Updated on 12th August 2026

Australian small and medium sized enterprises are increasingly turning to non-banking institutions for working capital solutions. SMEs involved in trade, whether importing or exporting goods, are similarly turning to non-bank Trade Finance providers like ScotPac to unlock faster funding, simpler approvals, and integrated Invoice Finance solutions. Bypassing the rigid red tape and skipping the slow turnaround times of traditional banks, Australian SMEs are fuelling their growth without unnecessary obstacles.

Explore ScotPac’s Trade Finance solutions today.

Why are more SMEs turning to ScotPac for non-bank Trade Finance?

Australian small and medium-sized businesses engaged in importing and exporting are facing a funding gap that traditional banks’ loans and finance facilities were never really designed to close. The time between a business needing to pay overseas suppliers for goods and inventory and waiting on customer payments coming in can cause disruption to cash flow, operation and growth.

And the solution is increasingly not another meeting with your traditional bank.

Non-bank Trade Finance in Australia, provided by finance providers like ScotPac, is becoming the reliable, smarter alternative for solving real-world trade cycles.

  • Faster approvals
  • Flexible structures
  • Scalable solutions

Why are Australian SMEs struggling to get Trade Finance approved by their bank?

The simple answer is that traditional banks weren’t designed for the complexity of international trade, and their working capital solutions were not meant for many of the situations faced by Australian SMEs.

For example, Australian banks typically assess Trade Finance applications through a commercial lending lens. This focused on items like balance sheets, property security, and a company’s credit history. For SMEs, these criteria can be more of an obstacle than enabler.

In today’s world, the realities of importing goods from overseas or exporting to international markets, makes this traditional form of Trade Finance unsuitable. Why?

Common pain points SME importers and exporters experience include:

Slow approval timelines

It can often take from 6 to 12 weeks to obtain approval. This can be long after supplier payment deadlines have passed.

Heavy security requirements

Traditional banks more often than not require property or fixed assets as collateral.

Inflexible credit limits

A funding facility that is unable to scale during peak seasons, for large one-off orders or as your business grows can be limited in usability.

Solo financial products

Most traditional lending banks do not integrate their Trade Finance offerings with other complementary working capital solutions, such as Invoice Finance.

At ScotPac, we offer Trade Finance and Invoice Finance together. Why? Because your Trade Finance facility funds the purchase of goods from overseas suppliers, while your Invoice Finance facility converts the resulting customer invoices into immediate cash for ongoing operations and growth. Customised and implemented together, both solutions work to close the entire cash flow gap in your trade cycle, from purchase order through to payment receipt.

Unsuitable for trade cycles

The limited understanding of trade cycles means that the credit assessors are often unfamiliar with letter of credit (LC) structures, import duty timing, or export receivables – all of which are critical SMEs engaging in trade.

Why does ScotPac require Invoice Finance alongside every Trade Finance facility?

With ScotPac, we don’t offer a Trade Finance facility without an accompanying Invoice Finance facility.

This is one of the most important structural and functional differences between ScotPac’s working capital model and what you’ll find elsewhere i.e., from traditional banks. So, it’s worth understanding why.

What is the difference between Trade Finance and Invoice Finance? 

Trade Finance

Trade Finance provides funding for the purchase side of your business cycle. It helps provide the working capital to make payment to suppliers ahead of receiving the goods.

Invoice Finance

Invoice Finance funds the sales side. It ensures you can access cash owed to you in advance ahead of customers settling their accounts.

Without both working together, Australian SMEs engaging in trade are only solving half the problem.

Here’s what the two forms of business finance look like alongside one another:

  1. Your SME is approved for a Trade Finance facility with ScotPac.
  2. You receive the working capital needed to pay overseas suppliers.
  3. Your order of stock or goods arrive.
  4. You provide goods to your customers and invoice accordingly.
  5. Your approved Invoice Finance facility provides an advance of up to 85% of that invoice value within 24 to 48 hours.
  6. Your customer pays your invoice and you receive the balance of funds, less fees.

In short, this is a closed-loop working capital model. It means your Trade Finance liability is always backed by real debtor assets. It’s a win-win: You reduce the level of risk taken on by our team here at ScotPac and you ensure your facility can grow in line with your sales ledger.

How does non-bank Trade Finance work differently for Australian importers and exporters?

Non-bank Trade Finance providers like ScotPac structure their working capital solutions specifically around the cash flow and trade cycles of import/export businesses.

Here’s what sets the non-bank and banking offerings apart:

Feature
Traditional Bank
ScotPac (Non-Bank)

Approval time 

6 to 12 weeks 

Often 24 to 48 hours 

Security 

Fixed assets such as property 

Secured and non-secured options e.g., debtor ledger and invoices 

Complementary with Invoice Finance 

Not always 

Built into the offering 

Flexibility/scalability 

Low

High

Accessible for SMEs 

Not always

Yes

What can Australian SMEs use non-bank Trade Finance to fund?

As mentioned above, ScotPac’s Trade Finance solution – especially in conjunction with Invoice Finance – is designed to cover the full import-export trade cycle.

  • Import Finance – fund your payments to suppliers, letters of credit, or import duty costs
  • Export Finance – bridge the cash flow gap caused by shipping goods today but receiving payment from overseas buyers tomorrow
  • Purchase Order Finance – use funding to confirm orders when you need to manufacture or procure stock but before invoicing takes place
  • Stock and Inventory Finance – cover the cost of goods in transit or held in a warehouse ahead of sale to customers

Find out more about how Trade Finance can help fuel your business’s success today.

Ready to fund your next import or export deal without the bank?

Did you know that ScotPac is the largest non-banking lender in Australia and New Zealand? We support over 9300 businesses, fund over $26.3 billion in invoices annually and have over 35 years of experience.

So, if your SME is actively importing or exporting, give the ScotPac team a call to find out more about how an integrated Trade and Invoice Finance solution could be the working capital model you need.

FAQs About Non-Bank Trade Finance in Australia

What is the minimum turnover required to access ScotPac's Trade Finance facility?

ScotPac works with SMEs across a range of sizes and across a range of industries. While eligibility criteria are less rigid than with traditional banks, businesses tend to need an established trading history and an active debtor ledger. For custom advice, speak with a ScotPac lending specialist today about your eligibility. 

Can I get Trade Finance in Australia without having property for security?

Yes, you can. ScotPac’s tTrade Finance facilities are structured around your debtor ledger and invoice assets rather than fixed asset security, like real estate. This makes the working capital solution more accessible to new and fast-growing businesses that may not have significant property to offer as collateral. 

How long does it take to get a Trade Finance facility approved with ScotPac?

Approval timelines on Trade Finance facilities with ScotPac are significantly faster than traditional banks. Many clients move from initial enquiry to facility approval within a matter of days. This can vary depending on the complexity of your business and the type of documentation provided. 

What's the difference between a letter of credit and a ScotPac Trade Finance facility?

A letter of credit (LC) is a bank-issued payment guarantee to an overseas supplier.  

ScotPac’s Trade Finance facility is a funding facility that can support LC-based transactions but does a lot more as well: Such as direct supplier payments, telegraphic transfers, and import duty financing. ScotPac’s Trade Finance comes with more flexibility and faster approval than a bank-issued LC. 

Do I need both Trade Finance and Invoice Finance, or can I just have one?

At ScotPac, Trade Finance and Invoice Finance facilities are structured together. This combined model approach ensures that the goods you fund with Trade Finance generate invoices that are immediately converted into working capital through Invoice Finance. In other words, our comprehensive solution ensures a sustainable cash flow cycle rather than a one-sided funding arrangement. 

Is non-bank Trade Finance suitable for both importers and exporters?

Yes. ScotPac supports both Import Finance (i.e., those funding supplier payments overseas) and Export Finance (such as those bridging the gap between shipping and receiving international customer payments).  

What types of goods or industries are eligible for Trade Finance through ScotPac?

ScotPac works across a broad range of industries. Typically these include wholesale, manufacturing, retail, food and beverage, technology, and industrial goods. However, the key eligibility factor is not so much your type of goods or industry but rather that your business generates invoices from creditworthy customers.