ScotPac launches $100m SME fund to help small businesses bounce back

Jon Sutton, Chief Executive Officer at ScotPac

A $100m working capital fund was launched by leading non-bank business lender ScotPac, to help Australian and New Zealand businesses get back on their feet as the economy reopens.

The ScotPac SME Bounce Back Fund will allow business owners to access up to $1 million in capital with the first three months of the fund being offered interest-free.

ScotPac’s Chief Executive Officer, Jon Sutton said that the initiative will facilitate operation on a “first-come” basis until April 2022 or until the funds are fully dispersed.

This initiative will give up to 2000 businesses fast access to additional funds and caps a year in which ScotPac has helped more businesses access funding than ever before.

The minimum facility size is $50k, with SMEs able to access facilities of up to $1 million.

“With the first three months interest-free, SME owners can afford to invest in their business while their revenue recovers back to normal levels,” Mr. Sutton said.

“This initial interest cost is waived for the business owner and borne by ScotPac, as opposed to being deferred and compounded like the loan repayment holidays offered by some banks.

“With the economy opening up and businesses looking to bounce back to growth, the Fund allows ScotPac to continue the support we’ve shown for SMEs throughout the pandemic.”

SMEs face a 3 month lag between opening or expanding a business and seeing money coming in, the ScotPac SME Bounce Back Fund means businesses can get fast access to funds with limited cost in that crucial first three months, covering any income gap.

Help for business owners

The Fund will support SMEs’ working capital needs through trade and invoice finance.

“Beyond the Fund, ScotPac’s offering is broadening with a range of new products in the pipeline for 2022, so that more SMEs can find the type of funding they need with us.”

Mr. Sutton furthermore urged brokers and other advisors working with small business clients to talk to them about applying for ScotPac SME Bounce Back Fund support.

“Brokers, accountants and trusted SME advisors are crucial in making business owners aware of this new funding option with upfront savings of three months interest-free.”

“As businesses evolve, ScotPac has the breadth and depth for SMEs to find the right solution without going through the hassle of having to deal with another finance partner.”

ScotPac’s support for SMEs during the pandemic

ScotPac initiatives for SMEs during the pandemic have included the following.

  • Allowing clients payment deferrals if they were impacted by Covid-19
  • Setting up a Covid-19 information hub outlining small business information about ATO deferments, rent reductions, JobKeeper and government grants on offer
  • Launching Cash Connector with 24-hour approvals and no lock-in contracts to give business owners quick and easy access to funds
  • Extending to clients the Employee Assistance Program of access to video or phone counseling sessions paid by ScotPac if clients and their families needed support

“As Australia and New Zealand’s largest non-bank specialist SME financier, ScotPac has the breadth of solutions and the depth of funding, along with the ability to say ‘yes’ quickly, that will help business owners get the funds they need to return to growth,” Mr. Sutton said.

“We’ve been supporting the small business sector for more than three decades.”