Sydney, AUS (8 April 2024) – Corpay*, a global leader in business payments, and Octet, a tech-enabled business lender that focuses on financing the full supply chain, are pleased to announce a new collaboration between Corpay’s Cross-Border business and Octet.
Through this collaboration, Octet and their business customers will have the opportunity to gain access to and utilise Corpay’s innovative hedging tools that can help clients mitigate their exposure to foreign exchange risk.^ Additionally, Corpay Cross-Border’s award-winning platform will enable them to manage their global payments from a single point of access.
Recognising the challenge of maintaining consistent cash flow for businesses, Octet provides both a strong alternative and complimentary funding solution to traditional banks. Corpay Cross-Border customers will have access to Octet’s innovative trade finance, debtor finance and digital wallet solutions.
“We are thrilled to welcome Octet into our partnership network and to offer trade finance and other working capital solutions to Corpay clients. We believe our partnership will bring immense value to Octet customers who seek enhanced efficiency in payment processes and expert management of FX exposure throughout the entire supply chain,” says David Britten, Managing Director APAC at Corpay Cross-Border. “Our comprehensive cross-border payments and currency risk management solutions will empower businesses in Australia to seamlessly navigate cross-border payments, strategically address currency risk, and help drive their global business expansion aspirations.”
Octet’s Co-CEO, Brett Isenberg added: “Corpay are a very significant player in the Australian and global business payments landscape, who we’re extremely proud to partner with. This collaboration is exciting for Octet in that it gives us the opportunity to work with Corpay and their expansive Australian client base in finding innovative working capital solutions to meet their evolving cash flow challenges. When you consider the current turbulent economic conditions and subsequent restricted funding appetite from the big banks, the opportunity is amplified. Equally, we’re excited to have a strategic partner who possesses significant experience in offering bespoke risk management FX solutions.”
About Corpay
Corpay (NYSE: CPAY) is a global S&P500 corporate payments company that helps businesses and consumers pay expenses in a simple, controlled manner. Corpay’s suite of modern payment solutions help its customers better manage vehicle-related expenses (such as fueling and parking), travel expenses (e.g. hotel bookings) and payables (e.g. paying vendors). This results in our customers saving time and ultimately spending less.
Global businesses and institutions trust our Corpay Cross-Border solutions to power their international payments, execute plans to manage their currency risk and support their growth around the world. We aim to deliver unmatched service and expertise with respect to moving money globally.
Corpay – Payments made easy. To learn more visit www.corpay.com.
About Octet
Specialising in providing innovative supply chain finance and payments solutions to Australian businesses and their local and global trading partners, Octet’s vision is to connect and grow the world’s businesses.
Established in 2008, Octet has powered the growth of over 200,000 businesses via intelligent Trade Finance, Debtor Finance and other working capital solutions. To learn more visit www.octet.com
Is a lack of working capital making your business stagnate?
Maybe you understand that you need extra funding to grow, but you’ve exhausted all of the traditional funding options. Perhaps you’re confident that your business will continue to flourish based on past performance, but you’re not sure how to best fund new opportunities. And you’ve borrowed all you can from your bank, based on your personal assets. So where do you turn?
That’s where trade finance can help. It acts as a revolving business line of credit that gives you the working capital you need to fund your business growth. But what are the pros and cons? And how do you know whether this type of funding is right for your business?
Let’s dive into the advantages and disadvantages of trade finance.
First, what is trade finance?
Trade finance is a well-established business funding solution, used in 80-90% of trade worldwide. Think of it as a business ‘line of credit’ funding facility.
This kind of financing gives your business quick access to funds by introducing a financial partner into your supply chain. The high-level process is really simple:
Your business purchases goods from your supplier, either in Australia or overseas.
Your financier lends you the money to pay that supplier immediately.
You then repay your financier with extended credit terms.
Trade finance funding helps to bridge the gap between paying for your goods and recouping your money when you sell them to customers. In short, it gives you the working capital to keep your business running while you wait for your goods to arrive and commence the sales distribution process.
What are the benefits of trade finance?
Businesses use trade finance to fund their business growth for many reasons – let’s examine the top four.
1. Control your working capital
Are there advantages to a business line of credit vs a traditional loan? Definitely!
Traditional financial institutions usually demand asset security before they’ll lend you money. So if you’re short on personal/directot’s assets, have maxed out your borrowing limit or don’t want to use your personal assets as collateral to begin with, your business can stagnate.
On the other hand, trade financiers often lend based on the strength of your business’ balance sheet and the risk of the supply chain transaction/s, not on your personal assets. They examine your overall business and transaction values to determine your credit limit. That makes it easier to grow and scale your business as your sales increase. As your transaction values and profitability grow, so too can your funding limit.
This benefit is especially important given recent, COVID-induced global supply chain disruptions, wherein we have seen an increase in the average time debtors take to pay, and international suppliers requiring upfront deposits. These pressures widen your funding gap.
You can close this gap and provide your business with a cash flow advantage by extending your payables by up to 120 days with Octet’s Trade Finance facility.
With our intelligent Trade Finance solution, we pay 100% of supplier invoice values, including any upfront deposit requirement. Together with interest free terms of up to 60 days, you’ve got a flexible and powerful financing tool for your business.
2. Flexibility with global transactions
International trade is complex at the best of times, so anything that makes the process smoother has to be good for your business. Using a trade finance platform makes it easy to pay suppliers in other countries and currencies.
For example, our supply chain platform platform gives you single-click payment across 68 countries in your choice of up to 15 currencies, which greatly reduces costly bank FX conversion fees and margins. Or you can bring your own third party forward exchange contract to the transaction via the platform too. In just one click, you can authorise the payment, knowing that the FX is handled quickly and easily in a single, hassle-free step.
3. Early repayment discounts
Using a trade finance facility makes your cash available shortly after you receive your supplier’s invoice. This enables you to take advantage of any early settlement discounts they may offer (or you’re able to negotiate), which can ultimately save you money.
With Octet’s Trade Finance solution, you can pay both international and domestic suppliers. And, for those domestic suppliers, this can be related to invoices for goods or services. This flexibility allows you to use the funding and seek early payment discounts for a wider scope of supplier types and transactions than other funding options may allow.
4. Reduce global trading risk
Trading internationally always comes with an element of risk. If you’re an importer, there’s the risk that your goods won’t arrive. As an exporter, you risk not being paid in a timely fashion once you’ve sent the shipment.
An intelligent solution like our Trade Finance facility makes it easier and safer to trade, regardless of which side of the transaction you’re on. That’s because both the buyer and supplier are registered and linked to one another on the Octet Supply Chain Platform.
The platform’s embedded claim and authorisation process also enables seamless communication between both parties. This ensures transparency and nullifies any payment dispute risk.
What about the disadvantages?
As with any financial decision, it’s essential to do your homework before signing up to a trade finance facility. Always investigate whether a given company and product is suitable for your business.
The top four factors to consider when you’re researching trade finance facilities are:
1. Eligibility
Not all businesses (pending their size, industry and specific requirements) are eligible for trade finance funding. Do your research to find a solution that will work with your business.
As an example, our Trade Finance soluition is open to Australian businesses that have:
at least $3 million turnover
been profitable for at least 2 of the last 3 financial reporting periods
a positive balance sheet net worth
up to date ATO payments
current management and financial accounts
2. Costs
As with any financing solution, there’s a cost to using trade finance. That means you need to understand your profit margins and expenses so you can build the cost into your supply chain.
That way, the facility fees just becomes a normal cost of doing business, instead of being an added burden to your bottom line.
3. Product suitability
Most financiers offer a range of products, but not all products will be suitable for your business. Do your research and seek advice on which product is best for you in your current circumstances.
In fact, by combining Debtor Finance and Trade Finance facilities on our Supply Chain Platform, we can give your business an integrated funding package. Incorporating both facilities gives you a ‘back to back’ financing solution featuring:
A business line of credit to pay suppliers, with extended repayment terms to Octet (Trade Finance)
A drawable funding source leveraged against your receivables (Debtor Finance).
This ‘back to back’ financing solution can simplify those periods of rapid growth, especially when you win new projects or contracts with initial expenditure requirements. With this solution, you can leverage the increased sales revenue and mobilise that cash flow to close the funding gap.
4. Clear obligations
All financial products can appear complicated when you start out, but they should have clear terms that they require both parties to follow.
Make sure you understand any obligations that come with the funding facility. If you’re unsure of anything, get your financier to explain exactly what you need to do to fulfil your obligations for their product.
Discover whether Trade Finance is right for you
As with any business financing solution, there are pros and cons to using trade finance funding for your business. To check whether our Trade Finance facility is right for you, ask us to assess your business and help you make an informed decision.
The past few years have presented the Australian food and beverage industry with exceptional and unforeseeable challenges.
While demand for essential food and beverages will always exist, many businesses in the industry are experiencing significant challenges, primarily due to:
changing customer needs
supply chain disruptions
currency fluctuations
climate change
cost-of-living pressures
skills shortages
Now, more than ever, managing finances in the food industry is crucial to staying profitable and building a resilient business. Let’s take an in-depth look at the challenges facing the food and beverage industry and how businesses in the sector can best manage their risk.
The importance of Australia’s food and beverage industry
The food and beverage sector is Australia’s largest manufacturing industry, accounting for 32% of the country’s total manufacturing turnover. According to the Australian Food and Grocery Council’s 2021 State of the Industry report, the food and beverage, grocery and fresh produce sector is worth $132 billion and employs more than 270,800 people.
And perhaps most importantly, it’s the heart of regional Australia, with 40% of these employees living in regional and rural communities.
Together, these businesses supply a diverse range of products, including:
meat
grains
dairy
fruits
vegetables
seafood
confectionery
beverages (including wine)
And they cover all distribution channels, from retail to food service and food ingredients.
Food and beverage industry challenges
Strong financial performance in the food and beverage industry is vital to the Australian economy, now more than ever.
Some businesses are booming in the current climate, while others’ creativity and ability to adapt amid constant change has kept them going. Regardless of the status of each individual business or their finances, the food and beverage industry as a whole will face five unique challenges in 2023.
Challenge 1: Unpredictable customer patterns
Rising interest rates and cost-of-living pressures will continue to create unpredictable customer spending patterns in 2023. McKinsey found that price sensitivity has continued to grow during 2022, particularly among consumers from lower income brackets. This cohort is looking to save money on food and beverages where they can — even more so than during the pandemic.
This is driven by cost-of-living pressures due to rising inflation, which has reduced incomes and available cash for the weekly grocery shop. Switching to cheaper brands, favouring value retailers (such as Aldi) and seeking out better deals and promotions are ways that consumers might be looking to save money.
Challenge 2: Disrupted supply chains
Disrupted supply chains are currently one of the biggest challenges in the food and beverage industry. Business is also facing pressure to adopt circular supply-chain models. Internationally sourced ingredients and packaging supplies are taking longer than average to arrive, with the ongoing economic unrest causing global supply chain disruptions.
Transport costs have also skyrocketed, and this is putting increased financial pressure on the food industry — both for international and domestically sourced items. For example, Klaus Pamminger, chief operating officer at GrainCorp, said in a recent interview that transport costs have almost tripled in the last two years.
Finding quick cash flow solutions can be a challenge right now for many in the food and beverage industry. Some are considering different supply chain innovations, such as introducing more flexibility into their processes. An example of greater flexibility would be experimenting with different recipes in case key ingredients become unavailable.
Australian food and beverage manufacturers are also pivoting by diversifying their pool of suppliers, incorporating new technologies into their supply chain systems and training their supply chain workers to become more adaptable.
Challenge 3: Currency fluctuations
Even under normal circumstances, currency fluctuations can cause cash flow issues for businesses that either export or source materials internationally.
Currency fluctuations mean many businesses are currently paying more than they usually would for imported goods and services, while also earning less from any exports. Uncertainty has created downward pressure on the Australian Dollar, which dropped 11% against the USD in September 2022. This was its lowest level in two and a half years.
Without the cash flow to cover these often meaningful currency fluctuations, food and beverage businesses increase the risk of negatively impacting their bottom line during this extraordinary time.
Challenge 4: Climate change
Unpredictable weather patterns, such as long periods of drought, major floods and storms, can negatively impact supply chains and production processes. And with climate concerns intensifying into 2023, businesses in the food and beverage industry are challenged to find solutions to combat the associated risks.
Amid growing concerns about climate change and sustainability, consumers are paying closer attention to the personal impact their choices have on the environment. For example, Deloitte’s 2022 Sustainability Report found that 64% of consumers surveyed have reduced their consumption of single-use plastics. But in the coming years, consumers will have no choice. Australia’s states and territories, apart from Tasmania, have either banned or committed to banning single-use plastics — including cutlery, straws, plates, bowls and drink stirrers — by 2025.
In 2023, this increased scrutiny may shift consumer buying behaviour, not only around the products and brands they choose, but also in areas like packaging, sustainable waste reduction and ethically sourced products.
Challenge 5: Skills shortages
The food and beverage industry faces two key challenges in 2023 when it comes to resourcing: shortage of available talent and attrition of existing employees.
Retaining talent is also a big challenge in the food and beverage industry, particularly in hospitality, as people are seeking better conditions. Many employers are considering incentives to attract and retain talent, such as sign-on bonuses, paid time-off and more flexible hours.
How can food and beverage businesses enjoy a cash flow boost in 2023?
Strong cash flow can help F&B businesses weather many of the current challenges. But how do you boost cash flow in such an unpredictable environment?
Our Trade Finance facility gives you access to a flexible line of credit to pay your suppliers earlier, whilst strengthening key business relationships. As it did for online wine retailer Vinomofo, which used the facility to take advantage of local growth opportunities during the pandemic.
Another way to boost cash flow is to leverage the funds tied up in your supply chain via our Debtor Finance solution.
It funds up to 85% of the value of your unpaid invoices within 24 hours. Your cash flow is boosted based on your invoiced sales so that you have the funds available to take action against the impacts of these industry challenges.
Improved cash flow can help you:
Leverage opportunities to grow or pivot. Meeting new market demands or changing your distribution network requires flexibility. Having cash flow available in line with your invoiced sales lets you jump on those opportunities without going into unchartered financial territory. With Debtor Finance, the more you sell, the more finance you’ll generally have available.
Reinforce your supply chain. Freeing up the money in your accounts receivables might allow you to buy extra stock or take advantage of bulk purchases to attain discounts and prevent supply chain disruptions.
Ride out exchange rate fluctuations. Access to increased working capital gives your business flexibility to better respond to currency fluctuations. And using our secure cross-border payments platform gives you upfront Australian Dollar visibility for international supplier payments, so you don’t get any nasty surprises.
Disclaimer: The following comments are only our views and should not be construed as advice. You should act using your own information and judgement. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgement as at the date of publication and are subject to change without notice.
As a business owner or director, there will be times when you need to access finance for your business.
You might need finance to grow, to buy stock or to see you through difficult times. But which method of business finance is right for your organisation? In this article, we explore some of the general challenges facing businesses, the traditional methods of business finance and some alternative financing solutions.
Why you need business finance
According to the Australian Government’s business.gov.au website, fluctuations in cash flow can have a serious effect on a business’s viability. As a result, one of the most common reasons a business seeks financial assistance is due to cash flow. But there are many other reasons why a business owner might seek funding. You might need business financing:
to help establish a new business
to purchase or lease property such as a factory or store
for investment in vehicles, machinery or other tools and equipment
for research and development
during times of difficulty to help the business survive
New challenges in business finance
The global pandemic and its aftermath wreaked havoc on the world’s businesses, but when we finally emerged from COVID, business leaders and owners faced new challenges.
The smallest SMEs to the largest multinational companies felt the impact of global supply chain issues, increased costs, skilled worker shortages and ongoing global uncertainty. Record levels of inflation and rising interest rates put pressure on households, consumers and business owners alike.
According to a recent KMPG report, business leaders have also been left with concerns about staff acquisition and retention, cybersecurity and digital transformation, the disruption of remote workplaces as well as new technologies. If businesses are to survive in the future, they simply have to innovate.
There is no doubt that the way we do business has changed, and that includes finding new ways to access business finance. The good news is there are a variety of methods available to finance your business. Options range from the traditional, like loans and overdrafts, to the more flexible, like Debtor Finance and Trade Finance.
You’re probably familiar with the traditional funding options, but the more innovative types may actually suit your business better.
Let’s examine the various finance options available.
Traditional methods of financing a business
The Reserve Bank of Australia reports that since the second half of 2021, small and medium businesses have experienced relatively strong growth conditions. As a result, demand is high for business finance. But though demand is strong, businesses face many hurdles, including rising interest rates. This makes accessing traditional bank funding difficult.
So, how do you finance a business? Many business owners still default to familiar, conventional options when they need financing, and there are three basic ways to go about it. It can be achieved by:
using internal funds
organising debt finance
arranging equity finance
Each of these options has benefits and drawbacks. Let’s take a look at each.
Business Financing Method #1 — Internal Funds
As a business owner, you might prefer to fund your expenses and growth through internal funds, such as the cash and savings you already have sitting in your business. These internal funds might come from profits you’ve already enjoyed or by selling assets the business no longer needs. The main advantage of using internal business funds is that you don’t have to take on debt or repay any money to a third party.
However, internal funding or internal financing uses up your company’s available cash or assets, which may cause cash-flow problems later on when it’s time to pay expenses. It may also stifle your business’s growth by keeping you from taking advantage of opportunities that require readily available funds.
Business Financing Method #2 — Debt Finance
Financing your business through debt involves borrowing money from a lender, such as a bank or other financial institution. It most often takes the form of credit cards, overdrafts, lines of credit or loans.
On the plus side, this generally allows you to keep control of your business and profits, because no other parties have any ongoing shared ownership over your business. Plus, the interest paid is often tax-deductible.
The main disadvantage, of course, is that you need to repay the money you borrow — usually with interest. And in the days of rising interest rates, that’s of real concern. The RBA has recently indicated that not only will rates not fall in the near future, they will probably continue to rise.
So, while debt finance can be a good short/mid-term fix, it can also lead to more problems in the future. Many businesses also find it challenging to get debt finance without offering personal asset security, particularly if they’re just starting out or don’t have sufficient equity. But for an established business that is looking for funding to grow, debt finance is often a solid option.
Business Financing Method #3 — Equity Finance
The third popular business capital solution is equity finance, where an investor provides funding in exchange for owning a piece of your business. Typical examples of investors include venture capitalists (professionals who invest in existing companies) and angel investors (individuals who invest in start-ups).
This can be less risky than debt financing, as the investment isn’t a debt you need to repay.
The downside is that you lose control and ownership of part of your business. It can also be hard to find the right investors — people who are both willing to invest and who you want to share future ownership with.
Alternative, flexible business capital solutions from Octet
The pressures and challenges on businesses are changing, but so too are business owners and leaders. According to the report Where Opportunity Lies: Australia’s new small business boom, created by Xero in partnership with Accenture, a new generation of business owners is emerging.
The report shows that of the latest wave of entrepreneurs, 45% are aged under 35. Of those who started a small business recently, 37% were born overseas. Meanwhile, 36% of small business owners are women. The report also reveals that over the next decade, 3.5 million new small businesses are expected to be registered.
Without a solid credit history, this new wave of business owners might find traditional funding difficult to access and will be looking at non-traditional means to launch and grow their businesses.
Alternative, flexible business capital solutions are almost certainly the way of the future.
At Octet, we believe that businesses should ideally be able to fund themselves. Business owners and managers who can think laterally about funding are the ones in the best position to grow.
That’s why ‘funding your own business’ is at the heart of all our financing options. We offer three alternative business working capital solutions:
The right one for you depends on the size of your business and your unique needs.
Business Financing Method #4 — Debtor Finance
Debtor Finance uses the biggest ongoing asset most businesses will have: their accounts receivables. Briefly, this solution lets you convert up to 85% of your unpaid invoices into immediately available funding within 24 hours. This means you can have the funds straight away, without waiting the 30, 60 or 90 days it might normally take your customers to pay you. Just imagine how much that would improve your cash flow cycle!
Better yet, we offer this without requesting you use your property as security, which many banks require. Using the Director’s personal assets as security isn’t an issue when the property market is going well (assuming you own property). But if you’ve maxed out your property equity — or you don’t own any — you do need another option.
Our Debtor Finance solution is available to Australian businesses across a wide range of industries, from newer companies to well-established ones. Ideally, you’ll have an annual turnover of at least $1 million, and at least two years of business operation.
Business Financing Method #5 — Trade Finance
Trade Finance gives you a revolving line of credit to pay your suppliers both locally and in more than 72 countries. Again, we don’t need you to provide personal asset security. Instead, you’re generally securing funding against the strength of your balance sheet, with just a company and director guarantee.
With up to 60 days interest free and 120-day repayment terms, our Trade Finance facility is flexible too. You can use it either as your primary funding source or to supplement your current bank or other financing arrangements. So if your bank can’t offer all the funding your business needs, or you want to diversify streams, we’re happy to help.
To be eligible, your business ideally needs an annual turnover of at least $3 million to $5 million and to have shown a profit for the last two financial reporting periods.
Business Financing Method #6 — Supply Chain Accelerate
Our Supply Chain Acceleratefacilityis like a hybrid of Trade Finance and Debtor Finance. It links suppliers and buyers in one process to free up working capital, which you could use to invest in supply chain innovation or other business growth strategies. The supplier gets paid 100% of their invoice upfront while the buyer has 30, 60 or 90 days to repay us.
Supply Chain Accelerate is completely unsecured, with no director or company guarantees required. And because it’s an off-balance-sheet source of funding, it doesn’t interfere with you taking out other business loans.
If you’re a supplier, this facility is hugely beneficial when you deal with larger companies that have an extended payment cycle. It means you generally access the credit rating of the bigger company to get paid earlier. Meanwhile, as a buyer, you can take advantage of potential early payment discounts to pay upfront and free up cash flow.
Supply Chain Accelerate is available to larger, profitable businesses with a substantial annual turnover.
Power your business with Octet’s supply chain finance options
Every business, from the smallest enterprise to the largest company, will need access to financing at some stage in their lifecycle. Having reliable, accessible business finance is a must, particularly during times of uncertainty.
The best funding method for your business will depend on a range of factors. At Octet, we help you find the business financing solution that’s right for you. We not only power your business growth, but we also empower you as a business owner or executive with better control over your supply chain.
Our team of supply chain finance specialists have helped Australian business owners and their local and global trading partners access the funding required to succeed. And we’re ready to help you better understand your business finance options.
Ready to take the next step with your business? Let’s take it together… Talk to us today about how to finance your business.
Disclaimer: The following comments are only our views and should not be construed as advice. You should act using your own information and judgement. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgement as at the date of publication and are subject to change without notice.
Leading supply chain finance and technology provider, Octet has today announced an exciting new senior leadership structure, with Brett Isenberg and Michael Rom transitioning into the role of Co-CEO. The move which was effective July 1, recognises the key contributions of both Brett and Michael to the positive trajectory of the Octet supply chain transactional business, particularly over the last 4 years.
Founder of Octet, Clive Isenberg (also the founder of Scot-Pac Business Finance), will continue to be involved at an executive level in the business.
Commenting on the move, Co-CEO, Brett Isenberg said: “both Michael and I are immensely proud and excited to be recognised as leaders of the Octet business, as we move into the future, continuing the businesses unrelenting efforts in achieving our vision of connecting and growing the world’s businesses. Whilst we are well on our way to becoming a major destination for Australian businesses to manage and finance their payables and receivables, there is still much room for improvement within our range of working capital solutions, ensuring that we’re fully listening to business market appetite in the current and forecast economic climate.”
Co-CEO, Michael Rom added: “We’re offering businesses an opportunity to scale, trade globally (and domestically) with confidence, diversity of funding, and create strong cash flow runways in times of both positive growth and global economic uncertainty. With the supply chain continuing to tighten across a diverse range of industries, coupled with rapidly rising interest rates and inflation, our innovative supply chain technology helps to provide peace of mind and transparency for our SME customers and their wider supply chain networks.”
Octet were recently named the 2022 Excellence in Business Lending winner at this year’s Fintech Australia Awards. The Seventh Annual Edition of the prestigious awards celebrated the success of dynamic players in the Australian fintech industry, recognising strong and sustainable growth and innovation.
Australia’s leading supply chain financier, Octet specialises in providing working capital and payments solutions to Australian business’ and their global and local trading partners.
Established in 2008, Octet’s vision is to connect and grow the world’s businesses via simpler, fairer and faster supply chain finance solutions.
Octet’s market-leading working capital solutions include:
Trade Finance –access increased purchasing power with a competitive, convenient line of credit – up to 120-day payment terms and 60 days interest-free.
Debtor Finance – relieve cash flow strain and get up to 85 per cent of your invoices paid immediately.
Supply Chain Accelerate – unlock liquidity with a revolutionary working capital solution, funding 100 per cent of your supplier invoices upfront, with 90-day payment terms.
OctetPay –pay smarter across borders with your chosen funding source, whilst using our bank-beating FX rates to get upfront visibility of exactly what you’ll pay in your local currency, while your supplier gets paid in their choice of 15 currencies.
Leading supply chain finance and technology provider, Octet has been named the 2022 Excellence in Business Lending winner at this year’s Fintech Australia “Finnies”. The Seventh Annual Edition of the prestigious awards celebrates the success of dynamic players in the Australian fintech industry.
The Excellence in Business Lending award acknowledges that Octet has demonstrated strong financial performance and outstanding B2B lending results through its innovative finance solutions:
Octet has continued to enhance and expand its secure “closed-loop” ecosystem, offering Trade Payable, Supply Chain and Receivable Funding solutions to empower Australian and New Zealand businesses and corporates.
The company has a 5-year CAGR of 40% and is now generating over $3bn per annum in turnover (TTV), with more than 200,000 members on its proprietary supply chain finance platform across 72 different countries.
Octet’s industry-leading supply chain management and banking platform enables seamless cross-border and domestic payments and receipts, whilst also providing additional layers of security to reduce risk of transactional fraud.
Commenting on the award win, Chief Commercial Officer, Brett Isenberg said: “we’re immensely proud of the whole Octet team for their unrelenting efforts in working towards our vision of connecting and growing the world’s businesses. This award recognises that we are well on our way to becoming a major destination for Aussie businesses to finance and manage their payables and receivables.
We’re offering businesses an opportunity to scale, trade globally (and domestically) with confidence, diversity of funding, and create strong cash flow runways in times of both positive growth and global economic uncertainty.
With the supply chain continuing to tighten, coupled with rapidly rising interest rates and inflation, Octet is well placed to fund growing business’ payables and accelerate sales receipts over the coming years. We project our compound growth will remain very strong for the foreseeable future.”
From manufacturing to pharmaceuticals, transport to food and beverage and online retail, Octet supports thousands of business leaders and suppliers across all industries to achieve growth and close the working capital gap.
Australia’s leading supply chain financier, Octet specialises in providing working capital and payments solutions to Australian business’ and their global and local trading partners.
Established in 2008, Octet’s vision is to connect and grow the world’s businesses via simpler, fairer and faster supply chain finance solutions.
Octet’s market-leading working capital solutions include:
Trade Finance –access increased purchasing power with a competitive, convenient line of credit – up to 120-day payment terms and 60 days interest-free.
Debtor Finance – relieve cash flow strain and get up to 85 per cent of your invoices paid immediately.
Supply Chain Accelerate – unlock liquidity with a revolutionary working capital solution, funding 100 per cent of your supplier invoices upfront, with 90-day payment terms.
OctetPay –pay smarter across borders with your chosen funding source, whilst using our bank-beating FX rates to get upfront visibility of exactly what you’ll pay in your local currency, while your supplier gets paid in their choice of 15 currencies.
Sydney, 2 February 2022: Australian supply chain finance and technology provider Octet has today announced the appointment of Judo Bank Co-Founder and former Chief Operations/Product Officer Tim Alexander as Non-Executive Director to the Board, effective from January 2022.
Demand for supply chain finance is growing in Australia from corporates and high-growth SMEs alike. In 2021, supply chain transactions on Octet’s platform surpassed $3bn and the company announced a scalable $300M warehouse funding facility to keep up with customer demand. Mr Alexander will bring his 25 years of small business-focused banking experience to supercharge this growth even further.
Prior to joining Octet, Mr Alexander held multiple senior roles at NAB and co-founded highly successful SME-focused Judo Bank in 2016. There, he held the positions of Chief Operating Officer and Chief Product Officer and was part of the senior team responsible for Judo’s rapid growth and innovation. This expertise will be invaluable in helping Octet in its ambition to launch an Octet-branded virtual corporate card directly linked to client facilities within the next year.
Commenting on the new role, Mr Alexander said “Octet is a unique fintech that is rapidly carving out a large addressable market by providing complementary transactional and unsecured finance solutions across the supply chain to quality, investment grade businesses. There is a huge degree of expertise in this business and proprietary technology and infrastructure, which makes it particularly scalable. The Octet team has a solid road map laid out, which I am excited to be contributing to.”
Octet’s Chief Commercial Office Brett Isenberg said, “We are excited to welcome Tim to the Octet team, his depth of financial services experience, leadership and underlying passion for helping businesses grow will be invaluable to us as we continue to scale Octet.”
Michael Rom, Octet’s co Chief Operating Officer and Technology Officer said, “Tim is an important addition to our board as we bolster our team for our next phase of growth. We look forward equally in both sharing and learning from each other to drive best-of-breed finance solutions for SMEs.”
Australia’s leading supply chain financier, Octet specialises in providing working capital and payments solutions to Australian business’ and their global and local trading partners.
Established in 2008, Octet’s vision is to connect and grow the world’s businesses via simpler, fairer and faster supply chain finance solutions.
Octet’s market-leading working capital solutions include:
Trade Finance –access increased purchasing power with a competitive, convenient line of credit – up to 120-day payment terms and 60 days interest-free.
Debtor Finance – relieve cash flow strain and get up to 85 per cent of your invoices paid immediately.
Supply Chain Accelerate – unlock liquidity with a revolutionary working capital solution, funding 100 per cent of your supplier invoices upfront, with 90-day payment terms.
OctetPay –pay smarter across borders with your chosen funding source, whilst using our bank-beating FX rates to get upfront visibility of exactly what you’ll pay in your local currency, while your supplier gets paid in their choice of 15 currencies.
The events of 2020 have dramatically shone a light on the importance of business continuity planning. And, with a crisis as significant and unprecedented as this, specifically looking at pandemic contingency planning is a must.
The swift arrival of COVID-19 meant many businesses scrambled just to keep operating. They may have had business continuity plans in place for a hypothetical crisis – however, the reality of enacting those plans in true crisis management mode, while addressing ever shifting workplace and societal requirements and planning for future changes, has been a challenge.
If you’re still in this position right now, we hope this article can make a difference.
What is a business continuity plan?
Put simply, a business continuity plan is an actionable plan to help your business prevent, prepare for, respond to and recover from a crisis – pandemic or otherwise.
Why do you need a business continuity plan?
It’s important your business plans for crises at any time – effective planning could be the difference between your business failing, remaining stable, or potentially even thriving in these adverse conditions.
An effective business continuity plan should minimise your risk to:
operations
staff
assets
cash flow
Your actions and preparedness should focus on ensuring everyone knows what’s expected of them and what to actually do. An effective plan could help save the livelihoods of many people. And during a pandemic, it may also save lives.
Should our business have a pandemic-specific continuity plan?
Yes – it’s the smart thing to do. Preparedness for a range of crises is important, but given the COVID-19 pandemic is the biggest issue many of us have faced in our lifetimes; companies who have been able to quickly activate a pandemic-specific contingency plan have enjoyed a distinct advantage – even if that’s just the benefit of their teams feeling more confident about what’s going on by knowing they’re able to work from home and/or understanding what’s expected of them as things change. If your business isn’t in that position – we’ll show you how to put a business contingency plan in place for the pandemic from here on in.
What you need to consider when developing a pandemic plan
Firstly, any workplace pandemic preparedness plan that’s implemented needs to have allowances for constant testing and revision. The process should ideally be a collaborative cycle with all the relevant parties (across public and private sectors – such as governments and councils, building management and waste providers) informing the planning.
Your pandemic planning checklist should address:
risk management
business impact analysis
incident response planning
disruption minimisation
recovery planning
Here are some specific pandemic contingency plan considerations.
Employee and customer safety
The priority in any workplace needs to be employee and customer safety. Social distancing and isolating are the most effective measures. So, your pandemic contingency plan must incorporate the ability for the whole team to work remotely if required. Additionally, you must consider how the team may be able to work on reduced schedules, stagger start times and postpone non-essential travel and meetings.
If a completely remote workplace isn’t a possibility, there are necessary precautions that will help you provide a safer environment.
Seek advice from the Australian Government Department of Health
Follow the recommendations on health.gov.au for up-to-date pandemic advice.
Keep up to date with your state government’s current restrictions
Each state has different restrictions, and they are continually changing. Make sure the guidelines you are following are current. Google your state’s healthy authority (such as NSW Health) and ‘COVID-19 restrictions’ to find the most current guidelines.
Assign a planning coordinator (or team)
A clear directive as to who within the company is responsible for creating a COVID-safe workplace is imperative. The role(s) should cover policy creation, review and implementation. Assign adequate resources to ensure your team can achieve their goals effectively.
Create a hygiene policy
Effectively create, educate on and facilitate a COVID safe hygiene policy. Increasing cleaning practices and providing preventative supplies such as hand sanitiser and PPE are just the first steps. Safe Work Australia has all of the relevant information available.
Minimise exposure
Providing adequate space for social distancing, avoiding unnecessary gatherings and staggering team start times should all be considered. Consider implementing an ‘a’ team, ‘b’ team model to minimise disruption in the case of possible exposure and the necessary self-isolation which follows.
Identify cultural, environmental and disability implications
When implementing a changed workplace, consider the implications for immune-compromised, disabled, or at-risk staff members. Unfortunately, not everyone is ‘safer at home’. Additionally, there may be discrepancies in areas such as home internet access. So be prepared to make additional options available for staff who need them.
Many companies are currently experiencing major supply chain issues (both globally and locally), so identifying supply chain improvement initiatives – with a focus on back-up options should be a priority.
Plan for worker absenteeism
The increased restrictions and focus on personal vigilance means that even if your employees remain COVID free, the necessity to isolate for any flu-like symptom or contact tracing can impact their ability to work. This is why any business continuity plan for a pandemic should always consider increased worker absenteeism. For employees with children, the (necessarily) strict precautions schools and daycare providers are taking means there will be disruptions that will most definitely affect their absentee rate.
Increase your cash flow to plan for disruptions in revenue
Of the 8,000+ companies that declared insolvency in 2018/19, more than half reported inadequate cash flow as the reason. Factoring solutions could be a good way to have a backup finance plan in place when planning for business continuity. You may also want to consider Trade Finance or Debtor Finance as part of your overall pandemic contingency plan to ensure cash flow blips with both procurement and receivables can be ridden out. Find out more about how Trade Finance works here.
Increase communication
Keep staff, partners, customers and stakeholders updated on your corporate pandemic plan via email, press and social media if appropriate. Make sure the tone of those communications is confident, honest and sensitive to the current climate. Celebrating certain business wins should be either avoided altogether or approached with heightened sensitivity.
Plan ahead. Be prepared. Stay well.
We hope these tips can help your business negotiate the unique position that 2020 has thrust us all into. Keep positive, stay vigilant – and most of all, keep yourselves, your employees and customers safe.
Disclaimer: The following comments are only our views and should not be construed as advice. You should act using your own information and judgment. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgment as at the date of publication and are subject to change without notice.