Under the deal, announced on Thursday, the successful Chinese finance organisation will leverage Octet’s supply chain management and financing platform to enable its customers to manage and pay international suppliers, saving time and freeing up their cashflow.
Asiafactor 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.
The company’s customers will also gain access to more than 10,000 suppliers and customers using the Octet platform through licensees in Australia, Canada, US, Turkey and China.
The Octet/Asiafactor deal follows a recent announcement of what Isenberg says was a “landmark” partnership between Octet and Australia’s largest business bank, Westpac Banking Group, to launch Business Link, an Octet-enabled supply chain management platform.
Isenberg says Asiafactor’s new payment platform will give more options and account terms to local Chinese small and medium suppliers who previously insisted on trading on a “cash-only basis due to regulatory restrictions and antiquated systems”. He says Asiafactor’s members with approved credit limits will also find it easier to negotiate with their suppliers to accept payments through the platform.
Ang Li, Asiafactor assistant president, said: “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."