Types of Business Transaction Facility
The flexibility to match your current trading agreements
Importer/exporter agreements don't all conform to a single standard, so we've made Business Transaction Facilities flexible, enabling you to use yours in the way that best suits your trading relationship. Here are the three ways your Business Transaction Facility can work.
1 Octet Direct Payment
This is the 'full service' Business Transaction Facility. You use the Octet portal to arrange the transaction and Octet's unsecured finance facilities to pay your supplier on agreed completion.
2 Octet Arranged LC
This is where your supplier insists on receiving a Letter of Credit. We can provide the LC, but we do not require any security. The transaction is managed through the Octet portal, with a separate payment arrangement. Octet arranges for an LC to be issued to your supplier by a Chinese Bank. The bank pays the supplier and Octet reimburses the bank.
3 Buyer Direct Payment
If your supplier is already extending you credit terms, you can use the Octet portal to initiate and manage your purchase. Your business, rather than Octet, then pays the supplier, although you may wish to take advantage of your Business Transaction Facility's interest-free credit anyway.