Build deeper client relationships

Equally important is the strength of the relationships non-bank lenders enjoy with their introducers, in particular finance brokers, as they are often the initiator of the packages put together in conjunction with the non-banks to satisfy clients’ needs that have not been met by the majors or the regional banks.

At Scottish Pacific we understand that introducing a client to a potential lender or a new type of finance is a big decision. Brokers need to feel comfortable that their most valuable asset – their client – is going to be well looked after.

As a non-bank lender we are able to offer a more intimate service proposition. Our model works around our relationship managers having smaller numbers of clients in their portfolios while also having the power to make most day-to-day lending decisions locally, without the input of a centralised credit department.

This combination enables us to respond quickly to clients’ changing needs, which means that they can take opportunities as they arise, in the knowledge that the required funds will be available.

But the service proposition or the customer experience as it is now more frequently referred to, is only part of the equation. There has to be flexibility in the range of funding solutions on offer. Working capital is the lifeblood of every trading business: buying stock, hiring staff or managing the cashflow implications of a growing receivables ledger during periods of expansion.

At Scottish Pacific we understand that a one-size-fits all approach no longer cuts it. Business owners need flexibility in their borrowing arrangements and more options to choose from, which is why we have introduced a range of trade finance solutions to complement the suite of debtor finance facilities we have been delivering to Australia- and New Zealand-based business owners for more than 25 years.

In the past two years we have added import finance, export finance and Tradeline to our overall proposition. Most recently we have introduced selective or single invoice finance, as it is often referred to, for those businesses that may only have seasonal or short-term needs and prefer not to pledge their entire turnover for a designated minimum period.

Just prior to the end of the financial year Scottish Pacific became the first non-bank to be approved as a funding partner by the federal government’s export credit agency, Efic.

One of the ways in which Efic supports Australia’s export industry is by guaranteeing commercial finance facilities taken out by Australian companies operating in the export supply chain, helping them to expand their businesses overseas and to source opportunities in emerging and frontier markets.

As the CEO of Scottish Pacific I was delighted to see that these new initiatives, in conjunction with the hard work put in by all our staff in looking after clients and developing strong relationships with our referral partners, enabled us to retain the best non-bank cash flow lender award in April, voted for by readers of this magazine. Thank you for that recognition. We understand that brokers and their clients have choices and your ongoing support is never taken for granted.

Peter Langham is CEO of Scottish Pacific Business Finance.