In a challenging business environment – fuelled by global tensions and domestic inflation – SMEs are increasingly looking for flexibility and financial clarity. That is why debt consolidation has emerged as a key financial strategy to allow businesses to spend less time managing cash flow and more time growing revenue.
Craig Michie, group executive, client acquisition at ScotPac, Australia’s largest non-bank SME and corporate business lender, said more businesses are recognising the value of engaging a specialist non-bank provider to help with debt consolidation strategies, either exclusively or as part of a broader funding portfolio.
“Our most recent deep dive into business sentiment found that 57 per cent of SMEs plan to use non-bank lending to fund new investment, and one in three businesses sourced non-bank lending in the past year to satisfy general borrowing needs,” Michie said.
“This broader shift to non-bank lending is being driven by a few key factors: speed of funds; less complex onboarding; and the ability to secure finance without personal guarantees or property security.”
With more than 35 years’ experience helping businesses of all sizes optimise their cash flow, ScotPac has the broadest range of products when funds are needed most.
ScotPac provides a range of innovative financing solutions to help businesses consolidate debt and improve working capital.
These include the recently added Line of Credit and Asset Based Finance, which complement ScotPac’s more established solutions, such as its market-leading invoice financing.
Michie said ScotPac’s Line of Credit allows SMEs to draw down funds on demand and only pay for what they use.
“This product empowers business owners with access to fast, transparent finance when they need it, safe in the knowledge they will only pay for the funds they use. So, whether it’s for payroll, purchasing stock or paying down debt, our Line of Credit puts funds within easy reach,” Michie said.
More recently, ScotPac launched its Asset Based Finance solution that provides small and mid-tier corporate businesses with a clear pathway to secure tens of millions of dollars in funding – free from restrictive bank covenants – providing them with greater flexibility to invest in growth.
Operating as a single, revolving working capital product, it can be secured against multiple asset classes including debtors, inventory, property, and plant. It gives eligible businesses ongoing access to liquidity that grows as their asset base grows, delivering the funding agility businesses need to capitalise on new opportunities.
Michie said ScotPac has continued to evolve its financing solutions to better support businesses and advisers operating in a demanding environment.
“Now more than ever, maintaining strong and dependable cash flow is critical. Debt consolidation is a very effective cash flow management strategy and a key tool to support new investment. And it can be tailored to suit the needs of any business. ScotPac has the experience and resources to work with business owners and their advisers to implement solutions that are fast, flexible and fit for purpose,” Michie said.
