Rollout follows well-received pilot program launched this year
Australian small and medium-sized enterprises, as well as mid-tier corporates, now have access to a new funding option following the introduction of ScotPac’s Asset Based Finance solution.
The facility enables eligible businesses to secure substantial capital without the constraints of conventional bank covenants.
The product operates as a single, revolving working capital facility, with security drawn from a combination of debtors, inventory, property, plant, and equipment.
It is structured to provide ongoing liquidity, aiming to reduce the administrative burden often associated with bank lending.
ScotPac’s Asset Based Finance was rolled out after a pilot program launched early this year, which reportedly generated strong interest and positive feedback from a variety of businesses.
Key features of the facility include a single monthly review, the ability to combine multiple asset classes into one security pool, and technology-driven processes for faster approvals and monitoring. The terms are designed to be less restrictive than those typically imposed by banks, with minimal covenants and streamlined compliance requirements.
“This facility enables established businesses to unlock the value of their balance sheets to obtain the funding required for growth,” said Jon Sutton (pictured top), chief executive of ScotPac. “For example, for a manufacturer needing rapid expansion capital, or a distributor bridging inventory cycles, our Asset Based Finance could quickly transform dormant assets into liquidity.
“Unlike bank loans that are often burdened by tight covenants, the pathway to liquidity using ScotPac’s Asset Based Finance matches the speed and flexibility commercial clients expect, even when property equity isn’t available.”
The product is positioned for use in a range of scenarios, such as working capital needs, mergers and acquisitions, capital raisings, and market expansion. ScotPac said its team will work with commercial finance brokers, advisers, accountants, and clients across industries to tailor the facility to specific requirements.
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