ScotPac helped Ideal Electrical overcome the cash flow challenges that emerged after it was acquired. Traditional banks were reluctant to lend support because the new US owner had no operating history in New Zealand. ScotPac stepped in quickly with an invoice finance solution tailored to Ideal Electrical’s unique needs. It allows the electrical supplier to better manage its cash flow, satisfy its new owners’ requirements and plan for future growth, all without sacrificing control of its customer relationships.

Founded in 1936, leading electrical retailer, Ideal Electrical, sells electrical supplies to electricians through its 38 branches across New Zealand. It was previously owned by one of the largest electrical retailers in the world, which provided cash flow support as needed.

In February 2025, a US-based private equity firm acquired Ideal Electrical, but because the new multinational owner had no previous operating history in New Zealand, traditional banks were reluctant to provide funding.

Having previously enjoyed 40% share of the electrical market; the new leadership were looking to return the company to growth. As part of the transition away from its previous owner, Ideal Electrical needed funding to establish its independent financial capability, strengthen its working capital and fund future growth.

Adding to the pressure, Ideal Electrical also needed cash flow to replace stock provided by its previous owner who was due to terminate supply once divested from Ideal Electrical. Time was of the essence.

Recognising the need for a flexible and responsive partner, Ideal Electrical’s advisor, Deloitte, recommended contacting ScotPac. The non-bank lender designed an invoice finance facility that allows Ideal Electrical to unlock capital tied up in unpaid invoices while retaining control of its debtor relationships and invoicing processes.

By running several processes in parallel to speed up the process, ScotPac set up a 15-month minimum term facility at competitive interest rates within four weeks.

Chris Dwyer, the company’s Financial Controller, says he values “ScotPac’s speed and flexibility in setting up the facility, their understanding of our business model and their ability to provide a partnership with strong personal relationships (benefits often not available from traditional banks). With a secure finance solution in place, the business can now focus on growth and opportunities ahead of us. We are now able to explore new product lines and move the business forward, which is exciting.”

Dwyer adds: “ScotPac provides a more personal finance experience. You know who your account lead is and there’s always someone at the end of the phone.

From the perspective of Ideal Electrical’s customers, the transition was seamless. The only visible change was a new bank account number for payments.

ScotPac’s solution enabled Ideal Electrical to:

• Maintain consistent cash flow and meet its financial obligations

• Provide peace of mind to its US directors and shareholders that they would not have to inject further funding into the New Zealand company

• Retain control over debtor management

• Replace key lines supplied by its previous owners

• Refocus on growth opportunities with confidence.