ScotPac partnered with a leading Australian manufacturing and wholesale business to provide an asset-backed loan solution. This solution enabled the business to: navigate a challenging period, implement their growth strategy, and achieve significant financial improvements, all without the constraints of meeting financial covenants. 

Our client, a prominent Australian manufacturing and wholesale business with a nationwide footprint, had experienced a temporary decline in profitability.

Despite a well-defined medium-term strategy for growth and recovery, their existing major bank was unwilling to provide further lending support. 

An asset-backed loan approach negated traditional banking covenants and their subsequent restrictions.  This unique commercial flexibility coupled with the fast turnaround of approvals facilitated by ScotPac empowered the client to make time-sensitive decisions and capitalise on emerging opportunities and business needs with confidence. 

ScotPac adopted a strategic approach, leveraging the client’s existing assets to create a bespoke asset-backed loan solution. This provided the essential liquidity to support continued operations and growth initiatives. 

• Initial A$40 million Invoice Finance facility to bolster working capital and fuel expansion plans. 

• Subsequent A$30 million Inventory Finance facility, coupled with an Asset Finance solution, allowed the client to further leverage their asset base for growth capital. 

The commercially flexible lending solution proved instrumental in the client’s journey. It allowed them to: 

• Navigate a challenging period and stabilise their operations. 

• Achieve significant financial improvements. 

• Execute strategic acquisitions aligned with their growth plan. 

• All without financial covenants, that typically go side by side to bank borrower base solutions. 

ScotPac has been a key financial partner with this client, providing ongoing and innovative funding solutions that have been fundamental to their enduring growth and success.