Declined by Octet for trade or debtor finance?

If Octet declined your trade finance, debtor finance or working-capital facility, the reason usually sits in the supplier invoices or the debtor book behind it. HomeSec lends $20,000 to $5,000,000 secured on real estate instead, so neither is assessed. The loan can fund stock, supplier deposits and working capital, with up to six months of no repayments.

If Octet declined your application, or the facility on offer would not cover the order in front of you, the issue is usually the paperwork that trade and debtor finance rely on, not whether the business is sound. HomeSec offers Australia's fastest and most flexible business loans, with up to 6 months no payments, secured on property instead.

About Octet, briefly

Octet provides trade finance, debtor (invoice) finance and working-capital facilities to business-to-business companies. For an importer or wholesaler with established suppliers and a healthy spread of trade customers, a facility that pays suppliers and funds receivables can fit the trading cycle well.

Why trade and debtor finance applications get declined

These facilities lean on the documents behind each transaction, so problems usually show up there:

• A new or overseas supplier. A first order with a new supplier, or a deposit due before goods are shipped, can fall outside what a trade facility will pay.
• An order bigger than the facility. A seasonal buy, a bulk discount or a large contract can need more in one go than the limit allows.
• Debtors concentrated or slow. If one customer dominates the ledger or customers pay late, the debtor side of the facility shrinks.
• Sales to consumers as well as businesses. Business-to-business facilities are built for trade customers; retail or online sales to the public do not count.
• Thin margins in the latest accounts. A year of investment in stock or growth can make the figures look weaker just as the facility is reviewed.

Funding the cycle with a loan secured on property

A HomeSec loan does not look at supplier invoices, shipping documents or an aged debtors report. It is assessed on the property, the equity in it, the business purpose and how the loan is repaid. The money arrives as one lump sum, which can pay a supplier deposit, buy a season's stock or carry the business while customers pay, and it can be paid down as sales come in. Ad-hoc paydowns from $10,000, once outside the capitalised-interest period.

If a supplier has already put you on stop, the deadline is real. See when a supplier stops supply and working capital loans.

Who this suits

Importers paying deposits offshore, wholesalers buying ahead of a season and manufacturers carrying raw materials for a large order. See wholesale and distribution and manufacturing.

What to do in the next 24 hours

1. Confirm the supplier's deadline and amount, including any deposit due before shipping.
2. Work out the full cycle: from paying the supplier to being paid by your customers.
3. Have the property details ready: address, rough value and what is owing.
4. Plan the paydowns as customer payments arrive.
5. Call a Lending Manager to see whether it works before the supplier's date.