This product has already been purchased.
Non-bank lending is on the rise. Thinking beyond property allows ScotPac’s 9000-plus clients to take advantage of new opportunities without hesitation.
Presented by ScotPac
Banks have long been the cornerstone of business finance in Australia. While they remain critical to the economy, providing scale, stability and trusted access to capital, non-bank lenders are a hot complement that should be on every director’s radar.
Few people understand the bank-alternative lender relationship better than Jon Sutton, CEO of ScotPac, which has provided flexible funding solutions for over 35 years. Sutton’s experience in senior banking roles gives him a valuable perspective on what non-bank lending can do that banks can’t, and that is to allow enterprises of every size to achieve rapid success.
Opportunity doesn’t wait
ScotPac’s mission is simple, says Sutton: “To give businesses every chance of success.” That comes from the flexibility to act quickly when opportunities arise. “Speed has always been a constant, it’s part of our DNA,” he says. “To compete with banks, speed must be a component of every transaction we do.”
Craig Michie, who leads ScotPac’s client acquisition and has more than 40 years’ experience across banking and trade finance, agrees. “Banks are not necessarily all things to all people,” he says. “There are areas within the market they don’t want to work in or products they don’t offer. We work closely with customers to help them execute their strategy. The agility of the non-bank sector brings forward opportunities.”
Unlocking working capital
Traditionally, business lending in Australia has relied heavily on property and personal guarantees, giving rapid access to working capital for corporate and enterprise businesses. Non-bank lending is founded on using a full range of business assets that banks may not consider leveraging (or to the same extent). This additional access to capital with more flexible covenants, can be critical to enable the execution of strategy. “We look at what else is on the balance sheet,” says Sutton. “Plant and equipment, inventory and debtor ledgers can unlock working capital that’s often not thought about.”
ScotPac’s new Asset Based Finance is designed to make the most of those assets. Each facility is tailored to an individual business scale and secured against multiple assets, with streamlined credit decisioning and tech-led monitoring.
It’s a transformative approach that enables acquisitions, rapid expansion and liquidity without over-reliance on personal assets. Working capital grows as the business grows, releasing new cash flow and reducing risk to directors. While this type of lending isn’t always the cheapest, Sutton says the benefits are worth considering. “Directors should ask if they’re prepared to pay a little more for flexibility and certainty. Liquidity is everything.”
.jpg)
Why it matters to directors
Directors have a duty to ensure businesses can meet daily obligations while retaining the ability to pivot when opportunities or challenges arise. Flexible facilities with fewer or more adaptable covenants can reduce the risk of sudden funding shocks. Non-bank lenders focus more on underlying assets and cash flow, providing breathing room when it’s most needed.
Regular, low-touch reporting on asset levels also gives boards clearer visibility and confidence that funding remains aligned with performance. As strategy and funding become inseparable, directors now also play a key role in planning and making funding decisions. This has lifted expectations. As Michie says, “At a bare minimum, directors need to be inquisitive and ask — how will we fund this?”
Beyond reading balance sheets, directors need to understand how different funding structures behave under stress, what covenants apply and what happens if an unforeseen event causes a temporary setback. Boards should have the collective acumen to create the right capital structure, not just to execute growth plans, but to allow for — and thrive in — the unexpected.
Key takeaway
For directors, the message is simple: cost of funds should never be the only metric. The cheapest facility can be the most expensive if inflexible covenants or slow response times prevent a business from executing its strategy or weathering adversity.
Non-bank lending should become a strategic tool in every director’s portfolio; one that can enhance flexibility, unlock balance sheet value and provide access to decision makers when it matters most. “Non-bank lending is here to stay,” says Sutton. “Over the past five years, it has become a serious, credible complement to banks.”
In an environment defined by uncertainty and opportunity in equal measure, boards that understand all funding options gain a competitive edge. With speed and flexibility in their toolkit, savvy directors can give businesses what they need most — success.
Latest news
Already a member?
Login to view this content