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For a smaller freight-forwarding company to compete with international behemoths, Global Trade Logistics founder Gary Coutsoudis knows he and his team must outperform.
That includes crucial factors, such as delivering exceptional customer service and playing it smart with financing. On the service front, he is proud of the culture the company has created – built around personalisation, flexibility and relationships – as it handles air and sea freight, customs clearances, warehousing and distribution services.
“From the smallest client to the big multinationals, they all want service. We’re very good at that and it’s something I’ve instilled in the staff from the very beginning,” says Gary, who leads the team of 15 at Global Trade Logistics (GTL), which has offices in Sydney and Brisbane servicing every port and location throughout Australia, as well as agents in Asia, Oceania, Europe and the United States.
The service-led approach has paid off. Operating for more than two decades as a family business, GTL has an enviable reputation across Australia, Asia, Europe and the US for transporting goods from food and wine to furniture, stone, tiles and marble products, oversized machinery, plus vehicles and automotive products.
One memorable instance demonstrates the benefit of great service for Gary. Many years ago, another freight forwarder opted out of an air-freight shipment for its client, a Hungarian-based water-treatment company. So, GTL stepped up, did the job and impressed the client, securing its business.
“Unbeknown to me, they were just about to be bought out by a big multinational” Gary recalls. “That relationship has since grown from one small shipment into a multi-million-dollar client.”
GTL’s pledge is to ensure businesses safely and cost-effectively navigate an increasingly dynamic trade environment. Being smaller and more agile helps. For example, having multiple independent agents in China is advantageous when setting freight rates. “We can pick and choose rates from different agents, whereas the big guys have to stick to rates set by their head office.”
Money matters
Financing has been another vital area of focus for Gary since he set up the business in 1999, following a split from a previous long-term business partner.
After that upheaval, money was initially tight. Relying on a simple cheque account and not having property as collateral for bank financing, GTL was operating on a “shoestring” budget that restricted growth. “For the first three or four years, I just had to rebuild,” Gary recalls.
Key to the turnaround is the banking relationship he initiated with Westpac that’s become a 20+year partnership. “They’ve helped us all along the way with home loans and business facilities. They’ve been very, very supportive,” Gary says.
GTL’s biggest challenge in the early days was cash flow. Fortuitously, in 2008, Gary’s accountant recommended invoice finance – aka debtor finance – and it’s been a game-changer.
“I would highly recommend this facility to others,” Gary says. “If they’ve got a good client base, but their cash flow is tight, you just can’t beat it.”
How does it work? In essence, invoice finance is a flexible line of credit linked to and secured by outstanding accounts receivable. The Westpac facility allows businesses to use unpaid invoices to unlock up to 85% of their value, boosting cash flow for operating expenses and growth opportunities – and it’s a tool that can grow with a business. The more invoices issued, the more funds that can be accessed.
Westpac also offers a 24/7 self-serve portal, enabling the business to upload invoices in seconds and draw down funds in minutes, which helps reduce paperwork and administration.
No cash flow hurdles
Today, GTL has a very large invoice finance facility with Westpac. This means GTL can confidently service its global partners and support global trade as goods are moved quickly and seamlessly. Gary says it has been crucial to GTL’s growth.
There’s no waiting for invoices to be paid. Gary explains that with a multinational client, one invoice alone could be worth hundreds of thousands of dollars.
“If you are operating just on an overdraft, you’ve got to wait 30-90 days to get that money.” However, with invoice finance, GTL gets 85% of the invoice up front, freeing up cash to service the client and funds to run the business.
“Just like an overdraft though, its crucial you stay on top of your collections,” he says.
It’s created cash flow for GTL to expand beyond traditional markets such as Australia and the US into fast-growing locations across Spain, Turkey and China, with the Asian powerhouse being a strong growth region.
Future positive
With GTL performing well in multiple markets, Gary is confident of ongoing success.
The business’s experience and service ethic will hold it in good stead, he believes, and it’s in sound hands with son Christopher following in his footsteps, supported by GM Daniel Jovanovic, CFO Toufic Khoury and a fabulous team.
Invoice finance has also been key to the business’s expansion to date and Gary anticipates his long-term relationship with Westpac will ease any financing needs as the business seeks further growth, with hopes to open a Melbourne office soon.
The bank has also helped with mortgages to purchase several commercial properties. “They’ve been brilliant,” he concludes.
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