Exclusive to Octet, a Purchase Business Transaction Facility makes it fast and easy for your business to pay for imported goods by doing away with the need for Letters of Credit, Telegraphic Transfers and any other traditional methods of payment. A Business Transaction Facility gives you substantial international buying power. And the significant advantage of not needing to secure the debt means assets are not tied up unnecessarily. As an Octet member, your Business Transaction Facility is pre-approved to a fixed purchasing limit.
You're free to trade as frequently as necessary up to that limit, similar to how a consumer credit card account works. There's nothing else on the market like an Octet Business Transaction Facility.
When you source product internationally, supplier agreements, terms of trade and payment arrangements rarely conform to any one single standard. Therefore we’ve incorporated flexibility into the Purchase Business Transaction Facility enabling you to use it in the way that best suits your trading relationship.
There are three ways that payments can be made under the Business Transaction Facility.
Octet Direct Payment
This is the 'full service' Business Transaction Facility for Purchases. You use the Octet portal to arrange the transaction and to utilise Octet's unsecured finance facilities to pay your supplier on agreed completion of the order.
Octet Arranged LC
This is where your overseas supplier insists on a Letter of Credit for payment. Octet can provide the LC without requiring 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 foreign Bank. The bank pays the supplier and Octet reimburses the bank.
Buyer Direct Payment
Even if your overseas supplier is already extending you credit terms you can use the Octet portal to initiate and manage your purchase. Your own business and not Octet, then pays the supplier, (although you may wish to take advantage of your Business Transaction Facility's interest-free credit anyway).
Remember, you can also use this method if you are at your maximum credit limit with Octet but still wish to use the portal to transact.