<SUBMISSION>
<ACCESSION-NUMBER>0000950142-03-001825
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>3
<PERIOD>20031015
<ITEMS>7
<ITEMS>9
<FILING-DATE>20031015
<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>03942038
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>200 COTTONTAIL LANE
<STREET2>VANTAGE COURT SOUTH
<CITY>SOMERSET
<STATE>NJ
<ZIP>08873
<PHONE>7328683100
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>200 COTTONTAIL LANE
<STREET2>VANTAGE COURT SOUTH
<CITY>SOMERSET
<STATE>NJ
<ZIP>08873
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>ACTRADE INTERNATIONAL LTD
<DATE-CHANGED>19930518
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form8k_101503.txt
<DESCRIPTION>CURRENT REPORT
<TEXT>

    As filed with the Securities and Exchange Commission on October 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): October 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 File           (IRS Employer
       incorporation)                   Number)              Identification No.)


200 COTTONTAIL LANE, VANTAGE COURT SOUTH, SOMERSET, NJ            08873
------------------------------------------------------            -----
(Address of principal executive offices)                        (Zip Code)


       Registrant's telephone number, including area code: (732) 868-3100
                                                          -----------------


                   7 PENN PLAZA, SUITE 422, NEW YORK, NY 10001
                   -------------------------------------------
          (Former name or former address, if changed since last report)

<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 September 1, 2003 through
                                       September 30, 2003

                  99.2                 Actrade Capital Inc. Monthly Operating
                                       Statement for the period September 1,
                                       2003 through September 30, 2003

ITEM 9.

REGULATION FD DISCLOSURE.

         On October 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 September
1, 2003 through September 30, 2003 (together, the "Operating Reports") with the
United States Bankruptcy Court for the Southern District of New York (the
"Bankruptcy Court"). 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, March 31,
2003 or September 30, 2003 or filed with the SEC its Quarterly Report on Form
10-Q for the quarters ended September 30, 2002, December 31, 2002, March 31,
2003 or September 30, 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 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; additional facts found by the Company in connection with the issues
that are the subject of an internal evaluation; uncertainties regarding the
Company's Chapter 11 bankruptcy process, including whether or not the chapter 11
plan recently filed by the Company and Capital will be accepted by the creditors
and equity holders of the Company and Capital or approved by the Bankruptcy
Court; uncertainties regarding the Company's ability to collect on all its

<PAGE>

                                                                               4


outstanding collection matters; 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.



                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

<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: October 15, 2003

<PAGE>

                                                                               6


                                  EXHIBIT INDEX


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

    99.1              Actrade Financial Technologies Ltd. Monthly Operating
                      Statement for the period September 1, 2003 through
                      September 30, 2003

    99.2              Actrade Capital Inc. Monthly Operating Statement for the
                      period September 1, 2003 through September 30, 2003


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>3
<FILENAME>ex99_1form8k101503.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 SEPTEMBER 1, 2003 TO SEPTEMBER 30, 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 September 1, 2003 to September 30, 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: $ (7,000)
                                                                      --------


         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,
workers compensation and short-term disability insurance policies, have been
paid currently.



DATE:  October 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
                               SEPTEMBER 30, 2003
                             (DOLLARS IN THOUSANDS)



ASSETS

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

DUE FROM SUBSIDIARIES, NET                                               18,420

INVESTMENTS IN SUBSIDIARIES                                                 320
                                                                       --------

TOTAL ASSETS                                                           $ 18,774
                                                                       ========

LIABILITIES AND STOCKHOLDERS' EQUITY
     Accrued expenses                                                  $    788
                                                                       --------

         Total Current Liabilities                                          788
Liabilities Subject to Compromise:
     Accrued expenses                                                       303
                                                                       --------
TOTAL LIABILITIES                                                         1,091
                                                                       --------

STOCKHOLDERS' EQUITY

     Common stock, $0.0001 par value; authorized 100,000,000
       shares, issued and outstanding 11,849,490 shares at
       September 30, 2003                                                     1

     Additional paid in capital                                          58,102
     Accumulated deficit                                                 (1,217)

     Treasury stock at cost;  1,336,678 shares at
       September 30, 2003                                               (39,203)
                                                                       --------

     Total Stockholders' Equity                                          17,683
                                                                       --------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                             $ 18,774
                                                                       ========



                       See Notes to Financial Statemenmts


                                       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
                                                                      SEPTEMBER 30, 2003              SEPTEMBER 30, 2003
                                                                      ------------------              ------------------
<S>                                                                   <C>                             <C>
Revenue                                                                      $   --                          $  --

Operating Expenses:
     General and administrative expenses                                          7                             40
                                                                             ------                          -----

Total Operating Expenses                                                          7                             40
                                                                             ------                          -----

Loss before reorganization items and income tax benefit                          (7)                           (40)

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


Net loss                                                                     $   (7)                         $ (40)
                                                                             ======                          =====
</TABLE>



                       See Notes to Financial Statemenmts


                                       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
                                                                                 SEPTEMBER 30, 2003          SEPTEMBER 30, 2003
                                                                                 ------------------          ------------------
<S>                                                                              <C>                         <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  NET LOSS                                                                            $    (7)                    $   (41)

CHANGES IN OPERATING ASSETS AND LIABILITIES:
      DUE FROM SUBSIDIARIES                                                               520                        (478)
     ACCRUED EXPENSES                                                                    (512)                        281
                                                                                       ------                     -------

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES BEFORE REORGANIZATION ITEMS             1                        (238)
                                                                                       ------                     -------

OPERATING CASH FLOW FROM REORGANIZATION ITEMS -
   BANKRUPTCY RELATED PROFESSIONAL FEES PAID                                               --                          --
                                                                                       ------                     -------

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                                         1                        (238)
                                                                                       ------                     -------

NET INCREASE (DECREASE) IN CASH DURING THE PERIOD                                           1                        (238)
                                                                                       ------                     -------

CASH BALANCE AT BEGINNING OF PERIOD                                                        --                         239
                                                                                       ------                     -------

CASH BALANCE AT END OF PERIOD                                                               1                           1
                                                                                       ======                     =======
</TABLE>



                       See Notes to Financial Statemenmts


                                       4
<PAGE>

                       ACTRADE FINANCIAL TECHNOLOGIES LTD.
                    NOTES TO FINANCIAL STATEMENTS - UNAUDITED
                               SEPTEMBER 30, 2003
                             (DOLLARS IN THOUSANDS)


NOTE 1.    BASIS OF PRESENTATION

The accompanying unaudited financial statements of Actrade Financial
Technologies Ltd. (the "Company") 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 the Company
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, 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 (the "Bankruptcy Court"). 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
September 30, 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.

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
                               SEPTEMBER 30, 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 the Company are consolidated with all
of its wholly owned subsidiaries. The net intercompany balances that are
included on the accompanying financial statements under the caption of Due from
Subsidiaries amounted to $18,420 at September 30, 2003.

NOTE 6.    SUPPLEMENTAL FINANCIAL INFORMATION

The Company 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 the Company is legally
liable for its share of outstanding liabilities, Actrade Capital, Inc. charged
back the Company through intercompany accounts for the outstanding liabilities
as of September 30, 2003. The Company paid no professional fees and other
related expenses attributable to the reorganization during the period from
December 13, 2002 through September 30, 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

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


                                       6

<PAGE>

                       ACTRADE FINANCIAL TECHNOLOGIES LTD.
                    NOTES TO FINANCIAL STATEMENTS - UNAUDITED
                               SEPTEMBER 30, 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 AND EXCHANGE COMMISSION ON
           AUGUST 27, 2003 (REGULATION FD DISCLOSURE)

The Company hired John Fioretti to serve as the Company's Chief Restructuring
Officer effective as of August 18, 2003 and he replaced the Company's Chief
Executive Officer, Mr. Richard McCormick.


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

On September 11, 2003, the Bankruptcy Court entered an order approving the
motion of the Company and Actrade Capital under Section 363 of the U.S.
Bankruptcy Code to allow the sale of certain of their intellectual property
assets, including their patents, patent applications and trademarks to The CIT
Group/Commercial Services, Inc. for $200.

NOTE 11.   FORM 8K REPORT FILED WITH SECURITIES AND EXCHANGE COMMISSION ON
           SEPTEMBER 26, 2003 (OTHER EVENTS REGULATION FD DISCLOSURE)

On September 25, 2003, the Company and Actrade Capital, Inc., filed with the
Bankruptcy Court a joint chapter 11 plan and related disclosure statement that
provides for a distribution of their assets to their creditors and shareholders.
No assurance can be given that the chapter 11 plan will be accepted by the
creditors or equity holders of the Company and Actrade Capital or approved by
the Bankruptcy Court.


                                       7
<PAGE>

                    ACTRADE FINANCIAL TECHNOLOGIES LTD.
                           (DEBTOR-IN-POSSESSION)
                          STATEMENT OF OPERATIONS
                             SEPTEMBER 30, 2003
                           (DOLLARS IN THOUSANDS)


<TABLE>
<CAPTION>
                                                                                                                TOTAL MONTHLY
                                                                                          INTERCOMPANY          DISBURSEMENTS
                                                                  TOTAL MONTHLY           DISBURSEMENTS           EXCLUDING
DEBTOR COMPANY                             CASE NUMBER            DISBURSEMENTS        INCLUDED IN TOTAL         INTERCOMPANY
--------------                             -----------            -------------        -----------------         ------------
<S>                                       <C>                     <C>                  <C>                      <C>

Actrade Financial Technlogies Ltd.        02-16212 (ALG)             $    --                 $   --                  $   --
                                                                     -------                 ------                  ------

                                                                     $    --                 $   --                  $   --
                                                                     =======                 ======                  ======
</TABLE>





                                     8

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>4
<FILENAME>ex99_2form8k101503.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 SEPTEMBER 1, 2003 TO SEPTEMBER 30, 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 September 1, 2003 to September 30, 2003


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

                                          Monthly Disbursements:    $    800,000
                                                                    ------------

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

                                          Monthly After Tax Income: $ 13,094,000
                                                                    ------------

         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,
workers compensation and short-term disability insurance policies, have been
paid currently.



DATE:  October 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
                               SEPTEMBER 30, 2003
                             (DOLLARS IN THOUSANDS)


ASSETS

CURRENT ASSETS:

     Cash                                                              $ 29,650

     Other current assets                                                 1,179
                                                                       --------

         Total Current Assets                                            30,829


OTHER ASSETS                                                                 10
                                                                       --------

TOTAL ASSETS                                                           $ 30,838
                                                                       ========

LIABILITIES AND STOCKHOLDERS' DEFICIT

LIABILITIES NOT SUBJECT TO COMPROMISE:

CURRENT LIABILITIES:

     Accounts payable                                                  $    884

     Accrued expenses                                                       196
                                                                       --------

         Total Current Liabilities                                        1,080
                                                                       --------

DUE TO PARENT, SUBSIDIARIES AND AFFILIATES, NET                          47,532

LIABILITIES SUBJECT TO COMPROMISE:

     Accounts payable                                                        54

     Accrued expenses                                                       270
                                                                       --------

         Total Current Liabilities Subject to Compromise                    324
                                                                       --------

   Total Liabilities                                                     48,936
                                                                       --------

STOCKHOLDERS' DEFICIT:

     Common stock                                                            --

     Additional paid in capital                                              10

     Accumulated deficit                                                (18,108)
                                                                       --------

         Total Stockholders' Deficit                                    (18,098)
                                                                       --------

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT                            $ 30,838
                                                                       ========


                       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
                                                                        SEPTEMBER 30, 2003         SEPTEMBER 30, 2003
                                                                        ------------------         ------------------
<S>                                                                     <C>                        <C>
Revenue - Trade acceptance drafts                                            $    200                     $  1,222
                                                                             --------                     --------

Other Income - Recovery of Bad Debt                                            13,020                       15,157

Operating Expenses:

     General and administrative expenses                                          107                        5,024

     Bad debt                                                                      --                        1,849

     Interest expense                                                              16                           26
                                                                             --------                     --------

Total Operating Expenses                                                          123                        6,899
                                                                             --------                     --------

Income (Loss) before reorganization items and income tax benefit               13,097                        9,480
                                                                             --------                     --------

Reorganization items:

     Professional fees                                                           (339)                      (5,069)

     Interest earned on accumulated cash resulting
       from Chapter 11 proceeding                                                  11                           63
                                                                             --------                     --------

                                                                                 (328)                      (5,006)
                                                                             --------                     --------

Loss before (provision for income taxes) income tax benefit                    12,769                        4,474

Income tax benefit                                                                325                       (2,008)
                                                                             --------                     --------

Net Income (Loss)                                                            $ 13,094                     $  2,466
                                                                             ========                     ========
</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
                                                                        SEPTEMBER 30, 2003         SEPTEMBER 30, 2003
                                                                        ------------------         ------------------
<S>                                                                     <C>                        <C>
CASH FLOWS FROM OPERATING ACTIVITIES:

  NET INCOME                                                                 $ 13,094                  $  2,464

  ADJUSTMENTS TO RECONCILE NET LOSS TO NET CASH
     PROVIDED BY OPERATING ACTIVITIES:

         DEPRECIATION AND AMORTIZATION                                             --                       626

         RECOVERY OF BAD DEBT                                                 (13,020)                  (15,157)

         BAD DEBT                                                                  --                     1,849

         DEFERRED INCOME                                                          270                        46

         DEFERRED INCOME TAX ASSET                                                 --                     9,120

CHANGES IN OPERATING ASSETS AND LIABILITIES:

       TRADE ACCEPTANCE DRAFTS RECEIVABLE                                      13,020                    21,505

       OTHER CURRENT ASSETS                                                      (326)                     (851)

     OTHER ASSETS                                                                  (1)                       (1)

       ACCOUNTS PAYABLE                                                           153                       884

       ACCRUED EXPENSES                                                           344                     3,315

       DUE TO PARENT, SUBSIDIARIES AND AFFILIATES                                (520)                   (1,533)

       INCOME TAXES PAYABLE                                                        --                    (6,270)
                                                                             --------                  --------

NET CASH PROVIDED BY OPERATING ACTIVITIES BEFORE
   REORGANIZATION ITEMS                                                        13,014                    15,997

OPERATING CASH FLOW FROM REORGANIZATION ITEMS -
     BANKRUPTCY RELATED PROFESSIONAL FEES PAID                                   (693)                   (3,840)
                                                                             --------                  --------

NET CASH PROVIDED BY OPERATING ACTIVITIES                                      12,321                    12,157
                                                                             --------                  --------

NET INCREASE IN CASH DURING THE PERIOD                                         12,321                    12,157

CASH BALANCE AT BEGINNING OF PERIOD                                            17,329                    17,493
                                                                             --------                  --------

CASH BALANCE AT END OF PERIOD                                                $ 29,650                  $ 29,650
                                                                             ========                  ========
</TABLE>


                       See Notes to Financial Statements


                                       4
<PAGE>


                              ACTRADE CAPITAL, INC.
                    NOTES TO FINANCIAL STATEMENTS - UNAUDITED
                               SEPTEMBER 30, 2003
                             (DOLLARS IN THOUSANDS)


NOTE 1.    BASIS OF PRESENTATION

The accompanying unaudited financial statements of Actrade Capital, Inc. (the
"Company") 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 the Company 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, 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 (the "Bankruptcy Court"). Under Chapter 11,
actions to enforce certain claims against the Company in existence prior to the
filing of the Chapter 11 petition are stayed while the Company continues
business operations as a debtor-in-possession. These claims are reflected in the
September 30, 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.

The Company 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
                               SEPTEMBER 30, 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 the Company are consolidated with its
parent and all of its wholly owned subsidiaries or affiliates. The net
intercompany balances that are included on the accompanying financial statements
under the caption of Due to Parent, Subsidiaries and Affiliates amounted to
$47,532 at September 30, 2003.

NOTE 6.    SUPPLEMENTAL FINANCIAL INFORMATION

The Company 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. ("AFTL"). The Company charged back to AFTL through
intercompany accounts for its share of outstanding liabilities as of September
30, 2003 since AFTL is legally obligated for these outstanding liabilities. The
Company paid approximately $3,828 for professional fees and other related
expenses attributable to the reorganization during the period from December 13,
2002 through September 30, 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

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


                                       6
<PAGE>

                              ACTRADE CAPITAL, INC.
                    NOTES TO FINANCIAL STATEMENTS - UNAUDITED
                               SEPTEMBER 30, 2003
                             (DOLLARS IN THOUSANDS)


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

AFTL also announced that, pursuant to its previously announced plan to seek to
maximize value for all of AFTL creditors and stockholders, it is, with the
assistance of its financial advisor, Anderson, Weinroth & Partners, LLC,
continuing to pursue a sale of AFTL. Although AFTL is engaged in discussions
with potential buyers, there can be no assurance that AFTL 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
September 30, 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 AND EXCHANGE COMMISSION ON
           AUGUST 27, 2003 (REGULATION FD DISCLOSURE)

The Company hired John Fioretti to serve as its Chief Restructuring Officer
effective as of August 18, 2003 and he has replaced AFTL's Chief Executive
Officer, Mr. Richard McCormick.

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 Bankruptcy Court entered an order approving the
motion of the Company and AFTL under Section 363 of the U.S. Bankruptcy Code to
allow the sale of certain of their intellectual property assets, including their
patents, patent applications and trademarks to The CIT Group/ Commercial
Services, Inc. for $200.


                                       7
<PAGE>

                              ACTRADE CAPITAL, INC.
                    NOTES TO FINANCIAL STATEMENTS - UNAUDITED
                               SEPTEMBER 30, 2003
                             (DOLLARS IN THOUSANDS)


NOTE 12.   FORM 8K REPORT FILED WITH SECURITIES AND EXCHANGE COMMISSION ON
           SEPTEMBER 23, 2003 (OTHER EVENTS REGULATION FD DISCLOSURE)

The Company received a one-time cash payment of $12,984 in settlement of certain
TAD's and bills of exchange that were previously reserved. The $12,984 is
reflected as a recovery of bad debt during the month ended September 30, 2003.

NOTE 13.   FORM 8K REPORT FILED WITH SECURITIES AND EXCHANGE COMMISSION ON
           SEPTEMBER 26, 2003 (OTHER EVENTS REGULATION FD DISCLOSURE)

On September 25, 2003, the Company and AFTL filed with the Bankruptcy Court a
joint chapter 11 plan and related disclosure statement that provides for the
distribution of their assets to their creditors and shareholders. No assurance
can be given that the chapter 11 plan will be accepted by the creditors or
equity holders of the Company and AFTL or approved by the Bankruptcy Court.



                                       8
<PAGE>

                                                                       EXHIBIT 1
                                                                       ---------


                              ACTRADE CAPITAL, INC.
                             (DEBTOR-IN-POSSESSION)
                        SUMMARY OF MONTHLY DISBURSEMENTS
                               SEPTEMBER 30, 2003
                             (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>
                                                                                                           TOTAL MONTHLY
                                                                                   INTERCOMPANY            DISBURSEMENTS
                                                        TOTAL MONTHLY              DISBURSEMENTS              EXCLUDING
DEBTOR COMPANY                CASE NUMBER               DISBURSEMENTS            INCLUDED IN TOTAL          INTERCOMPANY
--------------                -----------               -------------            -----------------          ------------
<S>                          <C>                        <C>                      <C>                        <C>
Actrade Capital, Inc.        02-16213 (ALG)                 $ 800                      $   -                     $ 800
                                                            -----                      -----                     -----

                                                            $ 800                      $   -                     $ 800
                                                            =====                      =====                     =====
</TABLE>




                                       9

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