The non-bank has launched the working capital solution following a successful pilot program earlier this year.
SME lender ScotPac has launched a working capital solution that allows corporate entities to borrow against multiple asset classes, including debtors, inventory, property, plant, and equipment.
The non-bank lender said its new Asset Based Finance product has been designed to cater for established small and medium-sized enterprises (SMEs) and mid-tier corporate businesses that need a pathway to ongoing liquidity beyond traditional lending solutions.
Qualifying businesses can receive one facility with a single monthly review and can blend asset classes into a single security pool to enhance capital availability.
ScotPac also flagged it had introduced technology-driven assessments to provide rapid approvals and ongoing monitoring, as well as “minimal covenants, pragmatic compliance and fewer restrictions compared to traditional bank funding”.
The launch follows a pilot of the program in early 2025, with the lender reporting strong demand and positive outcomes across a variety of businesses.
Jon Sutton, ScotPac CEO, said the new solution would help the growing cohort of SMEs and emerging corporate businesses that have moved beyond small-ticket lending, but still remain constrained by more traditional banking models.
“ScotPac’s Asset Based Finance allows strong businesses to leverage their balance sheets to access the funding they need to grow,” he said.
“From manufacturers needing expansion capital to distributors smoothing inventory cycles, our Asset Based Finance converts dormant assets into immediate 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.”
Signs of optimism
The new product launch comes as Australia’s small-business owners show rising confidence in the near-term outlook.
According to research reported by The Adviser sister brand Broker Daily, four in five (81 per cent) small-business owners surveyed by SME lender Judo Bank said their business was in stable or strong health.
Meanwhile, nearly seven in 10 (68 per cent) also said they were confident about achieving business growth in the next year.
Judo Bank chief customer officer Frank Versace said the findings highlight the continued resilience of Australia’s small business sector.
“Our research shows the business environment has stabilised, with a significant increase of SMEs reporting strong business health and renewed confidence,” he said.
“We continue to see the resilience of Australia’s small business sector, particularly among younger entrepreneurs, who demonstrate remarkable confidence despite ongoing economic challenges.”
This is consistent with ScotPac research released earlier this year, indicating nearly six in 10 SMEs (59 per cent) expect their revenue to rise in the six months to March 2026.
At the time, Sutton noted the ongoing resilience of the segment.
“Once again, SMEs are displaying their outright resilience with nearly 60 per cent expecting growth despite rising cost challenges across our economy,” Sutton said.
“For those with a growth mindset, agility is key – being ready to seize opportunities by accessing scalable finance when needed.”
[Related: Almost two-thirds of SMEs forecast revenue growth]
