Supply chain lender Octet has secured a long-term partnership with BOQ that will see it assume responsibility for all the bank’s debtor finance clients across Australia.
According to the SME lender, the partnership agreement will see Octet provide selected B2B supply chain finance products to BOQ’s customer base and network.
Effective immediately, all of BOQ’s existing debtor finance business will be transferred to Octet, with the SME lender assuming responsibility for all the bank’s debtor finance clients across Australia.
As part of this relationship, BOQ will be providing a funding warehouse to Octet, which has been through a period of rapid expansion in the past few years.
It will also reportedly look to expand the partnership by integrating its suite of SME supply chain finance solutions within BOQ.
Speaking of the new partnership, which is reportedly the fintech’s first collaboration with “a traditional lender in the business finance market”, Octet’s CEO, Clive Isenberg, commented: “We are delighted with Bank of Queensland’s decision to select us to partner in this working capital offering. While we proudly wear the label of a ‘challenger’ to traditional financial players, we are very pleased to link up with Bank of Queensland on this venture as it provides an opportunity to showcase the benefits of our supply chain management and financing platform.”
Mr Isenberg revealed that BOQ “wanted to find a market-leading provider to help deliver a superior service to their debtor finance customers”, adding that Octet’s offering and experience would help “deliver an enhanced outcome for the BOQ and Octet”.
“It’s a compelling proposition and importantly provides a platform for expanding the partnership,” he said.
“This deal underscores the exciting point in Octet’s growth journey we have now reached. Octet was born out of a desire to help local businesses buy from SME suppliers in Asia Pacific and other emerging regions. Our priority has been on financing and managing the supply chain by bringing together multiple financial sources to maximise business opportunities for both buyers and sellers.
“We’re genuinely looking forward to sharing our market-leading supply chain financing and payment tools with small and medium businesses globally.”
Likewise, Octet chairman Peter Gammell commented: “Our partnership with Bank of Queensland is another breakthrough transaction for Octet and signals the next chapter in the evolution and expansion of Octet.
“[This] announcement is absolutely in line with our strategy of harnessing our best-in-class technology to centralise business finance and payments so our clients can carry out all their business supply chain transactions within a single platform.”
BOQ has not yet issued a comment.
Annie Kane is the editor of The Adviser and Mortgage Business.
As well as writing about the Australian broking industry, the mortgage market, financial regulation, fintechs and the wider lending landscape – Annie is also the host of the Elite Broker and In Focus podcasts and The Adviser Live webcasts.
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