Business Finance Success Stories: Line of Credit
For over 35 years, ScotPac has been working with small and medium sized enterprises (SMEs) to help fuel their success.
Our team of lending specialists ensure fast and flexible funding solutions are available for every business.
As the largest non-bank business lender in Australia, we have worked with many SMEs, including in the retail industry, and enabled a number of business finance success stories, particularly when it comes to Line of Credit facilities.
Here are five case studies to help you better understand how a ScotPac Line of Credit can help retail businesses grow.
Line of Credit Case Study #1: Top Shelf Finance Solution
Our first case study revolves around a business in the transport, postal and warehousing industry.
What was the objective?
This business, due to the industry they operate in, had several different clients and each client was offered different payment terms on their invoices.
While this ensured positive relationships with their patrons, it also meant that when a significant amount of money was due but unpaid, cash flow would be tight.
In turn this posed a problem as there was not always sufficient cash flow to invest in assets for expansion and growth.
How did a Line of Credit help?
A business line of credit was the ideal finance solution. Because working capital funding wasn’t necessary all the time, the business could draw on the cash they needed when they needed.
In this case, the $75,000 line of credit facility was used to purchase equipment for use in extra shelving installation. This significantly increased their warehouse capacity and allowed them to scale operations for greater long-term success.
Line of Credit Case Study #2: Crown Jewel Finance Solution
In this second case study, a retail jewellery business used a line of credit to great success.
What was the objective?
As a jewellery business, this company experienced significant fluctuations in demand for their products due to seasonal changes.
This placed some pressure on their cash flow management as they needed to purchase additional stock ahead of certain seasons to capitalise on the increase in potential sales.
How did a Line of Credit help?
Approved for a business line of credit with $100,000, this jewellery retailer was able to purchase additional stock ahead of the Diwali festival.
The tailored line of credit facility helped provide the much-needed flexibility to quickly access working capital when demand surged without having to incur costs on a lump sum business loan.
The fast access to cash allowed timely stock replenishment without compromising their regular cash flow and ensured they were able to maximise sales even during a peak demand period.
Line of Credit Case Study #3: A Finance Solution of Fresh Air
For our third case study, we will explore how an HVAC provider benefited from a business line of credit from ScotPac.
What was the objective?
As an HVAC installation and services provider, this business needed a smarter way to manage their debt.
Previously, they had borrowed money from a high-cost lender. This meant significant expense in interest payments and limited cash flow flexibility.
The business needed a finance solution that was better tailored to their cash flow needs without incurring unnecessary costs.
How did a Line of Credit help?
A business line of credit with a $175,000 limit allowed the HVAC retailer to refinance their high-cost loan.
By doing so, they managed to successfully achieve two things:
1. Free up working capital
2. Reduce interest costs
The Line of Credit gave them more control over managing their debt. By only having to draw the funds they needed when they needed it, they could better utilise their cash flow to focus on growing their business.
It also meant they could avoid being locked into rigid, high-cost repayment schedules that restricted their ability to expand.
Line of Credit Case Study #4: The Supportive Finance Solution
For our next case study, let’s look at a slightly different industry: disability support services.
What was the objective?
This disability support services provider and National Disability Insurance Scheme (NDIS) provider, needed to recruit and onboard additional staff.
The recent increase in clients and clients’ demand for services put a strain on the business as it lacked the sufficient capital to maintain high-quality care services whilst expanding its staff.
How did a Line of Credit help?
With a Line of Credit approved up to $100,000 this finance facility provided the flexibility needed. The support provider could scale the workforce quickly when service needs demanded it by drawing on the necessary funds.
This meant that investing in additional staff didn’t negatively impact cash flow and thereby interrupt support for their existing clients. With access to funds on demand, there was no pressure of fixed repayments either, further affecting cash flow management.
Does your business need to grow but struggle to find the working capital to fund it? Explore how a line of credit facility with ScotPac can help.
Line of Credit Case Study #5: Building the Right Finance Solution
In our last business finance success story, we will look at an architectural design and consultancy business.
What was the objective?
This successful business, due to the industry, was faced with the challenge of maintaining operational stability despite the fluctuating cash inflow throughout the varied project timelines.
The purpose of the line of credit was to help better manage the business’s ability to meet expenses and overheads, without putting further strain by taking on high-cost debt.
How did a Line of Credit help?
The business line of credit provided the crucial financial flexibility to stabilise access to working capital and bridge potential gaps in cash flow.
Despite the unpredictable nature of payment schedules on architectural projects, the $200,000 limit line of credit facility meant that the business could cover overhead costs, fully resource its team, and ensure no operation disruptions that would compromise its ability to meet client deadlines.
Would you like to become our next successful Line of Credit case study? Contact ScotPac today
For over 35 years, we have been supporting small and medium sized businesses to access the funding they need to fuel sustainable success.
All of our business finance success stories start with a conversation between our clients and our team of lending specialists. So, reach out to your nearest ScotPac office to explore how a customised line of credit facility can turn your cash flow challenge into a successful case study.