This amid borrower demand and rising business costs
ScotPac, the largest non-bank business lender in Australia and New Zealand, has raised the limit of its online Boost Business Loan product to $500,000, from $250,000, to address heightened borrower demand and the growing costs of operating a business.
The Boost Business Loan, previously called Business Fuel and acquired by ScotPac in 2022, delivers a fast and simple financing solution for SMEs across diverse industries. Eligible businesses can now access loans ranging from $10,000 to $500,000, with funds disbursed within 24 hours upon approval.
Unlike many other loan offerings in the market, ScotPac's Boost Business Loan can provide up to 150% of a business's average monthly sales. Loans below $200,000 do not require security. The increase in the lending cap for the Boost Business Loan represents the full integration of Business Fuel into ScotPac’s established suite of SME financial offerings.
Jon Sutton (pictured above), ScotPac CEO, said introducing a flexible online business lending product alongside the company’s existing finance services has boosted loans under management at ScotPac.
“The introduction of Boost Business Loan has given ScotPac exposure to a significant part of the SME market we have not been able to help before, namely those that want fast and flexible finance with the convenience of online applications,” Sutton said in a media release.
“Growing SME and broker awareness and strong demand over the past 12 months has seen our Boost Business Loan gain a solid foothold in the rapidly emerging online business lending market. It has also played an important role in ScotPac’s total annual loan book growth.”
He said the Boost Business Loan is supported by a highly scalable technology platform that can accommodate substantial business growth. He predicts that the new $500,000 cap will result in increased demand for the product.
The Boost Business Loan by ScotPac integrates a state-of-the-art, data-driven credit assessment engine, enabling fast assessments and funding approvals within 24 hours.
ScotPac’s Boost Business Loan product has the following key features:
- Businesses should have a minimum 12 months of consistent trading at the same location and demonstrate a monthly total sales turnover of at least $10,000
- The application process is entirely online and can be submitted through the ScotPac website
- Loans under $200,000 do not require security
Sutton said the integration and development of the Boost Business Loan played a pivotal role in ScotPac's transformative technology initiative, designed to offer fast and tailored assistance to simplify the process for SMEs and their advisors.
In survey findings released earlier this year, ScotPac revealed that a quarter of SMEs sought non-bank funding options as government COVID stimulus programs concluded.
Craig Michie, ScotPac client acquisition and asset finance group executive, said then that the government support provided at the height of the COVID-19 pandemic was the “first experience of external finance” for many SMEs, opening their eyes to the power of working capital, and prompting them to investigate the potential to leverage finance options as part of their strategic planning for 2023.
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