Types of Business Transaction Facility
Octet has the flexibility to match your current trading agreements
Importer/exporter agreements don’t all conform to a single standard, so we’ve made Business Transaction Facilities flexible, enabling you to use yours in the way that best suits your trading relationship. Here are the three ways you can deal with your overseas buyers through Octet.
1 Octet Direct Payment
This is the ‘full service’ Business Transaction Facility. You use the Octet portal to arrange the transaction with your overseas buyer and Octet pays you on agreed completion of the order.
2 Octet Arranged LC
Under this option you continue to use a Letter of Credit, but now you can design unique repayment terms for each buyer. Octet provides the LC, but does not require any security from the overseas buyer. The transaction is managed through the Octet portal. Octet will issue you with an LC from a Chinese Bank. The bank pays you and Octet reimburses the bank.
3 Buyer Direct Payment
If you are already extending credit terms to your overseas buyers, you can use the Octet portal to manage the transaction. You are then paid by your overseas buyer directly rather than Octet. Depending on how much it costs you to extend credit terms, you may be better off allowing Octet to offer credit rather than do it yourself.