Is cash flow making peak season
harder for your retail business?
Retail businesses often need to pay for stock, wages and supplier costs before the sales revenue comes in. That timing gap can make it harder to restock, take on new orders or prepare for busy periods. ScotPac’s Line of Credit gives retail businesses access to flexible working capital to help bridge those gaps.
The Solution:
Business Line of Credit for Retail
Apply in minutes
Complete a simple online application and receive a credit decision in as little as 24 hours.
Draw when needed
Once approved, draw from your facility when your business needs extra cash flow - whether that’s to cover payroll or take up a supplier bulk buy discount.
Only pay for what you use
Pay interest only on the funds you draw, not your full approved facility limit.Why choose ScotPac’s Line of Credit for retail businesses
Retail cash flow can change quickly. Stock, wages and supplier payments often need to be covered before sales revenue comes in, which can make a traditional fixed term loan feel too rigid. ScotPac’s Line of Credit is designed to give retail businesses more flexibility. Instead of taking one lump sum upfront, you can draw funds when you need them, repay as revenue comes in and redraw again as your working capital needs change.
How do I access funds?
Draw funds when your retail business needs them, up to your approved limit.
Funds are usually provided as one lump sum upfront.
What is it best suited for?
Ongoing retail cash flow needs like stock, wages, supplier payments and seasonal demand.
Larger one-off purchases or planned investments.
How does interest work?
Pay interest only on the amount you draw, not your full approved facility limit.
Interest usually applies to the full loan amount from the start.
Can it help during seasonal peaks?
Draw before busy periods to stock up, cover extra costs, then repay as sales revenue comes in.
Repayments are usually fixed, even if your cash flow changes throughout the year.
Can I keep using the facility?
Draw, repay and redraw as your stock, wages and cash flow needs change.
Additional funding usually requires a new application or refinance.
Award-Winning Business Finance
For over 35 years, ScotPac has helped Australian businesses access funding that works around their cash flow needs. As Australia’s largest non-bank business lender, we understand the pressure retail businesses can face when stock, wages and supplier costs need to be paid before sales revenue comes in. ScotPac’s Line of Credit gives you flexible access to working capital when you need it.
Case Study
Helping a jewellery retailer prepare for peak seasonal demand
The Challenge
A retail jewellery business needed extra working capital ahead of the Diwali festival, one of its busiest trading periods. The business wanted to purchase additional stock while demand was high but needed timely access to funds without tying up cash unnecessarily. Without enough stock on hand, there was a risk of missing sales during a critical seasonal window.
The Solution
ScotPac provided a $100,000 Line of Credit, giving the business flexible access to working capital when it was needed. The facility allowed the retailer to purchase additional stock quickly ahead of the Diwali trading period, while only drawing the funds required. This meant the business could respond to seasonal demand without taking on a fixed lump-sum loan or paying interest on unused funds.
The Outcome
With ScotPac’s Line of Credit in place, the business was able to prepare for the seasonal surge and make the most of increased customer demand. The facility gave the retailer more control over cash flow, helping it stock up at the right time while keeping working capital available for other business needs throughout the year.
Frequently Asked Questions
What is a business line of credit?
ScotPac’s Line of Credit gives your retail business access to a revolving funding limit.
You can draw funds when you need extra working capital, then access those funds again as you repay them. Unlike a traditional term loan, you only pay interest on the amount you draw – not your full approved facility limit.
How does a business line of credit help retail businesses?
A business Line of Credit can help retail businesses manage the gap between paying suppliers and receiving sales revenue. You can draw funds when you need extra working capital – whether that’s to buy stock, cover wages, pay freight or manage overheads before a busy period. As revenue comes in, you can repay the facility and redraw again when needed. This gives your retail business more control over cash flow, without taking on a fixed lump-sum loan.
What kind of retail businesses is ScotPac’s Line of Credit best suited to?
ScotPac’s Line of Credit can suit a range of retail businesses – from boutique fashion and homewares stores to larger retail, wholesale and importing operations. It may be a good fit if your business needs to buy stock before sales revenue comes in, manage seasonal peaks or cover gaps between outgoing costs and incoming payments. The revolving facility helps smooth those timing gaps, giving you more flexibility to stock up, pay suppliers and keep cash flow steady.
What are the eligibility requirements for a ScotPac business line of credit?
To be eligible for a Line of Credit, your business generally needs at least $50,000 in total monthly sales and at least 12 months of trading history with consistent sales.
Applicants must be 18 or older and be an Australian citizen or permanent resident.
You’ll also need to provide supporting documents, including:
- at least six months of business bank statements
- photo ID for all directors and borrowers
- a completed application form
- additional documents for secured facilities, where required
How much can my retail business borrow with a ScotPac line of credit?
For Line of Credit, ScotPac offers facility limits up to $500,000, subject to eligibility. As a general guide, ScotPac can fund up to 150% of your average monthly sales. For example, if your business averages $100,000 in monthly sales, you may be eligible for a facility of up to $150,000. The minimum amount for additional drawdowns is $5,000.
What fees apply to a ScotPac business line of credit?
A one-off establishment fee of 3% of the facility limit applies at approval. There is also an ongoing monthly administration fee of $85. Interest is only charged on the amount you draw, not your full facility limit. There are no penalties for early payout, and your monthly statement is available through the customer portal at no extra cost. Repayment schedules are structured in line with your facility terms.
How fast can I access funds after approval?
Once your Line of Credit facility is approved and set up, funds can be deposited into your account in as little as 24 hours. In some cases, same-day funding may also be available. This means your retail business can respond quickly to stock opportunities, cover payroll or meet supplier deadlines when extra cash flow is needed.
How long does the line of credit facility last?
ScotPac’s Line of Credit gives your business access to a two-year revolving facility, with the option to draw funds as needed during that period. After the revolving period, there may be an amortisation period of up to two years, giving your business more time to repay the facility. You may also have the option to refinance into a new Line of Credit facility at any time during the term, subject to credit approval.
Do I need property security for a line of credit?
Security requirements vary depending on your business profile, facility size, and credit assessment. ScotPac’s lending specialists will review your application and explain what security may be required before you proceed. Where suitable, this may include business assets and trading performance rather than relying only on residential property as security.
Can a business line of credit limit increase as my retail business grows?
Your Line of Credit limit does not increase automatically. Any increase is subject to reassessment and credit approval. If your retail business grows and your working capital needs change, you can apply to refinance into a new Line of Credit facility at any time during the term. This may allow you to access a higher facility limit based on your current trading performance and reset the two-year draw period. ScotPac’s lending specialists will review your current position and work with you to structure a facility that suits where your business is now.
Is a line of credit suitable for seasonal retail businesses?
Yes. A revolving Line of Credit can be useful for retail businesses with seasonal cash flow changes, such as Christmas, EOFY or back-to-school periods. You can draw funds ahead of a busy season or large stock order, then repay as sales revenue comes in. This gives your business access to working capital when it is needed, without paying interest on unused funds during quieter periods. One detail to keep in mind: if your balance reaches zero and stays at zero for three months, the facility may become closed down, and a new application may be required to access funds again.
Can I use a ScotPac line of credit to purchase inventory?
Yes. You can use ScotPac’s Line of Credit for a range of business purposes, including purchasing retail stock, covering wages, paying freight and logistics costs, investing in store equipment or taking advantage of supplier bulk order discounts.