Logistics News

Funder sees opportunity in T&L rebound

ScotPac aims fund at SMEs eyeing post-Covid recovery

 

ScotPac has opened up a $100 million working capital fund aimed squarely at small to medium enterprises, including transport and logistics (T&L) business owners.

The non-bank business lender is taking a punt on such firms needing capital to take advantage of a post-pandemic economic rebound.

It’s SME Bounce Back Fund has a limit $1 million capital with the first three months being interest-free.

The initiative will operate on a “first-come” basis from today until April 2022 or until funds are dispersed, according to ScotPac CEO Jon Sutton.

The lender sees some 2,000 SMEs potentially eyeing the fund, which is aimed at supporting SMEs’ working capital needs through trade finance and invoice finance, a ScotPac specialty.

There is no minimum turnover, the minimum facility size is $50,000, with SMEs able to access facilities of up to $1 million.

“Many of our clients are in the transport and logistics sector and we know how crucial cashflow is for them, in an industry with such tight margins,” Sutton said.

“With the first three months interest-free, SME owners can afford to invest in their business while their revenue recovers back to normal levels.

“This initial interest cost is being completely waived for the business owner and borne by ScotPac, as opposed to being deferred and compounded like the loan repayment holidays offered by some banks.

“With the economy opening up and business owners looking to bounce back to growth, the Fund allows ScotPac to continue the support we’ve shown for SMEs throughout the pandemic.”

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