Wide Format Online
17 September 2008
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 www.octetfinance.com