ScotPac, a professional SME lender, will shine in 2022 and will launch three new products that accept property guarantees early next year. This is the first time that an Australian non-bank SME professional lending institution has provided housing loans.
ScotPac Entering a property mortgage is a response to the challenge faced by business owners, namely obtaining a home loan or being eligible to obtain bank financing for their business. ScotPac CEO Jon Sutton said the plan serves a large but underserved part of the market: business owners struggling to obtain proper financing.
All three products will be available to new and existing ScotPac customers, with each property receiving US$20,000 to US$2 million, or multiple properties up to US$4 million. The term of housing loans ranges from 5 to 30 years, and the term of commercial loans and on-call products ranges from 1 to 30 years.
Mr. Sutton said that the new product “also supports ScotPac’s core debtors, assets and trade finance products, allowing us to help a wider group of business owners than ever before.”
“ScotPac is willing to take on and serve this neglected part of the market. Through our in-depth understanding of the SME business and its cash flow, we can provide additional funds and products for their housing loan and business needs,” he explained.
“All three new solutions can be quickly set up in just 48 hours, no fuss paperwork and conditional approval are required, in addition to the personalized service provided by a dedicated customer relationship manager who can help SME owners Obtain funds as the business develops.
“Unlike other lenders’ cookie-cutter approval methods, ScotPac is able to personalize solutions to eliminate many of the challenges faced by business owners, allowing us to agree more frequently than other lenders.”
Good news for business owners seeking home loans
Instead of competing with large banks only on interest rates, ScotPac home loan for business owners The benefits of property secured loans will be provided, allowing SME owners to use equity in their homes to fund businesses. If customers use additional ScotPac solutions, such as invoices, assets or trade finance, they will receive bundled savings.
“In Australia alone, 350,000 self-employed business owners are facing the challenge of borrowing to purchase or refinance residential properties,” Mr. Sutton said.
“our SME Growth Index Research shows that most SME owners want to rely on their home equity as a source of business funds. Therefore, we have introduced a flexible solution where owners can use the additional equity in the residential property to borrow money for their business.
“The new housing loans we provide to business owners will help hundreds of thousands of self-employed individuals who have difficulty obtaining housing loans from traditional financing channels.
“Then, as the business develops, business owners can choose to use their home security for future business loans with ScotPac to quickly promote business growth.”
Alternatives to Bank Commercial Loans
this ScotPac Business Loan It will be a property guarantee tool that allows SME owners to unlock equity in their property to promote business growth or refinance from other commercial loans.
“Business owners need fast capital to promote their investment and growth, and our new loan product meets this demand.
The period is up to 30 years, and the principal and interest or interest only is up to five years. You can choose to redraw or make additional payments.
Business cash on call
Designed to compete with more traditional bank overdrafts, ScotPac Business on call Will provide fast and flexible funds as a working capital solution for property guarantees to smooth cash flow and pay for unplanned investments and expenses. It will be principal and interest or interest only for up to five years.
“If the business needs it, we will provide the set limits and the ability to withdraw funds, only to pay the used fees. This will be suitable for business owners seeking solutions similar to overdrafts,” Mr. Sutton explained.
“This enables companies to manage daily expenses to improve cash flow, and to quickly obtain funds to manage additional expenses when additional expenses are incurred.
“It has a competitive price in our target market because the cash on call is secured by property, and it allows business owners to benefit from ScotPac’s 30 years of knowledge and track record, providing businesses with fast answers, flexibility and Fast financing owner requirements.”
Mr. Sutton believes that although SMEs have faced challenges in the past two years, business owners have demonstrated their innate resilience and face the future with optimism. He believes that ScotPac’s three new financing options will help companies adapt and reposition themselves to meet the needs of the post-pandemic environment.