ScotPac has today announced the launch of the $100 million ScotPac SME Bounce Back Fund. The Fund is a new source of working capital for Australian and New Zealand SMEs as they rebuild their businesses after the disruption of COVID-19.
The initiative will give up to 2,000 businesses fast access to additional funds to secure supply chains, facilitate growth, and ease cashflow pressures.
The ScotPac SME Bounce Back Fund provides access to working capital through trade finance and invoice finance. The amounts available range from $50,000 to $1 million and can be accessed by existing ScotPac customers and the wider SME community.
To further support struggling SMEs, ScotPac is offering an up-front saving, with the first three months of the term provided interest-free. On $1 million, this represents an extra $17,000 in a business owner’s pocket.
The launch of the ScotPac Fund is particularly timely, with the loan writing period for the Commonwealth government’s SME Recovery Loan Scheme closing on 31 December 2021.
ScotPac CEO Jon Sutton says that the initiative will operate on a ‘first-come’ basis for businesses meeting the lending criteria until April 2022 or until funds are dispersed.
ScotPac has invested heavily in technology over recent months, and Mr Sutton is confident that the company can provide a quick turn-around of loans despite the expected high level of interest in the Fund.
Support when it’s needed most
“With the first three months interest-free, SME owners can afford to invest in their business while their revenue recovers back to normal levels,” explains Mr Sutton.
“This initial interest cost is being completely waived for the business owner and borne by ScotPac, as opposed to being deferred and compounded like the loan repayment holidays offered by some banks.
“With the economy opening up and business owners looking to bounce back to growth, the Fund allows ScotPac to continue the support we’ve shown for SMEs throughout the pandemic.”
Mr Sutton says that SMEs generally face a three-month lag between opening or expanding a business and seeing money coming in. The ScotPac SME Bounce Back Fund means businesses can get fast access to funds with limited cost in that crucial first three months, covering any income gap.
“As Australia and New Zealand’s largest non-bank specialist SME financier, ScotPac has the breadth of solutions and the depth of funding, along with the ability to say ‘yes’ quickly, that will help business owners get the funds they need to return to growth,” Mr Sutton explains.
Funding critical to growth
“Beyond the Fund, ScotPac’s offering is broadening with a range of new products in the pipeline for 2022, so that more SMEs can find the type of funding they need with us,” Mr Sutton continues.
The announcement of the Fund caps a year in which ScotPac has helped more businesses access funding than ever before.
Some of the ScotPac initiatives that have helped its clients navigate the pandemic include:
- Allowing clients payment deferrals if they were impacted by Covid-19
- Setting up a Covid-19 information hub outlining small business information about ATO deferments, rent reductions, JobKeeper and government grants on offer
- Launching Cash Connector with 24-hour approvals and no lock-in contracts to give business owners quick and easy access to funds
- Extending to clients the Employee Assistance Program of access to video or phone counselling sessions, paid by ScotPac, if clients and their immediate families needed support
To find out more about the ScotPac SME Bounce Back Fund, including terms and conditions, call 1300 177 485, or visit this link.
Read more: Over 50 % Aussie SMEs forecasting revenue growth in H2 2021
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