In 2025, SMEs are facing headwinds on multiple fronts. ScotPac’s latest SME Growth Index (SMEGI) Report highlights an ever- widening gap in six-month SME revenue forecasts, with the most optimistic and pessimistic projections now separated by a massive 48 percentage points. That is the largest business confidence divide in the 11-year history of the SMEGI Report.
This volatility is being driven by a range of factors. Business-to-business payment defaults jumped 47 per cent in the past 12 months. Minimum wages and superannuation payments continued to rise while discretionary spending softened. The result was skyrocketing levels of inflation in the second half of 2024 and an assessment from 20 per cent of businesses that they would not survive the loss of just one major client or supplier.
Compounding these pressures, regulatory changes are impacting thousands of businesses. The Australian Taxation Office (ATO) accelerated its tough stance on tax debt collection earlier this year, taking firmer action against businesses failing to meet their obligations. But the biggest change is just over the horizon. From 1 July, interest charges on ATO payment plans will no longer be tax-deductible. That means the cost of tax debt management for affected businesses will soon become very expensive – equivalent to credit card rates – unless they find an alternative arrangement.
This is where the expertise of brokers is pivotal. Business owners increasingly need support to cut through the noise and find the right finance solutions to meet their needs. Brokers who take the time to educate and guide their clients through important changes that could impact their business are set to be in high demand. The other part of the equation for brokers is cultivating a strong working relationship with a lender that understands your clients’ needs. That is where ScotPac comes in.
For over 35 years, ScotPac has partnered with brokers to provide tailored finance to thousands of SMEs. Today, we serve more than 8,500 businesses, offering comprehensive business lending services and innovative ways to unlock working capital when it’s needed fast. ScotPac offers a full suite of flexible solutions, including invoice finance (also known as debtor finance), asset finance, trade finance, business loans, and bespoke working capital facilities. We are proud to have once again been recognised by the broker community as having the Best Debtor Finance Loan in the market for a sixth consecutive time.
What also sets ScotPac apart is our commitment to technology and innovation. We have invested strongly in digitising our operations, reducing loan approval times and enabling brokers to serve clients faster and more efficiently. Additionally, we are bringing the benefits of AI to the SME sector, using advanced analytics to personalise finance solutions and streamline risk assessments.
This ongoing investment means brokers can be confident they’re offering their clients not just funding but a genuine partnership designed for long-term resilience and growth.
Whether a client needs fast online funding or a complex, structured deal, ScotPac can assist brokers at every stage of the SME journey – from start-up and growth to turnaround and expansion. ScotPac is more than a lender – it’s a one-stop shop to help brokers who are navigating their clients through today’s complex business landscape.
