As New Zealand businesses enter a new financial year, the economic outlook remains mixed. Interest rates may have stabilised somewhat, but tighter credit conditions, rising costs, global uncertainty and uneven demand continue to put pressure on SME cashflow.
“I think it will be a year of slow growth, but having said that, when I talk with business owners I’m hearing a lot of cautious optimism,” says Lindsay Fisher, General Manager of ScotPac New Zealand. “My key message to them is that the market is still there – we just have to get on with it.”
For SMEs looking to get on with it, says having flexible access to capital could make the journey a little easier. But for many, the challenge is not simply accessing funding to ease pressure or stimulate growth, it’s accessing the right type of funding at the right time.
The current environment has prompted ScotPac, as New Zealand and Australia’s largest non-bank SME lender, to introduce a new funding option for Kiwi businesses: A flexible Line of Credit designed to provide faster access to working capital when it’s needed.
The product launch follows strong demand in Australia, where the facility has already financed hundreds of businesses since its introduction in 2025. Lindsay says the decision on the new product, following feedback from business owners, came down to three things.
“Across the board – big or small businesses – it was speed, flexibility and trust that [businesses] need.”
He says, challenges like late payments, volatile costs and slower revenue cycles have made it harder for businesses to plan ahead with confidence and have forced many businesses to confront the realities of cashflow management more directly.
ScotPac’s new Line of Credit aims to provide businesses with a funding safety net that can be accessed quickly when these gaps arise.
Many businesses, Lindsay says, find themselves in the difficult position of being asset-rich but cash-poor – holding valuable equipment or inventory but lacking the liquidity needed to pay suppliers, wages or tax obligations on time.
“In that situation, you can still go broke. You end up having to liquidate assets just to keep the cash moving through the business.”
The Line of Credit facility allows eligible businesses to access up to $200,000 in funding, with interest charged only on funds that are actually drawn down. Approval decisions can be made within 24 hours, with funding available shortly after.
For business owners used to more rigid loan structures, Lindsay says the key advantage lies in flexibility.
“Business owners told us they wanted a backup plan. They need the ability to grab funding quickly when an opportunity or a challenge appears, but they don’t want to lock themselves into costs when they’re not using it.”
That flexibility can make a difference in everyday business scenarios, whether covering payroll during a quiet trading period, bridging a delayed customer payment, or moving quickly to secure equipment or inventory.
“When businesses come to their broker or financier, it’s often because they need action right now. The opportunity might be there today, but it won’t be there next week.”
While funding is often viewed as a lifeline during difficult periods, Lindsay believes flexible facilities can also help businesses pursue growth opportunities.
“Sometimes it’s about being ready when the opportunity appears. You might see a piece of equipment come up at the right price or an opportunity to expand, but you need to move quickly.”
He says the strong uptake in ScotPac’s Line of Credit solution in Australia suggests the demand for this kind of flexibility has hit the mark with SMEs.
“It’s blown the doors off over there in terms of uptake. It’s about being prepared and having the confidence that when you need funding, it’s there.”
More Information visit Scotpac
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