Butn signs MOU with Global Bank to launch buyer-led supply chain finance programme in Australia

Butn Ltd (ASX: BTN) has announced the execution of a Memorandum of Understanding (MOU) with a global bank active in supply chain finance and with a well-established presence in Australia. This MOU sets the framework and timeline for collaboration on formal legal documentation ahead of the development and deployment of a buyer-led supply chain finance programme.

Rael Ross, Founder and CEO of Butn, said, “This executed MOU and major partnership is an important strategic milestone for Butn. It demonstrates that leading major global financial institutions recognise the benefits of Butn’s proprietary Platform and are looking to partner with us to deliver solutions to their clients.”

“We look forward to launching a world-class programme for the Global Bank and using this as a stepping stone to roll out further programmes in other geographies and with more partners,” he added.

Partnership overview and programme scope

The initial rollout of the programme will take place in Australia. Under the agreement, the global bank will provide funding for approved invoices, while Butn will supply its proprietary technology platform. This platform encompasses invoice ingestion, validation, payments, and programme servicing, delivering an end-to-end buyer-led supply chain finance solution.

Butn anticipates that this partnership will evolve into a sizable channel for its technology, characterised by a capital-light model that leverages the global bank’s balance sheet for funding. 

The arrangement provides a scalable template for similar collaborations with other large financial institutions.

A glance at the key terms of the MOU

Butn will provide and operate its proprietary platform, managing invoice ingestion, validation, eligibility checks, supplier onboarding, compliance screening, payments, reporting, and servicing.

The global bank will fund approved invoices, conduct buyer credit underwriting, set programme limits, and manage buyer relationships.

Servicing fees payable to Butn will be agreed upon on a programme-by-programme basis, reflecting the scale of each buyer and programme. The potential exists to facilitate billions of dollars in originations annually, generating significant fees for Butn.

The commencement of any programme is subject to internal approvals and execution of definitive buyer programme agreements.

Programme structure and strategic positioning

This MOU is a big step in Butn’s strategy to position its proprietary platform as the preferred technology and operating infrastructure for financial institutions. Partnering with the global bank grants Butn access to the bank’s balance sheet and established corporate client base, while the bank benefits from Butn’s purpose-built platform and technology-driven funding expertise.

The programme’s structure, in which the global bank assumes credit risk, and Butn provides the platform and servicing, enables Butn to scale substantially without deploying its own balance sheet capital, thereby preserving funding capacity for other growth initiatives.

The parties are working towards an initial go-live scheduled for the third quarter of calendar year 2026.