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The non-bank lender has launched a new line of credit product for small businesses.
ScotPac has launched Cashline, a new line of credit solution for small- to medium-sized enterprises (SMEs) that provides cash to the business when it needs.
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Cashline provides fixed-limit credit of $50,000–$250,000 over a minimum period of 12 months and does not require borrowers to make principal repayments. The line of credit is secured against business assets, allowing customers to access capital without property security.
Businesses need to have a cloud-based accounting package such as MYOB, QuickBooks, or Xero with connected bank accounts to access the product.
The company has said it can approve applications within 24 hours with SMEs receiving funds within a further 24 hours.
The chief executive of ScotPac, Jon Sutton, said that Cashline would help SMEs “maximise their cash flow”.
He stated: “ScotPac understands that not every business owner can or wants to use their family home as security for a business loan. That is why we take a different approach.
“We look at the potential of the businesses we support, rather than the owner’s property assets. That gives SMEs the financial freedom to grow without traditional constraints.”
The product offering came after online small-business lender OnDeck Australia surveyed 500 businesses and found that 80 per cent of SMEs were confident in their ability to meet financial obligations in 2024.
Further, the report revealed that 75 per cent of SMEs were confident regarding the stability and health of their business, with 34 per cent of SMEs saying their business health was ‘excellent’ or ‘very good’.
However, 24 per cent said that the stability and health of their business were ‘below average’.
[Related: OnDeck reports over 30% increase in loan approvals]
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