Line of Credit

A Line of Credit is a flexible funding solution that allows you to access funds up to a pre-approved limit, whenever you need them. You only pay interest on the amount you draw down*, not the entire credit limit. 

*Minimum withdrawal amount of $5,000 applies for additional draw downs  

A Line of Credit gives you access to funds as needed, offering greater flexibility and control over your cash flow. 

You can use a Line of Credit for any worthwhile business purpose, such as bridging short-term cash flow gaps, purchasing inventory, investing in new equipment, or taking advantage of unexpected business opportunities. 

Our Line of Credit ranges from $50,000 to $500,000. As a general rule we can fund up to 150% of your average monthly sales. For example, if you average $100,000 in sales per month, you could borrow up to $150,000. 

To qualify for a Line of Credit, you need to have a minimum trading length of 12 months, and demonstrate a minimum turnover of $50,000 per month in total sales. 

Once approved, funds can be transferred in as little as 24 hours. In some cases, same day funding may also be available. 

When you submit your application through our easy to use online portal, you will need to provide: 

• Six months of business bank statements. 

• A completed application form – this can be done here. 

• Photo ID for all directors and borrowers. 

• For secured loans, additional documentation related to your collateral may also be required. 

Interest rates are determined by several factors, including the business’s risk profile, and the loan amount. Businesses with stronger asset bases, solid credit histories, and secured loans typically benefit from lower interest rates.

There is a once off establishment fee of 3% of the facility limit and a monthly administration fee of $85 for our Line of Credit. ScotPac offers complete transparency, with a set weekly repayment amount covering principal and interest.  

You can access your monthly statement at no additional cost through your customer portal, helping you stay on top of your loan and manage your budget. If you have any questions about fees or charges, our team is here to assist. 

ScotPac’s Line of Credit lets you borrow what you need for up to 2 years, repaying and re-drawing as needed. After 2 years, your redraw option will no longer be available, however, you can continue your repayment for an additional 2 years.  You can also apply to refinance your existing facility into a new Line of Credit at any time throughout the entire period, with the option to increase your facility limit and extend your term.  

No, ScotPac doesn’t charge penalties for early payouts. 

If your owing balance is $0, your line of credit will stay active for 3 months. After a 3 month period, you will need to reapply for your Line of Credit. 

No, you can’t apply for loans to start a business. Our Line of Credit is designed for businesses that have been trading for at least 12 months and can demonstrate consistent sales. However, if your business is already operating and you’re looking to purchase an additional franchise or open a new location, we’d be happy to assist. 

If you’re ready to start our quick application process, click here. 

If you’d like to speak to one of our lending specialists for more information, please call 1300 660 681.