July 29, 2020
Brokers have new ways to help their clients during these uncertain times, with initiatives Australia’s largest non-bank SME lender, Scottish Pacific, has put in place to make it easier for small and medium businesses to take on new facilities.
ScotPac’s initiatives include no lock-in contracts, 24-hour approvals and greater flexibility around the size of funding. These initiatives are in place for the remainder of 2020.
The aim is to make it easier for brokers’ SME clients to access working capital, knowing that they will not be locked in should circumstances change and they no longer need funding.
Head of Client Acquisition, Wayne Smith, said ScotPac recognised that COVID-19 challenges had made the past six months very challenging for many brokers and business owners.
“Many business owners are under a tremendous amount of stress. They understand they need funds to keep the business going – but may be unsure of where to go for funding,” Mr Smith said.
“Brokers tell us common barriers for their clients are fear of trying something they haven’t tried before, and fear of being locked into long-term contracts when there is so much economic uncertainty – our initiatives remove these barriers.
“We can help them in this uncertain climate, by offering quicker approvals and increased flexibility that makes it easy for SMEs to walk away if their business situation changes.”
With JobKeeper due to be phased out between September and March, ScotPac is ready to provide working capital where it’s needed. ScotPac will support SMEs and their brokers with funding that doesn’t risk the family home, using finance that is secured by assets already in the business.
“This is a way for ScotPac to show additional support for our valuable broker network, and to encourage brokers and their clients to learn more about why Invoice Finance is a funding option that works in every business cycle – including the current difficult conditions,” he said.
- Come and go facilities
- No lock in contracts (no penalty to terminate with 7 days’ notice for new clients funded in 2020)
- New Selective Invoice Finance clients can choose any number of debtors to fund against
- Same day approvals
- Access to funds within 24 hours
- Client’s accounting package can connect with ScotPac for quick, easy access to funds
“It’s a smart way to access finance. We’ve got specialists in Asset Finance, as well as Trade and Debtor Finance, to help brokers’ clients unlock the value tied up in existing balance sheet assets. This helps to free up working capital with no property security required,” Mr Smith said.
Debtor Finance (Invoice Finance) uses the invoices a business has issued as security. The business gets fast access to cash and this style of funding doesn’t require the family home as security.
“Business owners have the option to try something new with the ability to change their mind, but we’re confident they will try then stay,” Mr Smith said.
“Our clients have typically grown at three times GDP and tend to stick with us for a long time because this style of funding really helps them succeed.
“Brokers are such an important part of our business, and our initiatives aim to make it easier for brokers and their clients to succeed,” he said.
Brokers with clients looking for a smarter way to fund their business can contact 1300 145 344 to ask questions, discuss solutions and find out more about ScotPac’s broker referral commission initiatives.