Butn Secures MOU with Top 40 Global Bank for Supply Chain Finance

New Distribution Channel Opens for Butn

Butn Limited (ASX:BTN) has taken a significant step forward in scaling its supply chain finance business by signing a Memorandum of Understanding with a Top 40 Global Bank to roll out buyer-led supply chain finance programs in Australia. This partnership promises to unlock a sizeable new distribution channel for Butn, combining the bank’s deep pockets and client base with Butn’s proprietary technology platform.

The arrangement positions Butn as the technology and operating partner, providing its platform for invoice ingestion, validation, payments, and servicing, while the Global Bank will handle funding, credit underwriting, and buyer relationships. This structure allows Butn to scale originations substantially without deploying its own balance sheet capital, preserving its funding capacity for other growth initiatives. The deal is expected to materially increase Butn’s originations and revenue, while also enhancing gross margins due to the use of Butn’s platform.

Strategic Milestone Validates Butn’s Platform

Founder and CEO Rael Ross described the MOU as a strategic milestone, highlighting that major global financial institutions are recognising the value of Butn’s technology. The partnership is designed as a blueprint for similar collaborations with other large financial institutions currently under discussion. Butn’s ability to become a preferred technology provider to such institutions could accelerate its growth trajectory significantly.

This announcement builds on Butn’s recent momentum, following record originations and revenue in March 2026, where platform originations surged 44% year-on-year to $55.7 million and revenue rose 30% to $1.5 million for the month. The new partnership could amplify these growth trends by tapping into the Global Bank’s established corporate client base and balance sheet funding capabilities, as Butn continues to expand its embedded SME funding solutions across Australia.

Execution and Launch Timeline

The MOU outlines that the Global Bank will provide funding for approved invoices and conduct buyer credit underwriting, while Butn will operate its platform end-to-end. The parties are working towards finalising legal documentation and internal approvals with a targeted program launch in the third quarter of calendar year 2026.

While the identity of the Global Bank remains undisclosed, Butn confirms it does not consider this information material to the pricing of its shares. The partnership is capital-light for Butn and could facilitate billions of dollars in originations annually, generating significant servicing fees. However, execution risk remains until definitive agreements are signed and the program is operational.