News & Analysis

Australian startup Octet partners with Chinese bank Asiafactor to provide SMEs with a global payment platform

- June 9, 2016 2 MIN READ

Following on from a partnership deal with Westpac earlier this year, Australian fintech startup Octet has today partnered with Chinese bank Asiafactor to provide SMEs with a global payment platform. Octet will now connect its customers across China to more than 10,000 world suppliers.

Octet is a supply chain management and financing platform that enables people to manage and pay international suppliers. The platform uses enterprise-grade tools to enable its customers to track, validate and authorise each step of the supply chain, with full visibility of all supporting documentation and the ability to facilitate payment through multiple methods.

Currently the platform is used by more than 1,000 Australian and New Zealand importers, spanning over 60 countries, facilitating over $1 billion in transactions.

Through the partnership with Asiafactor, Octet will now be able to serve both existing domestic small to medium enterprises, as well as to a vast range of prospective exporters throughout China. Customers leveraging the platform will be able to use their existing credit cards or other financing facilities to pay global suppliers at competitive exchange rates, removing the need for hard-copy forms and disclosure of secure financial information.

“Asiafactor’s partnership with Octet will provide peace of mind to small and medium exporters in China, who will now be able to use all the funding facilities available to Asiafactor’s clients when transacting with overseas and domestic buyers and suppliers,” said Clive Isenberg, managing director of Octet.

Earlier this year Octet worked with Westpac to offer Australian businesses a platform to facilitate credit card payments to pay overseas suppliers with support for 10 foreign currencies. Together Octet and Westpac developed the Business Link trading platform to give customers competitive real-time exchange rates to overseas suppliers.

“With Business Link, Westpac and Octet are making the supply chain management tools that have traditionally been the realm of large enterprises accessible to SMEs by making cross-border payments and transactions between businesses frictionless,”  said Octet managing director, Clive Isenberg.

With Octet now expanding its services to Shenzhen-based bank Asiafactor, the startup is on track to dominate the Asia-Pacific region in terms of innovative supply chain financing tools. Chinese suppliers can now look to Australian innovators to offer competitive products to increase the efficiency of traditional “cash-only” systems.

With the use of Octet’s payment platform, Asiafactor will be able to give local Chinese SME suppliers more options and account terms. Previously these suppliers insisted on trading a “cash-only” basis due to regulatory restrictions and antiquated systems. From today, Asiafactor’s members with approved credit limits will now find it easier to negotiate with their suppliers to accept payments through Octet’s platform.

“We understand the restrictive cash flow issues faced by small and medium businesses in China and are always looking for ways to utilise innovative technology to assist companies grow,” said Ang Li, assistant president of Asiafactor.

“Our latest partnership with Octet means we can provide companies with a market forum to communicate and trade quickly and fluidly. Each step of a trade transaction can be easily verified, a critical point for supply chain financiers such as Asiafactor.”

Image: Michael Rom, Peter Gammell, Clive Isenberg and Brett Isenberg. Source: Supplied.