A new partnership between Connective and Octet is set to provide brokers with swifter access to working capital as smaller businesses brace for a tighter cash rate cycle.
Connective has rolled out a new small and medium-sized enterprise (SME) cash flow line, Connective Cashflow, after signing a white label funding partnership with working capital specialist Octet – with the deal aimed at opening up faster, non‑property‑backed finance options.
The deal comes as more intermediaries move into business lending, with brokers now originating roughly 30 to 40 per cent of commercial lending volumes nationally.
The group said SME clients were increasingly looking for facilities that kept day‑to‑day operations moving, particularly as some traditional credit options tighten.
Under the arrangement, Connective Cashflow sits within the Connective lending portfolio, but is funded by Octet – giving brokers access to trade finance, debtor finance, and term loans.
Connective said the facilities were designed to cover needs such as paying suppliers, bridging invoice gaps, and funding inventory cycles.
Head of commercial and asset finance, Brent Starrenburg, said the shift in demand from smaller businesses had been pronounced.
“More SME clients are looking for funding solutions that align with how their businesses operate, not just what they can secure against property,” Starrenburg said.
“This gives brokers a practical way to solve those challenges, while also creating new revenue opportunities and strengthening long-term client relationships.”
Product mechanics and early pipeline
The aggregator noted that deal support would come from specialist business development managers who work with product matrices and hold delegated authority for approvals on trade and debtor deals up to $1.5 million.
It said that the structure was designed to accelerate decision‑making and keep transactions inside Connective’s own framework.
The aggregator said that initial engagement since launch had been strong, with a growing pipeline of transactions across multiple industries already under credit assessment.
Connective said Octet’s focus on supply‑chain and cash flow finance underpinned the white label offer, with the fintech’s platform powering risk assessment and funding.
Payday super ramps up cash flow pressure
The launch has been timed ahead of Payday Super reforms due to commence from 1 July, which will require employers to pay superannuation at the same time as wages.
The aggregator said Connective Cashflow had been structured to help clients manage these shorter cash cycles, providing headroom to meet super and payroll obligations.
The group emphasised that the facilities were intended to be flexible working capital tools, giving businesses room to adapt.
Broker channel’s role in business finance evolves
Head of Connective Lending, Michael Goerner, said the partnership was part of a broader shift in how the third‑party channel engaged with business customers.
“Brokers are moving beyond transactional lending and becoming more embedded in their clients’ broader financial needs,” Goerner said.
“This white label partnership supports that shift, giving brokers the tools to help clients manage cash flow, support growth, and navigate more complex funding scenarios.”
Managing director at Octet, Clive Isenberg, said the tie‑up marked an important step in how specialist cash flow solutions were delivered to the market.
“This partnership is a significant milestone for the industry. Connective Cashflow brings together Australia’s leading supply chain financier and Connective’s extensive broker network to make it faster and easier for brokers to deliver tailored cash flow solutions when businesses need them most,” Isenberg said.
“Connective Cashflow, powered by Octet, creates a powerful opportunity for brokers and their SME clients, helping them unlock growth and manage cash flow with confidence.”
[Related: Connective outlines next phase for Mercury Nexus]
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