4. PEOPLE
• Founded Octet in February 2008
• Former director of National Hire Group Ltd
• Former director of Bank of Scotland subsidiaries: Western Australia Holdings Ltd, BOS International (Australia) Ltd, Capital Finance Ltd
• Past founder of Scottish Pacific Business Finance in 1988 (7th largest private Australian company between 1997 - 2000)
• Grew Scottish Pacific to aggregate revenue of $6b by 2000
• Chairman of Oxford Asia Pacific Investments
• Fellow of CPA Australia, Associate of Institute of Chartered Accountants in Australia
Clive Isenberg Founder
Founded
Scottish Pacific
Business Finance
Scottish Pacific Becomes ANZ
Largest Cash Flow Financier
Scottish Pacific Sells To
St George Bank
1988 1995 20001994
Established ANZ Institute of
Factors and Discounters
(now DIFA)
1996
Elected Chairman of World
Factoring and Invoice
Discounting Body (FCI)
5. PEOPLE
Peter Gammell Chairman
• Current chairman of Octet
• Current non executive of Seven West Media
• Former chief executive officer and managing director of Seven Group Holdings Ltd
• Former deputy chairman of Australian Capital Equity, Kerry Stokes investment vehicle
• Former non executive chairman of Scottish Pacific Business Finance
• Former chairman of Coates Hire
• Former director of RM Williams Holdings Ltd
• Former director of B Digital Ltd
• Former director of Castle Cairn (Financial Services) Ltd and member of IMRO in Edinburgh, Scotland
• Former director of Cairn Energy Management Ltd and Cairn Energy PLC
7. BACKGROUND
• Octet Trading Ltd (OT) is a Hong Kong domiciled company
• OT provides a business-to-business transaction management platform
• OT licenses Financial Institutions to use the platform
• Platform is provided exclusively to licensed Financial Institutions and their respective Buyers and Sellers
• OT provides Financial Institutions with pro forma Buyer/Seller legal documentation to use or adapt
PLATFORM
Supply Chain Platform
Octet Trading Supply Chain Platform
Develops
Financial Institutions Buyer & Seller
Grants
Access
“Octet is a platform that links businesses that have things to businesses that need things”
Licenses
Platform
8. BACKGROUND
• Platform requires participating parties: Buyer, Seller and their financiers
• Licenced Financial Institutions provide the supply chain and cash flow finance platform to their customers through
a secure online platform
• Platform launched in February 2008
PLATFORM
Supply Chain Platform
9. FEATURES
Links businesses that sell to businesses that buy.
Platform is a commerce enabler.
OVERVIEW
Octet Trading Platform
Feature overview of the Octet Supply Chain Financing Platform
Connection
Secure
International
Overcomes Limitations
Mobile
Built upon enterprise grade industry security standards.
Ensures that Buyer, Seller and Financial Institutions have peace of mind.
Enables secure commerce for business-to-business transactions, domestically and
internationally.
Including transactions between: China, Hong Kong, Taiwan, Australia, NZ, USA, Canada,
Singapore, India, Japan, South East Asia and Europe
Overcomes all shortcomings, risk and limitations of traditional transaction financing.
Incorporates universal acceptability and familiarity of the consumer credit card process.
Platform is fully operational on smart phones and compatible with iOS™ and Android ™.
Buyers and Sellers can also connect in order to trade seamlessly.
11. FEATURES
Enables Buyers and Sellers to track, validate and
authorise each step of the supply chain with full
visibility of all supporting documentation*
OVERVIEW
01
*including purchase order, inspection certificates, bills of lading and so forth
12. FEATURES
Provides a unique matching and approval
system which requires member interactions
from both sides of the transaction*
OVERVIEW
02
*this progresses through a set of authorising steps using digital certificates or one-time PIN technology
13. FEATURES
Provides a competitive & live foreign exchange
feed to Buyers for each transaction*
OVERVIEW
03
*currently limited to spot rates but has the capability to support forward options
14. FEATURES
Supports a Seller guaranteed facility, enabling
cash flow acceleration by allowing a Buyer to
underwrite surplus credit limits to their
customers
OVERVIEW
04
15. FEATURES
Incorporates an integrated Sales Ledger
Financing module and a Designated Assets
Financing module allowing a Buyer to provide
security when required
OVERVIEW
05
16. FEATURES
Incorporate all the controls and processes that a Financial Institution requires, including
fraud or credit risk, in order to finance the working capital transactions of a client
OVERVIEW
Octet Trading Platform
Core platform philosophy
Controls and Processes
Eliminate Interference
Validation &
Verification
Keep the Financial Institution at a distance to eliminate interference in the trade process
of the Buyer and Seller
Ensure that the four parties correctly confirm key phases of the trading transaction,
reducing risk of financing options
18. VALUE BUYERS
Value Proposition - Buyers
SPEED Accelerates cash flow cycle
LANGUAGE Multilingual supply chain procurement tool
TIME Shortening time to complete documentary trade cycle
CREDIT CARD Repay short term loan with existing credit card facility
19. VALUE BUYERS
Value Proposition - Buyers
FOREX Live foreign exchange feeds at transaction time
VISIBILITY Storage and visibility of all original trade source documentation
DEPOSITS Fund deposits on international purchase orders
CREDIT LINE Utilise surplus credit facility to fund their customers
20. VALUE SELLERS
Value Proposition - Sellers
Enables Buyer to pay for transactions using their already existing credit cards (Visa, MasterCard and
American Express), without the Seller requiring merchant services or incurring a merchant fee.Accept Credit Cards
Buyer & Seller
Relationship
Paid Faster
The Seller no longer needs to be the credit provider and debt collector which enhances and
strengthens the sales relationship between the Buyer and Seller.
Buyers can pay Sellers once an order is checked and released for shipping. Buyers can be provided
additional credit facilities, increasing their purchasing power.
Sellers can free up encumbered assets where Buyers are offered open account terms. Buyers can access
a mixture of credit products, including 60 days interest-free credit and further 60 days for repayment.Open Account Terms
Reduce Credit Sale Risk
Octet addresses and resolves buyer concentration risk concerns in the Seller’s books as well as
dispute issues and debt defaults.
21. VALUE SELLERS
Value Proposition - Sellers
Closed Community
Reduce Costs
Octet enables secure and efficient transactions through a ‘closed community’, ensuring a secure
web-based trading network.
Octet streamlines the collections process which reduces the Seller’s debtor administration and risk
for bad debts.
Sellers have full visibility and transparency on all phases in the transaction process, including associated
documentation and are able to claim payment at any time.Workflow Efficiency
Multilingual
Octet is a multilingual platform which greatly reduces associated risks of miscommunication.
Octet enables Financial Institution members to award reward points to Buyers on all purchases,
which encourages increased spending with Sellers.Earn Reward Points
22. EXAMPLE CALTEX as Buyer and Seller
Octet enables Company X as a Seller to accelerate DSO by allowing
Company X to underwrite surplus credit limits to their customers. In
addition, Octet provides Company X as a Buyer with an unsecured facility to
push out DPO. $1.5M
$2.5M
$1.0M
$3.0M
$1.5M
$4.0M
$2.5M
$1.0M
$2.0M
$1.0M
Limit $20M
Customers
Seller
Buyer
Limit $10M
$3.0M
$2.5M
$1.5M
$3.0M
Suppliers
Company
X
23. VALUE BUYERS
Value Proposition – Company X as a Buyer
Off Balance Sheet Octet provides unsecured credit which enables Company X to keep their
Debt/Equity and Leverage ratios low
Early Settlement Octet enables Company X to pay their suppliers earlier through 60 interest free days
to make an arbitrage on the fee charged through a higher discount
Flexibility Octet allows Company X to use an Octet unsecured facility, an existing credit card, the
utilization of Company X own funds via their bank or a combination.
24. VALUE SELLERS
Value Proposition – Company X as a Seller
Closed Community
Reduce Costs
Octet enables secure and efficient transactions through a ‘closed community’, ensuring a secure
web-based trading network.
Octet streamlines the collections process which reduces the Company X’ debtor administration and
risk for bad debts.
Company X has full visibility and transparency on all phases in the transaction process, including
associated documentation and are able to claim payment at any time.Workflow Efficiency
Additional Revenue
Octet may provide additional unsecured funds to Company X’ customers allowing them to purchase
more from Company X
Octet enables Company X to allocate Octet funds to designated customer for guaranteed payment
on day x, which further reduces Days Working Capital.Accelerate DSO
26. EXAMPLE
Negotiate Claim & AuthoriseEnrolment SettlementClosed Community
Buyer and Seller apply and become members of the
Octet Trading Platform to allow seamless and secure trade
27. EXAMPLE
Negotiate Claim & AuthoriseEnrolment SettlementClosed Community
Buyer and Seller are connected in a Closed Community
where all parties are known ensuring a secure trading network
28. EXAMPLE
Negotiate Claim & AuthoriseEnrolment SettlementClosed Community
Buyer and Seller negotiate a transaction by validating,
verifying and confirming a purchase order
29. EXAMPLE
Negotiate Claim & AuthoriseEnrolment SettlementClosed Community
Seller requests payment through the platform and
Buyer securely authorises payment
30. EXAMPLE
Negotiate Claim & AuthoriseEnrolment SettlementClosed Community
Buyer makes payment through the platform using any source of
funds, including existing credit card or trade facility.
Seller receives funds through settlement process.
* Zero Limit Facilities are funded through Buyer credit card payments
*
