The small business lending space gets another player

Another player enters the non-bank SME lending space.

Friday, June 14th 2024, 9:56AM

Australasian non-bank SME lender, ScotPac has introduced a new product for New Zealand businesses that responds to their demands for quick and easy access to capital, with the convenience of an online application.

Its Boost Business Loan gives SMEs access to a fast and simple online lending solution that suits any business needing an immediate cashflow boost.

There are no restrictions on industries, which fills a critical gap in the market for New Zealand businesses that have, until now, been chronically underserved by quick and easy capital options, the company says

It says the product has the potential to benefit thousands of business owners.

This market is also served by Prospa, Bizcap and Line Capital. The later is a new business set up by Sam Coleman who bought the former Zip book of loans.

ScotPac says borrowers can access funds ranging from $10,000 to $200,000, up to an average of 100% of monthly sales. So, if a business averages $30,000 per month in sales, it could apply for a quick cashflow boost of up to $30,000.

It has what it calls a simple online application process and funds available for use within 24 hours of approval.

Loan terms are from 6-24 months with no penalty for early payouts. There is no security requirement for loans under $100,000.

To qualify for a ScotPac Boost Business Loan, a New Zealand business needs to have been trading in the same location for at least six months and be able to demonstrate a minimum turnover of $10,000 per month in sales.

ScotPac New Zealand general manager Lindsay Fisher, said the introduction of the Boost Business Loan product is a direct response to market calls for fast cashflow support.

"This game-changing new product provides a solution to the previous gap in the market for a fast online product that delivers funding when businesses need it most,” Fisher said.

"New Zealand SME owners have made it clear they want a fast and flexible finance product with the convenience of an online application process.

Fisher said ScotPac’s Boost Business Loan operates on a fintech platform underpinned by a data-driven credit decision engine that provides fast credit assessments.

Tags: Line Capital Prospa ScotPac SME lending