ScotPac demonstrated its commitment to supporting Australian businesses by providing a fast, flexible financing solution for a leading ASX-listed manufacturer and distributor facing financial challenges. This commercially flexible asset-backed loan, leveraged the company’s assets, addressed the limitations of traditional bank financing and provided essential working capital to drive operational improvements. 

This established ASX-listed manufacturer and distributor operates across multiple sites in Australia and New Zealand, specialising in plastic-based solutions. The company had recently experienced a decline in profitability, leading to a loss-making position and limited access to additional funding from its banking syndicate. 

Following a period of declining profitability, the company faced an urgent need for additional financing to restructure its manufacturing operations and acquire essential equipment.

However, its financial performance posed a significant challenge in securing traditional bank funding, which rely on stringent financial covenants, which the business was not achieving. 

Recognising the company’s strong asset base, ScotPac developed a flexible asset-backed loan solution that differed from traditional bank offerings.

Leveraging its expertise in innovative financial structures, ScotPac implemented a $50 million Invoice Finance facility, within a timeframe of four weeks.

This solution unlocked much-needed working capital by enabling the company to monetise its outstanding invoices, facilitating essential operational improvements and equipment acquisitions. 

ScotPac provided the company with funding certainty at a pivotal time by delivering a flexible and tailored finance package not available from its existing banking partners, all without financial covenants.

This commercially flexible and timely funding solution facilitated crucial operational restructures and equipment upgrades, paving the way for a return to profitability. ScotPac’s solution exemplifies its commitment to supporting Australian businesses through innovative and flexible funding solutions, even in challenging circumstances. 

• ScotPac’s commercially flexible Invoice Finance facility offered essential working capital without restrictive financial covenants, providing a superior alternative to traditional bank financing within a four-week timeframe. 

• The solution facilitated critical operational improvements and equipment acquisitions. 

• ScotPac’s commitment to Australian industry was evident in its support for a company facing financial hurdles.