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How Octet Empowered a Home Care Services Company with Working Capital Finance: A Journey to Financial Stability and Growth
In the realm where care is paramount, financial stability becomes the delicate backbone supporting businesses ming to make a difference in people's lives. For an Australian home care services company looking to revolutionize in-home care across the country, the balance of growth and cash flow became increasingly challenging as they expanded their operations.
The company was established with a mission-driven approach in 2016 to transform the homecare industry by offering personalized services including personal care, companionship, assistive technologies, pet care, transportation, among others. Its innovative technological component empowers members to manage health monitoring, schedule care activities and track expenses efficiently. Despite this modern touchpoint, the business faced substantial financial hurdles as it expanded across major Australian cities.
A 50 revenue increase from 2022 to 2023 was not enough to cover its losses for four consecutive years due to cash flow pressures typical in the aged care sector. The company operated on a model with indepent carers setting their rates within suggested guidelines, which led to challenges balancing affordability for clients while compensating carers frly.
With over 35,000 in-home activities per month, ranging from physiotherapy and nursing duties to tasks like lawn mowing and grocery shopping, managing weekly operational expenses became a significant challenge. The monthly payments from the Home Care Package Program by the Federal Government created a monthly cash flow gap that threatened regular operations.
Navigating through Financial Hurdles with Working Capital Financing
Facing these challenges, traditional ling solutions might not address specific needs adequately. This is where Octet Finance's Queensland Director of Working Capital Solutions came into play, Allan Howe. Understanding the unique complexities and growth potential of the home care services company led to a $5 million debtor finance facility.
Debtor finance transformed future receivables into immediate cash flow for the business. This solution enabled liquidity to manage weekly operational costs while awting monthly government payments. The financial stability provided by Octet's facility allowed the company to continue paying carers promptly, ensuring care quality was not compromised due to cash flow concerns.
The partnership with Octet led to a turning point in sustning growth across multiple regions for the home care services business.
Octet’s solution eased our cash flow pressures while supporting our growth initiatives, sd Allan. It allowed us to confidently enter new markets and invest in technology, marketing efforts, and administrative overheads.
Ensuring Care Providers and Clients: Balancing Financial Stability with Growth
The timely payments made possible by the working capital finance empowered the business not only financially but also enabled it to attract top-tier carers who were pd promptly. This reliability became a competitive advantage, enhancing the quality of services provided.
Collaboration between Octet, bankers, and the home care company illustrates how customized working capital solutions can empower businesses facing financial challenges while sustning growth in mission-driven sectors like healthcare.
Boost Your Business with Octet: A Path to Growth
At Octet, we are dedicated to empowering businesses across various industries through innovative Debtor Finance, Trade Finance, Term Loans, Supply Chn Accelerate and OctetPay. Our team of working capital specialists can help you identify the best solutions for your business needs today.
: The views expressed in are solely those of the author based on information deemed reliable but not guaranteed and may be subject to change without notice.
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