, businesses also make common mistakes when trying to expand. Octet’s NSW Director of Working Capital Solutions, Dan Verdon, identifies a few factors that can hinder meaningful growth and, therefore, profits.

A need for more strategic planning. “Businesses with a well-defined and communicated strategy, which aligns with their short-, medium- and long-term goals are much more likely to be successful.”
A need for more capital. “Most businesses underestimate the level of capital required for sustainable growth.”
A need for understanding where cash flow is tied up in the business. “There are four main cash flow levers: accounts payable, accounts receivable, inventory and their own cash. Understanding how to use each of those sources and when is really important.”
Scaling too quickly. “A lot of businesses might have a good product or a good service, but they grow too rapidly and then can’t sustain it.”
A need to acquire and retain talent. “Attracting and retaining good people, especially in highly skilled roles, is a major challenge for a lot of new businesses.”

The sustainable way to grow

For the best chance of success, it’s also important to identify where to concentrate your growth efforts. McKinsey & Company has discovered that businesses give themselves a much greater chance of outperforming when they invest in three pathways for growth:

Expanding the core business by focusing on excellence in the areas in which they currently operate.
Innovating in adjacent markets by seeking ways to adapt to serve new customers.
Developing breakout businesses by identifying and exploiting new opportunities.

“Having a finance partner who can help you understand what levers to pull and unlock cashflow tied up in your business can help growth in all three areas,” says Dan.

Leveraging business growth finance for expansion

To fund their growth, many businesses set annual budgets based on previous yearly figures and use internal sources of funds, such as their profits or cash in the bank, rather than external financing, such as a loan or line of credit. However, this approach can affect profitability and hamper growth by leaving businesses without the financial flexibility to invest in innovation. While avoiding debt might seem preferable, if profits are down or cash flow slows (say, due to customers taking longer to pay their bills), a business’ ability to scale, innovate and compete effectively is seriously impacted.

As we head into 2024, the economic challenges of high inflation, rising costs and a slowing global economy will continue to put a strain on business profits. Using finance to fund expansion makes sense. “Working capital facilities can support and encourage sustainable growth,” says Dan. “They are self-liquidating, so come with fewer risks than, say, a traditional fixed-term bank loan.”

How Octet can assist with financing business growth

So what are working capital finance solutions, how do they fund expansion and how can a financier such as Octet support business growth?

A streamlined working capital solution, such as Debtor Finance, (also known as invoice finance) allows businesses to access funds tied up in unpaid invoices to accelerate cash flow. By freeing up this cash, a business can capitalise on growth opportunities. This could include importing goods from new suppliers and exploring different product lines.
Looking to expand into different regions? Octet can support your business through a Trade Finance facility. Dan explains: “Say the business is in Australia and wants to expand into another country, but they can’t get finance facilities in that country. With Octet’s facility, they can donate a portion (or all) of the limit to the overseas entity (subject to the Australian parent’s credit assessment) and then use that funding for their overseas business growth requirements.”
An Octet Term Loan allows businesses to borrow up to $2 million, with flexible terms ranging from three months to three years, to unlock additional working capital to expand operations or acquire new assets.
Octet can help your business with the process of onboarding new local or overseas suppliers. “We do the verification checks of those suppliers so the business knows they’re trading with someone who is legitimate.”
Octet tailors our flexible funding solutions to a business’ needs. “We bring all the different working capital solutions – debtor finance, trade finance, credit cards – into one smart ecosystem.”
Octet helps businesses increase the visibility of their entire supply chain, allowing them to see and act on potential blocks or gaps. Supply Chain Accelerate is a flexible funding solution that pays 100% of supplier invoices instantly, while giving businesses up to 90 days to repay.

A finance solution that grows with you

Octet has a suite of fast, flexible finance solutions we can tailor to power your business growth. Speak with our team of working capital experts today to discover what’s possible for your business.

Disclaimer: These comments are only 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.

What is Trade Finance? A comprehensive guide

Posted on October 1, 2024April 14, 2025 by Russell Walsh

Australian businesses have traditionally been strong importers and exporters. As a nation, we exported $460.6 billion and imported $368.2 billion worth of goods and services in 2023.

For any business that trades internationally, cash flow can be a major stumbling block to success, particularly if they want to grow to service new markets. In fact, a lack of working capital can make even the strongest business stagnate. Do any of the following sound familiar?

You understand you need extra funding to grow, but you’ve exhausted all of the traditional funding options.
You’re confident your business will continue to flourish based on past performance, but you’re not sure how to best fund new opportunities.
You’ve borrowed all you can from your bank based on your personal or business assets, and you’re not sure where to turn next.

That’s where a Trade Finance facility can help. But what is Trade Finance? This form of funding works as a revolving business line of credit that gives you the working capital you need. It helps to plug financial gaps by immediately funding a transaction so your supply chain can continue uninterrupted. Trade finance can provide funding for new opportunities or help to shore up businesses that are feeling cash flow strain on supplier payments.

In this article, we dive into what trade finance is, the advantages of this type of facility, how you can work out if it’s right for your business and more.

The lowdown on trade finance

Trade finance is a well-established business funding solution. Globally, the trade finance market was valued at more than $15 trillion in 2024. In simple terms, Trade Finance is a business ‘line of credit’ facility that’s ideal if you buy from other businesses, whether they’re overseas or based in Australia. Trade finance is used in every industry, including retail, manufacturing, food and beverage, pharmaceuticals, healthcare, eCommerce and more.

Let’s face it – if you’re importing or even buying locally, you don’t want all your available cash tied up in paying for goods that can take weeks to arrive. And then you can’t even begin to make your money back until you have the items in stock and start selling them.

Trade Finance funding works by bridging the gap between paying for your goods and recouping your money when you sell them to customers. This kind of financing gives your business quick access to funds by introducing a trusted financial partner, such as Octet, into your supply chain.

The high-level Frade Finance process is simple:

Your business purchases goods from your suppliers, either in Australia or overseas.
Your financier extends you a tailored line of credit to pay those suppliers immediately.
You then repay your financier with extended credit terms.

Without finance, the longer it takes between ordering/receiving the goods and making payment, the longer your working capital is tied up in the transaction. Trade Finance helps bridge that general gap. As a buyer, it lets you pay your suppliers immediately and then repay the credit facility over time. As a seller, it allows you to get paid as soon as possible to keep your own cash flow healthy.

Advantages of using a Trade Finance facility

Businesses use trade finance to fund their business growth and to plug cash flow gaps. But what are the real benefits of using a trade finance facility over another form of funding? Here are our top four reasons.

Control your working capital

Choosing a business line of credit like Trade Tinance over a traditional loan means you don’t have to offer your business or personal assets as collateral.

Traditional financial institutions usually demand asset security before they lend you money. So, if you’re short on personal/director’s assets, have maxed out your borrowing limit or don’t want to use your assets as collateral to begin with, your business can stagnate.

Trade financiers often lend based on the strength of your business’ balance sheet and the risk of the supply chain transactions, not on your personal assets. They examine your overall business and transaction values to determine your credit limit. That makes it easier to grow and scale your business as your sales increase. As your transaction values and profitability grow, so can your funding limit.

This benefit is significant if your business, industry or market is experiencing supply chain issues. Disruptions to your supply chain can widen your funding gap. With Octet’s Trade Finance facility, you can close this gap and provide your business with a cash flow advantage by extending your payables by up to 120 days.

With our intelligent solution, we pay 100% of supplier invoice values, including any upfront deposit requirement. When combined with interest-free terms of up to 60 days, you’ve got a flexible and powerful financing tool for your business.

Flexibility with global transactions

International trade is complex at the best of times, so anything that makes the process smoother has to be good for your business. Using a trade finance platform makes it easy to pay global suppliers using other currencies.

Currency fluctuations are an inherent risk in any international transaction. If the rate between the Australian dollar and your supplier’s currency changes dramatically overnight, you could suddenly owe a lot more than you’d budgeted. Trade Finance can safeguard against these currency fluctuations by setting the exchange rate for the transaction upfront.

Our Supply Chain Platform gives you single-click payment across 72 countries in your choice of up to 15 currencies, which greatly reduces costly bank FX conversion fees and margins. Or you can bring your own third-party forward exchange contract to the transaction via our supply chain platform too. In just one click, you can authorise the payment, knowing that the FX is handled quickly and easily in a single, hassle-free step.

Early repayment discounts

Using a Trade Finance facility makes your cash available shortly after you receive your supplier’s invoice. This enables you to take advantage of any early settlement discounts your suppliers may offer (or you’re able to negotiate). This can ultimately save you money on your goods and services and allow you to repay your financier over a longer timeframe.

With the Octet Trade Finance solution, you can pay both international and domestic suppliers. And for those domestic suppliers, this can be related to invoices for goods or services. This flexibility allows you to use the funding and seek early payment discounts for a broader scope of supplier types and transactions than other funding options may allow.

Reduce global trading risk

Trading internationally always comes with an element of risk, and there are often few, if any, safeguards. If you’re an importer, there’s no guarantee that your goods will actually arrive. As an exporter, you risk not being paid on time, or at all, once you’ve sent the shipment.

A smart solution like our Trade Finance facility makes it easier and safer to trade, regardless of which side of the transaction you’re on. That’s because both the buyer and supplier are registered and linked to one another on the Octet Supply Chain Platform. Both parties to a transaction must sign up for the facility and be verified before it can proceed. We verify both parties to make sure they’re legitimate, which helps to significantly reduce these global trading risks.

The platform’s embedded claim and authorisation process also enables seamless communication between both parties. This ensures transparency and nullifies any payment dispute risk. It’s a win-win.

Is Trade Finance right for you?

As with any financial decision, it’s essential to do your homework and make sure both the financier and product are suitable for your business before applying for a Trade Finance facility. It’s important to ensure your finance partner has the reputation and experience to handle this type of finance securely.

The top four factors to consider when you’re researching trade finance solutions are:

Eligibility

Not all businesses are eligible for trade finance funding. A financier will base eligibility on factors such as size, industry and the business’ specific requirements. For example, our Trade Finance solution is open to profitable Australian businesses with an annual turnover of at least $3 million.

Costs

As with any financing solution, there’s a cost to using trade finance. That means you need to understand your profit margins and expenses so you can build the finance fees into your supply chain.

The cost of a trade finance product varies depending on the length of time you use it and the type of facility. But once factored into your budget, the facility fees can become a normal business cost.

Product suitability

Most financiers offer a range of products, but not all will suit your business. Do your research and seek advice on which product is best for you in your circumstances.

In addition to our Trade Finance product, we also offer Debtor Finance, Supply Chain Accelerate and OctetPay. You might find that a combination of these products may be the best fit for your business. In fact, by combining Debtor Finance and Trade Finance facilities on our Supply Chain Platform, we can give your business an integrated funding package. Incorporating both facilities gives you a back-to-back financing solution featuring:

a business line of credit to pay suppliers, with extended repayment terms (Trade Finance)
an instantly drawable funding source leveraged against your receivables (Debtor Finance).

This can simplify those periods of rapid growth, especially when you win new projects or contracts with initial expenditure requirements. With these solutions, you can leverage the increased sales revenue and mobilise that cash flow to close the funding gap.

Clear obligations

Most financial products can appear complicated when you start out, but they should have clear terms that they require both parties to follow.

Make sure you understand any obligations that come with the funding facility. If you’re unsure of anything, get your financier to explain exactly what you need to do to fulfil your obligations for their product.

Octet’s Trade Finance: close the cash flow gap

Octet’s Trade Finance facility gives you the power to bridge the cash flow gap. To be eligible, your business will generally need to have:

a turnover of at least $3 million
been trading profitably for at least two of the past three financial reporting periods
a positive balance sheet net worth
up-to-date ATO payments
current management and financial accounts.

The amount of funding you can access depends on your business. We’ll look at your most recent financials and management accounts to calculate a limit based on factors including:

your equity
your cash position
how profitable your business is.

Advantages of our Trade Finance facility

Close your working capital gap. We offer up to 120-day repayment terms and 60 days interest free, so you can pay your suppliers immediately and then repay us over time.
Unsecured. Our non-bank trade finance can be completely unsecured, meaning that we don’t require your real estate or personal assets as security to offer you finance. Alternatively, we also offer secured Trade Finance options.
Quick turnaround. You’ll get an answer to your finance application within days, not months. That’s much faster than traditional options.
Flexibility. You can use our finance either as your main funding source or to supplement traditional financing. So, if you want to diversify or your bank isn’t servicing your needs sufficiently, you can use trade finance as top-up funding.
Easy international trading. Our Trade Finance facility makes it easy to pay suppliers in more than 72 countries in a choice of 15 global currencies.
Secure platform and trading. We verify all members in our system to give you confidence that your trading partners are legitimate. Our information systems use best-in-class firewalls, encryption, hardware and procedures to keep your data secure.

How does our Trade Finance facility work?

Our Trade Finance facility has a simple workflow.

Submit your application. Apply online, and if you’re successful, we’ll approve you and give your business a facility limit.
Invite a trading partner. Add your domestic and international suppliers to the Octet platform. You don’t have to add all your suppliers to the system — just the ones you want to use the facility to pay. We’ll then ask them to enter their details so we can verify them.
Place your order. Add your order to the Platform. Our system will notify your supplier so they can accept the order. You can upload any documents needed for the transaction — such as the purchase order, invoice and bill of lading — through the Platform.
Authorise payment. Once the transaction is complete, you authorise the order and choose which funding methods you want to use to pay. This might be our Trade Finance facility, a credit card or a bank facility — or you could split the payment across multiple methods.

It’s that simple and safe. Our closed-loop Platform ensures the upload of all necessary documents, such as the bill of lading, before the order can be approved. That means you can be assured the transaction is valid before you pay.

How Octet’s Trade Finance accelerates business cash flow

Our Trade Finance facility helps you smooth out the cash flow fluctuations in your business.

For example, let’s say you sell sunscreen. As a seasonal business, you’ll need to order a lot of stock as the warmer months approach. Having a Trade Finance facility in place helps reduce the cash flow pressure that will build at that time.

Of course, regardless of the climate, other businesses may be flourishing and need extra cash to take advantage of opportunities for growth. In these cases, Trade Finance funding can provide a cash flow injection to help deal with demand.

This was the case for online wine retailer Vinomofo. The business had organically funded its growth without any debt since it began in 2011. But in 2020, when consumers moved to buying online during the pandemic, Vinomofo saw its opportunity to grow. Cash flow was good, but it needed a finance partner to take advantage of the deals on offer. Octet’s flexible finance allowed it to seize new opportunities faster than its competitors, which led to impressive and sustainable business growth.

Go Vita has also harnessed Octet’s Trade Finance. The health and wellness retailer was opening new stores nationwide and taking on new suppliers but wanted to preserve cash flow. The Octet Trade Finance facility allows them to do just that, and as Go Vita continues to grow, so too does the facility.

Discover if Trade Finance is right for you

No matter whether you need help to ride out the storm or fund exciting growth opportunities, trade finance will help your business power through.

Find out more about our Trade Finance facility and if it’s right for your business, or talk to us to find the best solution for your business needs.

Disclaimer: These comments are only 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.

Financing trends: business game-changers in 2024 and beyond

Posted on September 30, 2024October 17, 2024 by Russell Walsh

The world of finance is evolving rapidly. Disruptive technologies, an increasingly connected financial landscape, and global uncertainty are challenging traditional finance models. The financing trends that have shaped previous years are evolving, while innovative new products are forcing businesses to rethink their approach to funding.

So, what are the trends in financial services that will shape the rest of 2024 and beyond? We explore six key trends that could change the way we all do business.

6 financial services trends in 2024 and beyond

1. Blockchain technology in financial services is on the rise

Blockchain technology, often associated with cryptocurrencies, extends beyond digital currencies to a range of industries and users.

In 2024, its application for supply chain management in small-to-medium-sized businesses is gaining traction. Blockchain-based invoice financing is transforming cash flow management by offering increased transparency, security, and efficiency, which can lead to a reduction in costs and a streamlining of processes.

“A prominent application of blockchain technology is decentralised finance,” says Octet’s Co-CEO, Brett Isenberg. “In traditional centralised finance, consumers and businesses borrow from a bank or via a broker. Decentralised finance challenges this by allowing peer-to-peer exchanges.”

While blockchain tech is currently used in the finance sector, Brett believes its use will increase exponentially in the years to come.

2. The industry is embracing AI and data analytics in financial services

Artificial intelligence (AI) and machine learning (ML), which provide insights and solutions at unprecedented speeds, are being used in tasks such as research and fraud detection. In 2024, there has been an even greater uptake of these tools with AI-driven supply chain management tools being used to help businesses predict disruptions, optimise logistics, and manage inventory more effectively.

“AI and data analytics have transformed the finance industry,” says Brett. “AI algorithms can analyse large data sets to identify anomalies that detect fraudulent activities and measure risks with greater accuracy than ever before.”

These technologies will also be increasingly used to enhance efficiencies, make decisions and improve customer service. “AI-powered chatbots and virtual assistants are getting better and better,” adds Brett. “The technology is also enabling more accurate and dynamic credit scoring by considering a much broader range of factors.”

3. Global growth has remained weak

In late 2023, the resilience of the global economy exceeded expectations, but global economic growth continues to face challenges in 2024. Political tensions, interest rate fluctuations, and economic policies are impacting financial services worldwide. China’s recovery has been weaker than forecast, global core inflation is rising, and high public debt continues in many countries. These factors had led the OECD to project lower global growth in 2024 compared with 2023.

In Australia, the Reserve Bank has kept interest rates on hold since November 2023, despite political pressure for cuts.

“This decision reflects ongoing concerns about inflation and economic stability”, states Brett. “Globally, many countries have cut rates to stimulate growth, but Australia’s unique economic conditions have led to a different approach.”

As such, businesses of all sizes must navigate these complexities to manage their cash flow and investment strategies effectively.

4. Increasing cybersecurity concerns

As financial transactions become more complex and frequent, cybersecurity remains a critical concern.

In 2024, Australia has seen a significant rise in data breaches, with notable incidents affecting millions of individuals. The Office of the Australian Information Commissioner (OAIC) reported a 9% increase in data breach notifications in the first half of 2024 compared to the previous six months.

Enhanced cybersecurity measures, such as multi-factor authentication and advanced threat detection, are essential to protect assets and maintain trust in financial services.

When combined with disruptive technologies such as AI and a shift to cloud-based systems, financial service providers will have to become more adaptable to protect their customers and offer the best services. Business leaders are being compelled to develop new strategies and explore innovation to counter challenges to security systems.

5. Innovative financial products are more readily available

While challenges are increasing, so too is innovation. The range of financial products available to businesses and consumers is growing, and as more businesses and consumers adopt digital solutions, new technologies and financial services have emerged.

“For example, a growing environmental awareness has increased the focus on sustainable financial products. So, there are now green bonds and sustainable investment funds,” says Brett. “Healthcare supply chain financing is an emerging area too.”

“Another innovation is the tokenisation of assets, which involves converting real-world assets into digital tokens on a blockchain. This has led to the creation of tokenised securities and other asset-backed tokens.”

6. Banks are being forced to embrace change

The banking industry is facing challenges from a slowing global economy, divergent economic conditions and disruption to their general business models. evolving financial landscape. Traditional banks must adapt amid higher interest rates, stricter regulations, climate change and technological advancements. Banks are now having to invest in robust platforms and adopt open banking requirements to collaborate with third-party providers. This shift is essential for improving customer service and engagement, helping banks retain important business customers.

“Traditional financial institutions have obviously been embracing tech for years, but it’s only in more recent times that it’s really pervaded certain products based upon business demand,” explains Brett. “At Octet, we have fundamentally changed the way buyers and sellers engage with each other on one platform — both in a local and international trading context. Traditional banks are also starting to invest in robust platforms and adopt open banking requirements to collaborate with third-party providers.”

Brett says banks are increasingly being forced to improve their customer service and engagement to retain important business customers.

The future of finance

Our innovative working capital solutions help you unlock the power in your business to thrive. Need a cash flow injection without the need for personal asset security? Our Debtor Finance facility allows you to convert up to 85% of your unpaid invoices into immediately available funding.

If it’s a revolving line of credit you’re after, our Trade Finance facility offers up to 60 days interest-free and 120-day repayment terms to pay local and international suppliers.

You can also unlock additional working capital to expand operations, acquire new assets or consolidate existing debt by activating an Octet Term Loan as part of your Debtor or Trade Finance facility.

Discover how Octet’s team of working capital specialists can help power your business growth today.

Disclaimer: These comments are only 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.

Unlocking opportunity: business finance options every broker needs to understand

Posted on September 1, 2024December 11, 2024 by Russell Walsh

Want to better support your SME clients? Managing cash flow is an SME’s number one priority — cash flow gaps can significantly affect operations and hamper growth. As a commercial finance broker, helping your SME clients identify, measure and bridge cash flow gaps will set you apart.

In this article, we’ll explore some key strategies and tips for managing cash flow. So let’s get started with some insights that brokers can use to proactively suggest tailored financial solutions that help to address cash flow challenges and drive business success for their clients.

Identifying cash flow gaps for your SME clients

Clearly, in order for you to offer solutions to your clients, you have to know what the key issues and opportunities are. Identifying cash flow or finance gaps and adding value to your existing service can really help strengthen your client relationships. And it starts by simply getting curious.

Dan Verdon, Octet’s NSW Director of Working Capital Solutions, says there are some simple questions you can ask your SME clients to identify any cash flow gaps:

Do you want to grow your business, or have you identified growth opportunities, but you can’t make it happen? “If the client is finding it difficult to grow to the next level, it might be because they don’t have the right finance in place,” says Dan. “Innovative working capital solutions can really help here.”
Are you finding you must turn away new business? “The client might tell you that they’re having to say no to orders or sales because they don’t have the working capital or the cash flow to actually service that customer or take care of those additional orders.”
Are your customers taking a long time to pay their invoices? “We often hear businesses complain that some of their customers take a long time to pay. They might be big businesses and good payers, but they take up to 70 days to pay. If you ask your SME clients what their average debt turn is and they say it’s beyond 30 days, that can cause cash flow issues.”

Business finance options

You’ve identified your client’s cash flow gaps and think a working capital solution might be the answer. So, is using debtor finance the best solution or is a trade finance facility the way to go? Could these solutions actually work together to help accelerate cash flow? Ask yourself, what is the best fit for my SME client and their unique supply chain and business requirements?

The good news for you is that there are solutions that can address these cash flow gaps. Today’s businesses have a range of finance products at their disposal, but beyond traditional forms of credit such as bank loans and credit cards, they might not fully realise their options.

Octet provides working capital solutions for SMEs across a range of industries. These solutions help improve cash flow and ensure the smooth operation of a business.

To explore growth opportunities

Debtor finance, also known as invoice financing, is a solution for businesses to access funds tied up in their receivables ledger without the need to use personal security or other collateral. It provides quick access to cash by leveraging unpaid invoices as an immediate cash advance.

A debtor finance facility can provide a robust solution where your client has a good business but encounters cash flow issues due to slow B2B payers.

With a debtor finance product, the financier will effectively lend against the business’ accounts receivable ledger and provide quick access to cash, bridging the gap between when invoices are raised and when they are paid. There’s generally no need for personal security or collateral.

When Skillforce Recruitment needed to overcome cash flow challenges to rapidly scale their operations, traditional financing options couldn’t provide the flexibility they required. The business came to Octet for a range of solutions, including a Debtor Finance facility that ensured predictable cash flow levels to meet payroll, manage operational costs, and seize growth opportunities.

“Octet’s got a proven history of facilitating growth for businesses,” says Dan. “Skillforce is a great example of that.”

To increase purchasing power

A trade finance facility could also be what the business is seeking. This revolving line of credit allows businesses to pay their suppliers quickly, mitigating some of the financial trade risks and allowing them to keep their supply chain moving smoothly. It also allows businesses to explore new trade opportunities.

“When you think of trade finance, many people immediately think of paying overseas suppliers. But it’s just as effective for paying domestic suppliers,” says Dan.

With trade finance, the financier pays suppliers immediately (which tends to keep them happy) and gives the business up to 120 days to repay.

Octet’s trade finance facility was the perfect solution for wellness retailer Go Vita. The business was increasing its number of suppliers and opening new stores but didn’t want its cash flow tied up in the process. The Octet facility allowed Go Vita to pay suppliers without delay while keeping its supply chain moving and the business growing.

Partner with Octet to power your SME clients

So, you’ve established that your client is interested in a working capital solution like a trade or debtor finance facility, but what’s next? Think Octet.

Unlocking a world of business possibilities since 2008, we have the experience to power a range of businesses across many industries. Our clients trust us to handle more than $4 billion in supply chain transactions every year.
We make it easy for commercial finance brokers, especially those who don’t work with these types of products every day. We structure the facility, help promote it to your clients, answer their questions whilst your brokerage reaps the rewards. Learn more about our Referral Partner Program, including the exclusive Qantas Business Rewards referral offer.
Our business clients choose Octet, and brokers refer their clients to us because we provide simple, fair and fast financing solutions. For example, with our streamlined Supply Chain Platform, businesses can track and manage every stage of their supply chain process, improving transparency and security for all parties.
We know your relationships are important, and we will keep you updated so you can continue to leverage the positive relationships you’ve built with your clients. Partnering with an established financier like Octet helps to cement your reputation and credibility.
The process is straightforward. Simply refer your client, and we handle the rest. After the initial meeting, you provide the business’ financials for our review. We’ll then walk your client through the recommended product and provide an indicative offer where appropriate. Once the offer is accepted, we settle the deal and get started. Your clients can then track, validate and authorise every stage of their transaction via our intuitive supply chain platform, enjoying all the benefits of having accelerated business cash flow.

Discover how to partner with Octet today

Octet partners with commercial finance brokers nationwide to help them empower their business clients. Do you have clients who could benefit from smarter working capital solutions? Get in touch with us today to discover how we can power your SME clients’ growth.

Disclaimer: These comments are only 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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