<SUBMISSION>
<ACCESSION-NUMBER>0000950142-03-001567
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>3
<PERIOD>20030915
<ITEMS>7
<ITEMS>9
<FILING-DATE>20030916
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>ACTRADE FINANCIAL TECHNOLOGIES LTD
<CIK>0000819255
<ASSIGNED-SIC>6153
<IRS-NUMBER>133437739
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>0630
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>000-18711
<FILM-NUMBER>03896456
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>7 PENN PLZ STE 422
<CITY>NEW YORK
<STATE>NY
<ZIP>10001
<PHONE>2125631036
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>7 PENN PLAZA STE 422
<STREET2>7 PENN PLAZA STE 422
<CITY>NEW YORK
<STATE>NY
<ZIP>10001
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>ACTRADE INTERNATIONAL LTD
<DATE-CHANGED>19930518
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form8k_091503.txt
<DESCRIPTION>CURRENT REPORT
<TEXT>

   As filed with the Securities and Exchange Commission on September 15, 2003


                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 8-K
                                 CURRENT REPORT
                     PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934


      Date of Report (date of earliest event reported): September 15, 2003


                       ACTRADE FINANCIAL TECHNOLOGIES LTD.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)


           DELAWARE                        0-18711              13-3437739
--------------------------------        -----------         ------------------
(State or other jurisdiction of         (Commission            (IRS Employer
         incorporation)                 File Number)        Identification No.)


7 PENN PLAZA, SUITE 422, NEW YORK, NY                             10001
---------------------------------------                         ---------
(Address of principal executive offices)                        (Zip Code)


Registrant's telephone number, including area code:          (212) 563-1036
                                                            -----------------


<PAGE>

                                                                               2


ITEM 7.  FINANCIAL STATEMENTS AND EXHIBITS.

         (a)      Financial Statements.

                  Not applicable.

         (b)      Pro Forma Financial Information.

                  Not applicable.

         (c)      Exhibits.


                  EXHIBIT NO.       DESCRIPTION
                  -----------       -----------

                  99.1              Actrade Financial Technologies Ltd. Monthly
                                    Operating Statement for the period August 1,
                                    2003 through August 31, 2003

                  99.2              Actrade Capital, Inc. Monthly Operating
                                    Statement for the period August 1, 2003
                                    through August 31, 2003


ITEM 9.

REGULATION FD DISCLOSURE.

                  On September 15, 2003, Actrade Financial Technologies Ltd.
(the "Company"), and one of its direct U.S. subsidiaries, Actrade Capital, Inc.
("Capital"), each filed a monthly operating statement for the period August 1,
2003 through August 31, 2003 (together, the "Operating Reports") with the United
States Bankruptcy Court for the Southern District of New York. Copies of the
Operating Reports of the Company and Capital are filed as Exhibits 99.1 and 99.2
hereto and incorporated by reference herein.

LIMITATION ON INCORPORATION BY REFERENCE

                  In accordance with General Instruction B.2 of Form 8-K, the
information in this Item 9 shall not be deemed "filed" for purposes of Section
18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or
otherwise subject to the liabilities of that Section, nor shall such information
be deemed incorporated by reference in any filing under the Securities Act of
1933, as amended, except as shall be expressly set forth by specific reference
in such a filing. The information set forth in this Item 9 will not be deemed an
admission as to the materiality of any information required to be disclosed
solely to satisfy the requirements of Regulation FD.

<PAGE>

                                                                               3


CAUTIONARY STATEMENT REGARDING FINANCIAL AND OPERATING DATA

                  The Company cautions readers not to place undue reliance upon
the information contained in the Operating Reports. The Operating Reports
contain financial statements and other financial information that has not been
audited by independent accountants and may be subject to future revision,
reconciliation and adjustment. The Operating Reports are in a format prescribed
by applicable bankruptcy laws and should not be used for investment purposes.
The Operating Reports contain information for periods different from those
required in the Company's reports pursuant to the Exchange Act, and that
information might not be indicative of the Company's or Capital's financial
condition or operating results for the period that would be reflected in the
Company's or Capital's financial statements or in the Company's reports pursuant
to the Exchange Act. Results set forth in the Operating Reports should not be
viewed as indicative of future results.

                  In addition, it should be noted that (a) the Company has not
completed its financial statements as of or for the fiscal years ended June 30,
2002 or June 30, 2003, or received its independent public accountants' report
thereon or filed with the Securities and Exchange Commission (the "SEC") its
Annual Report on Form 10-K for the years ended June 30, 2002 or June 30, 2003,
(b) the Company's independent public accountants, Deloitte & Touche LLP,
suspended their auditing work on the Company's financial statements for the
fiscal year ended June 30, 2002, (c) the Company has not completed its financial
statements as of and for the three months ended September 30, 2002, December 31,
2002 or March 31, 2003 or filed with the SEC its Quarterly Report on Form 10-Q
for the quarters ended September 30, 2002, December 31, 2002 or March 31, 2003,
and (d) as stated in the Company's December 12, 2002 press release (the
"December 12 Release"), the Company's historical financial statements and SEC
filings should not, at this time, be relied upon.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

                  Certain information contained in this press release
constitutes forward-looking statements for purposes of the safe harbor
provisions of The Private Securities Litigation Reform Act of 1995. Actual
results or events may differ materially from those indicated by such
forward-looking statements as a result of risks and uncertainties due to the
Company's pending litigation and ongoing internal evaluation and regulatory and
law enforcement investigations, each as described in the Company's recent press
releases, including the Company's December 12, 2002 and subsequent press
releases. Other factors that may cause results or events to differ materially
from those indicated by such forward-looking statements include, but are not
limited to: uncertainties regarding the possibility of restatements of documents
previously filed by the Company with the SEC, including restatements of the
Company's financial statements; uncertainties regarding the ability of the
Company to finalize a pending settlement of the obligations of certain bankrupt
customers of the Company and the Taiwanese parent corporation of certain of
those customers, as well as the Company's claims under certain related surety
bonds, all as more fully described in the Company's Current Reports on Form 8-K
dated May 13, 2003 and June 24, 2002; additional facts found by the Company in
connection with the

<PAGE>

                                                                               4


issues that are the subject of an internal evaluation; uncertainties regarding
the Company's Chapter 11 bankruptcy process; uncertainties regarding the
Company's ability to collect on all its outstanding receivables; and those
factors discussed in the Company's Form 10-Q for the quarter ending March 31,
2002, which is on file with the SEC. In addition, any forward-looking statements
represent our estimates only as of today and should not be relied upon as
representing our estimates as of any subsequent date. While we may elect to
update forward-looking statements at some point in the future, we specifically
disclaim any obligation to do so, even if our estimates change.


<PAGE>

                                                                               5


                                   SIGNATURES

                  Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.


                                   ACTRADE FINANCIAL TECHNOLOGIES LTD.


                                   By:  /s/ John Fioretti
                                        ---------------------------------------
                                        Name:   John Fioretti
                                        Title:  Chief Restructuring Officer



Dated:   September 11, 2003


<PAGE>

                                                                               6


                                  EXHIBIT INDEX


    EXHIBIT            DESCRIPTION
    -------            -----------

    99.1               Actrade Financial Technologies Ltd. Monthly Operating
                       Statement for the period August 1, 2003 through August
                       31, 2003

    99.2               Actrade Capital, Inc. Monthly Operating Statement for the
                       period August 1, 2003 through August 31, 2003


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>3
<FILENAME>ex99-1form8k_091503.txt
<DESCRIPTION>EXHIBIT 99.1
<TEXT>

                                                                    EXHIBIT 99.1
                                                                    ------------



PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP
Jeffrey D. Saferstein (JS/5339)
Erica Weinberger (EW/1411)
1285 Avenue of the Americas
New York, New York 10019-6064
Telephone:  (212) 373-3000
Attorneys for Debtor in Possession

UNITED STATE BANKRUPTCY COURT
SOUTHERN DISTRICT OF NEW YORK
--------------------------------------------x
                                            :         Chapter 11
In re:                                      :         Case No. 02-16212 (ALG)
                                            :
ACTRADE FINANCIAL TECHNOLOGIES LTD.         :
                                            :
                              Debtor.       :
                                            :
--------------------------------------------x


                         MONTHLY OPERATING STATEMENT FOR
                  THE PERIOD AUGUST 1, 2003 TO AUGUST 31, 2003
                  --------------------------------------------

<PAGE>

UNITED STATE BANKRUPTCY COURT
SOUTHERN DISTRICT OF NEW YORK

                                              CHAPTER 11 CASE NO. 02-16212 (ALG)


                       Actrade Financial Technologies Ltd.
================================================================================
                                     DEBTOR


                         Monthly Operating Statement For
                  The Period August 1, 2003 to August 31, 2003


DEBTOR'S ADDRESS:
-----------------
Actrade Financial Technologies Ltd.
7 Penn Plaza, Suite 422
New York, NY 10001

                                        Monthly Disbursements:  $          NONE
                                                                ---------------

DEBTOR'S ATTORNEY:
------------------
Paul, Weiss, Rifkind, Wharton & Garrison LLP
1285 Avenue of the Americas
New York, NY 10019

                                        Monthly After Tax Loss: $        (2,000)
                                                                ---------------

         The undersigned, having reviewed the attached report and being familiar
with the Debtor's financial affairs, verifies under the penalty of perjury, that
to the best of my knowledge, information and belief, the information contained
therein accurately reflects, on an unconsolidated basis, information contained
in the Debtor's books and records and public filings. As stated in previous
disclosures, no assurances can be given and no reliance should be made, on the
Debtor's books and records, and on the information contained in the Debtor's
public filings.

         The undersigned also verifies that, to the best of his knowledge, all
insurance policies, including workers compensation and disability insurance,
have been paid currently.



DATE:  September 15, 2003          By:  /s/  John Fioretti
                                        ---------------------------------------
                                        John Fioretti
                                        Chief Restructering Officer
                                        Actrade Financial Technologies Ltd.


Indicate if this is an amended statement by checking here

                                        Amended Statement       [_]

<PAGE>


           ACTRADE FINANCIAL TECHNOLOGIES LTD.
             (DEBTOR-IN-POSSESSION)
           BALANCE SHEET
          AUGUST 31, 2003
            (DOLLARS IN THOUSANDS)



ASSETS

CURRENT ASSETS:
     Cash                                                       $             1
     Other current assets                                                    33
                                                                ----------------
         Total Current Assets                                                34


DUE FROM SUBSIDIARIES                                                    18,940

INVESTMENTS IN SUBSIDIARIES                                                 320
                                                                ----------------
TOTAL ASSETS                                                    $        19,294
                                                                ================

LIABILITIES AND STOCKHOLDERS' EQUITY
     Accrued expenses                                           $         1,300
                                                                ----------------

         Total Current Liabilities                                        1,300

Liabilities Subject to Compromise:

     Accrued expenses                                                       303
                                                                ----------------
TOTAL LIABILITIES                                                         1,603
                                                                ----------------
STOCKHOLDERS' EQUITY
     Common stock, $0.0001 par value; authorized 100,000,000
      shares, issued and outstanding 11,849,490 shares at August
      31, 2003                                                                1
     Additional paid in capital                                          58,102
     Accumulated deficit                                                 (1,209)
     Treasury stock at cost; 1,336,678 shares at August 31, 2003        (39,203)
                                                                ----------------
     Total Stockholders' Equity                                          17,691
                                                                ----------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                      $        19,294
                                                                ================

                       See Notes to Financial Statements.


                                        2
<PAGE>

                       ACTRADE FINANCIAL TECHNOLOGIES LTD.
                             (DEBTOR-IN-POSSESSION)
                             STATEMENT OF OPERATIONS
                             (DOLLARS IN THOUSANDS)


<TABLE>
<CAPTION>
                                                                                                  FOR THE PERIOD
                                                                                                 DECEMBER 13, 2002
                                                                    MONTH ENDED                       THROUGH
                                                                  AUGUST 31, 2003                 AUGUST 31, 2003
                                                                  ---------------                 ---------------
<S>                                                               <C>                             <C>
Revenue                                                           $      --                       $     --

Operating Expenses:
     General and administrative expenses                                  2                             33
                                                                  ---------                       --------
Total Operating Expenses                                                  2                             33
                                                                  ---------                       --------
Loss before reorganization items and income tax benefit                  (2)                           (33)

Reorganization items:
         Interest earned on accumulated cash resulting from
            Chapter 11 proceeding                                        --                             --
                                                                  ---------                       --------


Net loss                                                          $      (2)                      $    (33)
                                                                  =========                       ========
</TABLE>

                       See Notes to Financial Statements.


                                        3
<PAGE>

                       ACTRADE FINANCIAL TECHNOLOGIES LTD.
                             (DEBTOR-IN-POSSESSION)
                             STATEMENT OF CASH FLOWS
                             (DOLLARS IN THOUSANDS)


<TABLE>
<CAPTION>
                                                                                                  FOR THE PERIOD
                                                                                                 DECEMBER 13, 2002
                                                                    MONTH ENDED                       THROUGH
                                                                  AUGUST 31, 2003                 AUGUST 31, 2003
                                                                  ---------------                 ---------------
<S>                                                               <C>                             <C>

CASH FLOWS FROM OPERATING ACTIVITIES:
  NET LOSS                                                        $      (2)                      $    (33)

CHANGES IN OPERATING ASSETS AND LIABILITIES:
      DUE FROM SUBSIDIARIES                                            (440)                          (998)
     ACCRUED EXPENSES                                                   346                           793
                                                                  ---------                       --------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
  BEFORE REORGANIZATION ITEMS                                           (96)                          (238)
                                                                  ---------                       --------
OPERATING CASH FLOW FROM REORGANIZATION ITEMS -
   BANKRUPTCY RELATED PROFESSIONAL FEES PAID                             --                             --
                                                                  ---------                       --------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                     (96)                          (238)
                                                                  ---------                       --------

NET INCREASE (DECREASE) IN CASH DURING THE PERIOD                       (96)                          (238)

CASH BALANCE AT BEGINNING OF PERIOD                                      97                            239
                                                                  ---------                       --------
CASH BALANCE AT END OF PERIOD                                     $       1                       $      1
                                                                  =========                       ========
</TABLE>

                       See Notes to Financial Statements.


                                        4
<PAGE>

                       ACTRADE FINANCIAL TECHNOLOGIES LTD.
                    NOTES TO FINANCIAL STATEMENTS - UNAUDITED
                                 AUGUST 31, 2003
                             (DOLLARS IN THOUSANDS)

NOTE 1.  BASIS OF PRESENTATION

The accompanying unaudited financial statements of Actrade Financial
Technologies Ltd. have been prepared on a going concern basis, which
contemplates continuity of operations, realization of assets and liquidation of
liabilities in the ordinary course of business. These financial statements
include intercompany balances that would be eliminated, in accordance with
generally accepted accounting principles, when the results of Actrade Financial
Technologies Ltd. are consolidated with all of its wholly owned subsidiaries.

NOTE 2.  SIGNIFICANT ACCOUNTING POLICIES

Financial Reporting For Bankruptcy Proceedings - In connection with the
bankruptcy proceedings, the Company is required to report in accordance with the
American Institute of Certified Public Accountant's Statement of Position 90-7
"Financial Reporting by Entities in Reorganizations under the Bankruptcy Code"
(SOP 90-7"). SOP 90-7 requires, among other things, (i) that pre-petition
liabilities that are subject to compromise be segregated in the Company's
balance sheet as liabilities subject to compromise and (ii) the identification
of all transactions and events that are directly associated with the
reorganization of the Company in Statement of Operations.

NOTE 3.  PETITION FOR RELIEF UNDER CHAPTER 11

On December 12, 2002, Actrade Financial Technologies Ltd. (the "Debtor,"
"Actrade" or the "Company") filed a petition for relief under Chapter 11 of the
United States Bankruptcy Code in the United States Bankruptcy Court for the
Southern District of New York. Under Chapter 11, actions to enforce certain
claims against the Debtor in existence prior to the filing of the Chapter 11
petition are stayed while the Debtor continues business operations as a
debtor-in-possession. These claims are reflected in the August 31, 2003, balance
sheet as "liabilities subject to compromise." Additional claims (liabilities
subject to compromise) may arise subsequent to the filing date resulting from
rejection of executory contracts or leases, and from the determination by the
court (or agreed to by parties in interest) of allowed claims for contingencies
and other disputed amounts. Actions by creditors whose claims are secured
against the Debtor's assets ("Secured Claims") also are stayed, although the
holders of such claims have the right to move the court for relief from the
stay. Secured Claims are secured primarily by the liens on Debtor's Trade
Acceptance Drafts receivable.

The Debtor received approval from the Bankruptcy Court to pay or otherwise honor
certain of its prepetition obligations, including wages and other employee
benefits.


                                        5
<PAGE>

                       ACTRADE FINANCIAL TECHNOLOGIES LTD.
                    NOTES TO FINANCIAL STATEMENTS - UNAUDITED
                                 AUGUST 31, 2003
                             (DOLLARS IN THOUSANDS)


NOTE 4.  REORGANIZATION COSTS

Reorganization costs include professional fees and other related expenses
attributable to the filings.

NOTE 5.  INTERCOMPANY TRANSACTIONS

Intercompany balances would be eliminated, in accordance with generally accepted
accounting principles, when the results of Actrade Financial Technologies Ltd.
are consolidated with all of its wholly owned subsidiaries. The intercompany
balances that are included on the accompanying financial statements under the
caption of Due from Subsidiaries amounted to $18,940 at August 31, 2003.

NOTE 6.  SUPPLEMENTAL FINANCIAL INFORMATION

Actrade Financial Technologies Ltd. operates as a holding company. Almost all of
its operating expenses including professional fees and other related expenses
attributable to the reorganization filings are recognized and paid by its wholly
owned subsidiary, Actrade Capital, Inc., also a debtor-in-possession. Since
Actrade Financial Technologies Ltd. is legally liable for its share of
outstanding liabilities, Actrade Capital, Inc. charged back Actrade Financial
Technologies Ltd. through intercompany accounts for the outstanding liabilities
as of August 31, 2003. Actrade Financial Technologies Ltd. paid no professional
fees and other related expenses attributable to the reorganization during the
period from December 13, 2002 through August 31, 2003.

NOTE 7.  PRESS RELEASE DATED MARCH 26, 2003 ANNOUNCES
         ADDITIONAL DEVELOPMENTS

The Company's Board of Directors has determined to pursue a sale of the company
as a going concern, among other alternatives, to maximize value for all of the
Company's creditors and stockholders.

NOTE 8.  PRESS RELEASE DATED JUNE 10, 2003 ANNOUNCES
         ADDITIONAL DEVELOPMENTS

Actrade Financial Technologies, ltd on June 10, 2003 announced that , effective
immediately, Actrade and all of its subsidiaries will cease writing any new
business and will not issue new Trade Acceptance Drafts. Actrade also announced
that it will promptly seek to reduce operating expenses, while focusing
primarily on collecting the Company's outstanding TAD's receivable, and on the
sale process described below.


                                        6
<PAGE>

                       ACTRADE FINANCIAL TECHNOLOGIES LTD.
                    NOTES TO FINANCIAL STATEMENTS - UNAUDITED
                                 AUGUST 31, 2003
                             (DOLLARS IN THOUSANDS)


The Company also announced that, pursuant to its previously announced plan to
seek to maximize value for all of the Company's creditors and stockholders, it
is, with the assistance of its financial advisor, Anderson, Weinroth & Partners,
LLC, continuing to pursue a sale of the Company. Although the Company is engaged
in discussions with potential buyers, there can be no assurance that the Company
will consummate a sale transaction.

NOTE 9.  FORM 8K REPORT FILED WITH SECURITIES EXCHANGE
         COMMISSION ON AUGUST 27, 2003 (REGULATION FD
         DISCLOSURE)

Actrade Financial Technologies Ltd. (the "Company") has hired John Fioretti to
serve as the Company's Chief Restructuring Officer. As previously announced, the
Company has ceased writing business and will shortly be conducting an auction
sale of operating assets. Accordingly as the Company moves to a new phase, Mr.
Fioretti will replace the Company's Chief Executive Officer, Mr. Richard
McCormick, who will be leaving the Company and transitioning his
responsibilities to Mr. Fioretti.

NOTE 10. FORM 8K REPORT FILED WITH SECURITIES EXCHANGE
         COMMISSION ON SEPTEMBER 11, 2003 (OTHER EVENTS
         AND REGULATION FD DISCLOSURE)

On September 11, 2003, the United States Bankruptcy Court for the Southern
District of New York entered an order approving the motion of Actrade Financial
Technologies, LTD. and one of its domestic subsidiaries ("collectively, the
Company") under Section 363 of the U.S. Bankruptcy Code to allow the sale of
certain intellectual property assets of the Company, including the Company's
patent, patent applications and trademarks to The CIT Group/Commercial Services,
Inc. for $200,000.


                                        7
<PAGE>

                                                                       EXHIBIT 1



                       ACTRADE FINANCIAL TECHNOLOGIES LTD.
                             (DEBTOR-IN-POSSESSION)
                             STATEMENT OF OPERATIONS
                                 AUGUST 31, 2003
                             (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                                                                   TOTAL MONTHLY
                                                                                             INTERCOMPANY          DISBURSEMENTS
                                                                   TOTAL MONTHLY             DISBURSEMENTS           EXCLUDING
DEBTOR COMPANY                           CASE NUMBER               DISBURSEMENTS          INCLUDED IN TOTAL        INTERCOMAPNY
--------------                           -----------               -------------          -----------------        ------------
<S>                                      <C>                       <C>                    <C>                      <C>
Actrade Financial Technlogies Ltd.       02-16212 (ALG)            $    --                $    --                  $    --
                                                                   -------                -------                  -------
                                                                   $    --                $    --                  $    --
                                                                   =======                =======                  =======
</TABLE>


                                        8

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>4
<FILENAME>ex99-2form8k_091503.txt
<DESCRIPTION>EXHIBIT 99.2
<TEXT>

                                                                    EXHIBIT 99.2
                                                                    ------------



PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP
Jeffrey D. Saferstein (JS/5339)
Erica Weinberger (EW/1411)
1285 Avenue of the Americas
New York, New York 10019-6064
Telephone:  (212) 373-3000
Attorneys for Debtor in Possession

UNITED STATE BANKRUPTCY COURT
SOUTHERN DISTRICT OF NEW YORK
--------------------------------------------x
                                            :         Chapter 11
In re:                                      :         Case No. 02-16213 (ALG)
                                            :
ACTRADE CAPITAL, INC.                       :
                                            :
                                Debtor.     :
                                            :
--------------------------------------------x


                         MONTHLY OPERATING STATEMENT FOR
                  THE PERIOD AUGUST 1, 2003 TO AUGUST 31, 2003
                  --------------------------------------------

<PAGE>

UNITED STATE BANKRUPTCY COURT
SOUTHERN DISTRICT OF NEW YORK

                                              CHAPTER 11 CASE NO. 02-16213 (ALG)


                              ACTRADE CAPITAL, INC.
================================================================================
                                     DEBTOR


                         Monthly Operating Statement For
                  The Period August 1, 2003 to August 31, 2003


DEBTOR'S ADDRESS:
-----------------
Actrade Capital, Inc.
200 Cottontail Lane
Vantage Court South
Somerset, NJ 08873

                                        Monthly Disbursements:  $     1,224,000
                                                                ---------------

DEBTOR'S ATTORNEY:
------------------
Paul, Weiss, Rifkind, Wharton & Garrison LLP
1285 Avenue of the Americas
New York, NY 10019

                                        Monthly After Tax Income:$       35,000
                                                                 --------------

         The undersigned, having reviewed the attached report and being familiar
with the Debtor's financial affairs, verifies under the penalty of perjury, that
to the best of my knowledge, information and belief, the information contained
therein accurately reflects, on an unconsolidated basis, information contained
in the Debtor's books and records and public filings. As stated in previous
disclosures, no assurances can be given and no reliance should be made, on the
Debtor's books and records, and on the information contained in the Debtor's
public filings.

         The undersigned also verifies that, to the best of his knowledge, all
insurance policies, including workers compensation and disability insurance,
have been paid currently.



DATE:    September 15, 2003        By:  /s/ John Fioretti
                                        ---------------------------------------
                                        John Fioretti
                                        Chief Restructuring Officer
                                        Actrade Capital, Inc.


Indicate if this is an amended statement by checking here

                                        Amended Statement       [_]

<PAGE>

                              ACTRADE CAPITAL, INC.
                             (DEBTOR-IN-POSSESSION)
                                  BALANCE SHEET
                                 AUGUST 31, 2003
                             (DOLLARS IN THOUSANDS)



ASSETS

CURRENT ASSETS:
     Cash                                                       $ 17,329
     Other current assets                                            853
                                                                --------
         Total Current Assets                                     18,182


OTHER ASSETS                                                           9
                                                                --------

TOTAL ASSETS                                                    $ 18,190
                                                                ========

LIABILITIES AND STOCKHOLDERS' DEFICIT

LIABILITIES NOT SUBJECT TO COMPROMISE:
CURRENT LIABILITIES:
     Accounts payable                                              $ 731
     Accrued expenses                                                530
                                                                --------
         Total Current Liabilities                                 1,261
                                                                --------

DUE TO PARENT, SUBSIDIARIES AND AFFILIATES                        48,052

LIABILITIES SUBJECT TO COMPROMISE:
     Accounts payable                                                 54
     Accrued expenses                                                 15
                                                                --------
         Total Current Liabilities Subject to Compromise              69
                                                                --------
   Total Liabilities                                              49,382
                                                                --------
STOCKHOLDERS' DEFICIT:
     Common stock                                                     --
     Additional paid in capital                                       10
     Accumulated deficit                                         (31,202)
                                                                --------

         Total Stockholders' Deficit                             (31,192)
                                                                --------

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT                     $ 18,190
                                                                ========

                       See Notes to Financial Statements.


                                        2
<PAGE>

                              ACTRADE CAPITAL, INC.
                             (DEBTOR-IN-POSSESSION)
                             STATEMENT OF OPERATIONS
                             (DOLLARS IN THOUSANDS)


<TABLE>
<CAPTION>
                                                                                                  FOR THE PERIOD
                                                                                                 DECEMBER 13, 2002
                                                                    MONTH ENDED                       THROUGH
                                                                  AUGUST 31, 2003                 AUGUST 31, 2003
                                                                  ---------------                 ---------------
<S>                                                               <C>                             <C>
Revenue - Trade acceptance drafts                                 $       --                      $   1,022

Other Income - Recovery of Bad Debt                                      454                          2,137

Operating Expenses:
     General and administrative expenses                                 181                          4,917
     Bad debt                                                             --                          1,849
     Interest expense                                                     --                             10
                                                                  ----------                       --------
Total Operating Expenses                                                 181                          6,776
                                                                  ----------                       --------

Income (Loss) before reorganization items and
  income tax benefit                                                     273                         (3,617)
                                                                  ----------                       --------

Reorganization items:
     Professional fees                                                  (500)                        (4,730)
     Interest earned on accumulated cash resulting
       from Chapter 11 proceeding                                          5                             52

                                                                        (495)                        (4,678)
                                                                  ----------                       --------
Loss before (provision for income taxes) income tax benefit             (222)                        (8,295)

Income tax benefit                                                       257                         (2,333)
                                                                  ----------                       --------

Net Income (Loss)                                                 $       35                       $(10,628)
                                                                  ==========                       ========
</TABLE>

                       See Notes to Financial Statements.


                                        3
<PAGE>

                              ACTRADE CAPITAL, INC.
                             (DEBTOR-IN-POSSESSION)
                             STATEMENT OF CASH FLOWS
                             (DOLLARS IN THOUSANDS)


<TABLE>
<CAPTION>
                                                                                                  FOR THE PERIOD
                                                                                                 DECEMBER 13, 2002
                                                                    MONTH ENDED                       THROUGH
                                                                  AUGUST 31, 2003                 AUGUST 31, 2003
                                                                  ---------------                 ---------------
<S>                                                               <C>                             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net Income (Loss)                                               $       35                      $ (10,630)
  Adjustments to reconcile net loss to net cash provided by
     operating activities:
         Depreciation and amortization                                    --                            626
         Recovery of bad debt                                           (454)                        (2,137)
         Bad debt                                                         --                          1,849
         Deferred income                                                  --                           (224)
         Deferred income tax asset                                        --                          9,120

Changes in operating assets and liabilities:
       Trade acceptance drafts receivable                                454                          8,485
       Other current assets                                             (258)                          (525)
       Other assets                                                        1                             --
       Accounts payable                                                 (977)                           731
       Accrued expenses                                                1,063                          2,971
       Due to parent, subsidiaries and affiliates                        565                         (1,013)
       Income taxes payable                                               --                         (6,270)
                                                                  ----------                      ---------

Net cash provided by operating activities before
   Reorganization Items                                                  429                          2,983

Operating Cash Flow from Reorganization Items -
     Bankruptcy related professional fees paid                        (1,089)                        (3,147)
                                                                  ----------                      ---------

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                     (660)                          (164)
                                                                  ----------                      ---------

Net decrease in cash during the period                                  (660)                          (164)

Cash balance at beginning of period                                   17,989                         17,493
                                                                  ----------                      ---------

CASH BALANCE AT END OF PERIOD                                     $   17,329                      $  17,329
                                                                  ==========                      =========
</TABLE>

                       See Notes to Financial Statements.


                                        4
<PAGE>

                              ACTRADE CAPITAL, INC.
                    NOTES TO FINANCIAL STATEMENTS - UNAUDITED
                                 AUGUST 31, 2003
                             (DOLLARS IN THOUSANDS)

NOTE 1.  BASIS OF PRESENTATION

The accompanying unaudited financial statements of Actrade Capital, Inc. have
been prepared on a going concern basis, which contemplates continuity of
operations, realization of assets and liquidation of liabilities in the ordinary
course of business. These financial statements include intercompany balances
that would be eliminated, in accordance with generally accepted accounting
principles, when the results of Actrade Capital, Inc. are consolidated with its
parent and all of its wholly owned subsidiaries or affiliates.

NOTE 2.  SIGNIFICANT ACCOUNTING POLICIES

Financial Reporting For Bankruptcy Proceedings - In connection with the
bankruptcy proceedings, the Company is required to report in accordance with the
American Institute of Certified Public Accountant's Statement of Position 90-7
"Financial Reporting by Entities in Reorganizations under the Bankruptcy Code"
(SOP 90-7"). SOP 90-7 requires, among other things, (i) that pre-petition
liabilities that are subject to compromise be segregated in the Company's
balance sheet as liabilities subject to compromise and (ii) the identification
of all transactions and events that are directly associated with the
reorganization of the Company in Statement of Operations.

NOTE 3.  PETITION FOR RELIEF UNDER CHAPTER 11

On December 12, 2002, Actrade Capital, Inc. (the "Debtor"), filed a petition for
relief under Chapter 11 of the United States Bankruptcy Code in the United
States Bankruptcy Court for the Southern District of New York. Under Chapter 11,
actions to enforce certain claims against the Debtor in existence prior to the
filing of the Chapter 11 petition are stayed while the Debtor continues business
operations as a debtor-in-possession. These claims are reflected in the August
31, 2003, balance sheet as "liabilities subject to compromise." Additional
claims (liabilities subject to compromise) may arise subsequent to the filing
date resulting from rejection of executory contracts or leases, and from the
determination by the court (or agreed to by parties in interest) of allowed
claims for contingencies and other disputed amounts. Actions by creditors whose
claims are secured against the Debtor's assets ("Secured Claims") also are
stayed, although the holders of such claims have the right to move the court for
relief from the stay. Secured Claims are secured primarily by the liens on
Debtor's Trade Acceptance Drafts receivable.

The Debtor received approval from the Bankruptcy Court to pay or otherwise honor
certain of its prepetition obligations, including wages and other employee
benefits.


                                        5
<PAGE>

                              ACTRADE CAPITAL, INC.
                    NOTES TO FINANCIAL STATEMENTS - UNAUDITED
                                 AUGUST 31, 2003
                             (DOLLARS IN THOUSANDS)


NOTE 4.  REORGANIZATION COSTS

Reorganization costs include professional fees and other related expenses
attributable to the filings.

NOTE 5.  INTERCOMPANY TRANSACTIONS

Intercompany balances would be eliminated, in accordance with generally accepted
accounting principles, when the results of Actrade Capital, Inc. are
consolidated with its parent and all of its wholly owned subsidiaries or
affiliates. The intercompany balances that are included on the accompanying
financial statements under the caption of Due to Parent, Subsidiaries and
Affiliates amounted to $48,052 at August 31, 2003.

NOTE 6.  SUPPLEMENTAL FINANCIAL INFORMATION

Actrade Capital, Inc. is the operating entity, which recognized and paid all
operating expenses including professional fees and other related expenses
attributable to the reorganization filings for itself and its parent, Actrade
Financial Technologies Ltd. Actrade Capital, Inc. charged back to Actrade
Financial Technologies Ltd. through intercompany accounts for its share of
outstanding liabilities as of August 31, 2003 since Actrade Financial
Technologies Ltd is legally obligated for these outstanding liabilities. Actrade
Capital, Inc. paid approximately $3,147 for professional fees and other related
expenses attributable to the reorganization during the period from December 13,
2002 through August 31, 2003.

NOTE 7.  PRESS RELEASE DATED MARCH 26, 2003 ANNOUNCES ADDITIONAL DEVELOPMENTS

The Company's Board of Directors has determined to pursue a sale of the company
as a going concern, among other alternatives, to maximize value for all of the
Company's creditors and stockholders.

NOTE 8.  PRESS RELEASE DATED JUNE 10, 2003 ANNOUNCES
         ADDITIONAL DEVELOPMENTS

Actrade Financial Technologies, LTD ("Actrade" or the "Company") announced on
June 10, 2003 that, effective immediately, Actrade and all of its subsidiaries
will cease writing any new business and will not issue new Trade Acceptance
Drafts. Actrade also announced that it will promptly seek to reduce operating
expenses, while focusing


                                        6
<PAGE>

                              ACTRADE CAPITAL, INC.
                    NOTES TO FINANCIAL STATEMENTS - UNAUDITED
                                 AUGUST 31, 2003
                             (DOLLARS IN THOUSANDS)


NOTE 8.  PRESS RELEASE DATED JUNE 10, 2003 ANNOUNCES
         ADDITIONAL DEVELOPMENTS (Cont'd)

primarily on collecting the Company's outstanding TADs receivable, and on the
sale process described below.

The Company also announced that, pursuant to its previously announced plan to
seek to maximize value for all of the Company's creditors and stockholders, it
is, with the assistance of its financial advisor, Anderson, Weinroth & Partners,
LLC, continuing to pursue a sale of the Company. Although the Company is engaged
in discussions with potential buyers, there can be no assurance that the Company
will consummate a sale transaction.

NOTE 9.  REVALUATION OF DEFERRED TAX ASSET

As further discussed in notes 7 and 8 the Company has discontinued operations
and is pursuing a sale of the Company. Effective in the June period, the Company
determined that a valuation of the Deferred Tax Asset was necessary. As of
August 31, 2003 the asset is valued at $0. The valuation allowance of $7,504 was
necessary to reflect the realizable net value of taxes deferred as operations
were discontinued and the asset was unrealizable.

NOTE 10. FORM 8K REPORT FILED WITH SECURITIES EXCHANGE
         COMMISSION ON AUGUST 27, 2003 (REGULATION FD
         DISCLOSURE)

Actrade Financial Technologies, LTD., (the "Company") has hired John Fioretti to
serve as the Company's Chief Restructuring Officer. As previously announced the
Company has ceased writing business and will shortly be conducting an auction
sale of operating assets. Accordingly as the Company moves to a new phase, Mr.
Fioretti will replace the Company's Chief Executive Officer, Mr. Richard
McCormick, who will be leaving the company and transitioning his
responsibilities to Mr. Fioretti.

NOTE 11. FORM 8K REPORT FILED WITH SECURITIES AND EXCHANGE
         COMMISSION ON SEPTEMBER 11, 2003 (OTHER EVENTS AND
         REGULATION FD DISCLOSURE)

On September 11, 2003, the United States Bankruptcy Court for the Southern
District of New York entered an order approving the motion of Actrade Financial
Technologies Ltd. and the Debtor (collectively, the "Company") under Section 363
of the U.S.


                                        7
<PAGE>

                              ACTRADE CAPITAL, INC.
                    NOTES TO FINANCIAL STATEMENTS - UNAUDITED
                                 AUGUST 31, 2003
                             (DOLLARS IN THOUSANDS)


NOTE 11. FORM 8K REPORT FILED WITH SECURITIES AND EXCHANGE
         COMMISSION ON SEPTEMBER 11, 2003 OTHER EVENTS AND
         REGULATION FD DISCLOSURE. (Cont'd)

Bankruptcy Code to allow the sale of certain intellectual property assets of the
Company, including the Company's patent, patent applications and trademarks to
The CIT Group/ Commercial Services, Inc. for $200,000.


                                        8
<PAGE>

                                                                       EXHIBIT 1



                              ACTRADE CAPITAL, INC.
                             (DEBTOR-IN-POSSESSION)
                        SUMMARY OF MONTHLY DISBURSEMENTS
                                 AUGUST 31, 2003
                             (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                                                                  TOTAL MONTHLY
                                                                                          INTERCOMPANY            DISBURSEMENTS
                                                             TOTAL MONTHLY                DISBURSEMENTS              EXCLUDING
     DEBTOR COMPANY          CASE NUMBER                     DISBURSEMENTS              INCLUDED IN TOTAL          INTERCOMAPNY
     --------------          -----------                     -------------              -----------------          ------------
<S>                          <C>                             <C>                        <C>                        <C>
Actrade Capital, Inc.        02-16213 (ALG)                  $ 1,224                    $     --                   $ 1,224
                                                             -------                    --------                   -------
                                                             $ 1,224                    $     --                   $ 1,224
                                                             =======                    ========                   =======
</TABLE>


                                        9

</TEXT>
</DOCUMENT>
</SUBMISSION>
