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Update: The Australian and New Zealand operations of Bibby Financial Services were acquired by Scottish Pacific Business Finance in late 2015 to create Australia’s largest non-bank invoice finance specialist. Welcome to our website.

November 14, 2018

Scottish Pacific CEO Peter Langham has welcomed the Federal Government’s move to boost SME access to finance and has signalled that the nation’s largest specialist SME working capital provider is keen to participate in development of the fund.

The plan to inject $2 billion into the small business loan market, by creating a taxpayer-backed securitisation fund to invest in SME credit, is an unprecedented effort to boost lending to cash-starved firms, Mr Langham said.

“The fund’s clincher is the idea of rated programs. It means instead of supporting irresponsible lending by new players and risking taxpayers’ money, the government will be improving the ability of good lenders to help even more business owners,” Mr Langham said.

“This is one of the most measured, thought out and equitable initiatives I have seen from a government to support small business owners.”

Against the backdrop of the Hayne Royal Commission, there is a growing sense that the banks, the traditional funders of Australian SMEs, are finding it increasingly difficult to help SME business owners.

Scottish Pacific’s recent SME Growth Index survey of more than 1200 business owners nationally found increasing numbers of SMEs forecasting growth, but worried about how they will fund that growth.
“With the impact of the Hayne Royal Commission, and volatility in the Australian property market, the credit squeeze is on. This will only make it harder for those SME owners looking to fund their growth,” Mr Langham said.

“The issues are real. A shake-up is needed. This is good news for the hard-working, ambitious SME sector.”

SME Growth Index findings show one in three SMEs is looking to borrow $50,000-$250,000 and a similar proportion is seeking $500,000-$2million. 96% of respondents could name a key reason to borrow from an alternative lender, with fast credit approval and reduced compliance the main drawcards.

“SMEs are looking at alternatives to banks to access finance, including invoice finance, fintechs, government grants and crowdfunding. The fund announced today has the potential to make access to finance a reality for the SME sector,” Mr Langham said.

Scottish Pacific is Australasia’s largest specialist working capital provider, who for 30 years have helped thousands of business owners access the working capital they need to succeed. Scottish Pacific lends to small, medium and large businesses with revenues ranging from $500,000 to more than $1 billion, and their customers have more than $18 billion in sales each year.

Mr Langham is available for commentary on this issue. For more information contact:
Kathryn Britt, Cicero Communications Tel: 0414 661 616

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