Why is fast access to rapid funding critical?

For a small and medium sized enterprise (SME) in Australia facing unexpected expenses, seasonal lows in demand or other cash flow management related challenges, access to quick cash is a must.

Whilst a business line of credit in Australia a great way to secure the funds you need as an SME, does it offer sufficiently rapid funding when you need it?

The answer, in short, is yes.

In this article, we will underline not just how rapid funding through a line of credit facility can be with a lender like ScotPac but unpack why this is the case and how its speed can best be used to fuel your business’s success.

To find out more about a business line of credit solution, click here.

How fast can you access funds with a Line of Credit?

In general, how fast you can access funds with a Line of Credit will depend on your lender.

Traditional bank lenders may be slower in approval and in terms of access to credit, but for many non-bank lenders, such as ScotPac, your facility application can be approved within just 24 hours and quick cash accessible shortly after, likely in one business day.

Your future drawdowns, within your approved limit, offer quick cash and flexible access to ensure you can meet your ongoing cash-flow needs.

What are the benefits of rapid funding with a Line of Credit? 
  • A line of credit is one of the quickest forms of accessing funding once approved
  • You can draw on funds on demand, when you need them, without re-applications
  • Re-draw the funds you need within your pre-approved limit
  • Only pay interest on the amount you draw not the full limit
  • You can re-pay the loan flexibly allowing quick access again when you need it

How quickly is a Line of Credit application approved?

When it comes to a business line of credit, it is not just the access to funding that is quick but also the application and approval process.

Thanks to ScotPac’s completely online application form and streamlined processes, you can apply for your finance solution in just 5 minutes.

This means, for a ScotPac line of credit application to be approved and funding provided, you could be looking at as short as:

  • 5 minutes for the online application and digital uploading of relevant documents
  • 24 hours for eligible businesses to receive a credit decision
  • 1 business day for funds to be provided once approved
What can cause the application process to be slowed?

The truth is that most delays in accessing a Line of Credit occur before the approval process, or during it, rather than after.

To avoid the delay and access to funding as soon as possible, it is important to note the common causes of delay:

  • Incomplete financial and business information
  • Missing bank statements
  • Inconsistent financial information
  • Complex business structures requiring extra verification
  • Applications outside of business hours
  • Applications submitted just before public holidays.
  • Unusual trading patterns that may require more explanation.​

How can you ensure your application process is as fast as possible?

  • Make sure you have at least 12 months of trading history documentation and bank statements before beginning your application
  • Make sure you have all your business’s information before starting your application
  • Have your own, and any other borrowers/owners’, ID
  • Time your application during business hours and not just before a public holiday
  • Familiarise yourself with ScotPac’s general eligibility criteria and make sure you meet the requirements

How has ScotPac streamlined the service?

The team here at ScotPac has leveraged digital technology to reduce the amount of time between your application and your ability to access cash.

  • Automated business information verification
  • Online application provides our credit assessors easy access to your trading history, turnover/revenue and eligibility
  • A digital platform allows for a Line of Credit contract to be provided electronically
  • Easy activation of your facility ensures you can access rapid funding as fast as possible

How fast can I access funds once the Line of Credit facility is open?

Once set up, your Line of Credit provides access to quick cash when you need it.

No more applications are needed. With the limit already approved, there is no need for additional credit checks every time you access funds within your limit.​

All you need to is:

  • Log in to our client platform
  • Request a drawdown from your Line of Credit
  • Receive the funds transferred to your account
What could cause a potential delay in access to rapid funding?
  • Some funds may be subject to standard payment cut-off times
  • Some providers may only process draw-downs during business hours
  • Transfers typically follow the processing of your bank

Is a ScotPac Line of Credit fast enough for your business?

Every SME is unique, and your business’s objectives and cash flow needs will be equally unique.

If you need access to quick cash to cover gaps in cash flow, a Line of Credit could offer the fast and flexible access you need.

Consider a Line of Credit if:

  • You have slow-paying customers causing ongoing cash flow gaps
  • You experience seasonal or cyclical sales fluctuations causing ongoing cash flow gaps
  • You need ongoing access to funds and not a one-off loan

Do you need access to quick cash? Contact ScotPac today!

Whether you are unsure whether a Line of Credit is fast enough for your cash flow management needs or want to know how we can tailor your financial solution, speak to a ScotPac lending specialist today.

We have been providing business solutions to SMEs across Australia for over 35 years and can help you understand your business’s eligibility and needs to make the right, informed financial decision.

To get started with a business line of credit in Australia, contact ScotPac today.

Frequently Asked Questions about Rapid Funding with a Line of Credit

How fast is a Line of Credit approved with ScotPac?

If your business is eligible, you can receive a credit decision in as little as 24 hours from applying and access funds in their account within a business day of approval. 

Note: This is subject to your providing the required information and normal banking cut-offs.

How fast can you draw funds with a Line of Credit facility?

Once your Line of Credit is approved and active, you can draw money using the online portal within the same business day in most cases.​ 

Is a Line of Credit faster than a traditional bank loan?

In most instances, yes. A Line of Credit with ScotPac is designed to minimise paperwork and ensure faster approvals than traditional term loans that come with more red tape and stricter criteria.  

  • Banks often require more financial documentation. 
  • They may require collateral to secure the loan and thus require additional documentation and longer approval time frames.  

Do you need to apply each time you draw funds?

No. A Line of Credit is a revolving facility. This means you can draw, repay and then redraw up to your approved limit. 

You only pay interest on the funds you draw down. 

Can you access funds urgently?

Once approved, same-day drawdowns with your Line of Credit are possible. 

Remember that the turnaround here is subject to cut-off times and your bank’s processing times.   

If you do not yet have a Line of Credit facility set up, you can complete the application in as little as 5 minutes and receive a credit decision in as little as 24 hours.