Octet Finance has launched Australia’s first Business to Business credit card which will provide both unsecured and accelerated working capital finance for SME’s in both their purchasing and sales cycles.

This follows the successful launch in February 2008 of Octet’s pioneering Business to Business credit card facility for imports into Australia from China and Hong Kong. The major benefit of the Octet Trading Card is that it enables Australian businesses to fund growth without putting up personal or business assets as collateral.

Similar to a consumer credit card but with a much higher facility limit, The Octet Trading Card will allow businesses to reduce the critical timing gap between their cash outflow from purchases and cash inflow from sales.

“The Octet Trading Card dynamically assists businesses to accelerate their cash flow”, says Clive Isenberg, Octet’s Managing Director. “This is a fresh approach to providing finance for Australian businesses. It is unique in that it allows SME’s to both rapidly collect money that is owed to them by their customers / buyers and provides them more time to pay their suppliers / sellers. The Trading Card will allow small businesses in this country to reduce their working capital cycle, which is often the fault line for many growing businesses, especially in their establishment phase.”

Key Benefits for users of The Octet Trading Card

Where a supplier / seller offers credit terms to its customers / buyers – The Octet facility:

·            Requires no security and is collateral free.

·            Removes credit risk: Guaranteed payment through Octet.

·            Builds customer loyalty by providing Octet Visa Rewards to its buyers.

·            Accelerates cash receipts from credit sales.

·            Turbochargers the working capital cycle for both seller and buyer.

·            Provides an option for the seller to offer its buyers 60 days interest free credit.

·         Provides an option for the seller to offer its buyers extended credit for up to a further 60 days at overdraft rates.

·            Removes the need to utilise existing secured Bank funds to finance the credit terms for customers / buyers.

 As a Buyer the benefits of the Octet facility include:

·            Interest free credit terms for 60 days.

·            Option for further credit at overdraft rates for up to a further 60 days.

·            Ability to diversify borrowing reliance on one financial institution.

·            Delaying accounts payable cash outflow.

·            Earning cash rewards via the Octet Visa Rewards Card.

·            Achieving the successful principle of cash flow optimisation, which is to pay sellers slowly and collect from buyers quickly.

Clive Isenberg says, “The past twelve months have been difficult for SME’s in Australia. The global economic climate has made credit scarce. This has adversely affected opportunities for SME growth. What we are offering with the Octet Trading Card for Business is a unique financing solution for SME’s that are trying to grow in this environment. They can manage their finances more effectively by collecting funds owed quickly and by building better relationships with their suppliers through consistent payments. The Octet Trading Card removes the pressure from managing working capital."

Octet Finance

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