Non-bank SME lender ScotPac has acquired online lender Business Fuel, giving it access to a range of finance products and impressive technology.
Business Fuel provides business loans from $10,000 to $250,000 with terms up to 24 months to help small and medium business owners. It offers completely digital applications, data-driven automated credit assessments, and funding approval within 24 hours. The company also has a 1,100-strong broker network.
ScotPac CEO Jon Sutton (pictured) said the acquisition would make it the leader in the data-driven lending space for SMEs.
“It is a really exciting time for Scotpac and Business Fuel. Business Fuel are a tech-enabled business with brokers and customers as their focus,” Sutton said.
“ScotPac has been in operation for 30 years servicing working capital needs for SMEs and what we have found is small businesses in particular have a need for working capital really quickly, and that need was not being met.”
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Sutton said ScotPac dealt with a large number of brokers, so the acquisition would assist the non-bank lenders to provide a more tailored solution for SMEs.
“When brokers are sitting down and looking at their clients who need a cashflow loan to combine a debt finance, our brokers will have more to work with to help their client through our acquisition,” he said.
Sutton said brokers could take advantage of ScotPac’s digitalisation. It enables them to upload information quickly to an online broker portal so transactions can be processed large, complex transactions efficiently.
Business Fuel managing director Wade Doblo will continue to lead the Business Fuel team, reporting to Sutton.
“We’re excited to join ScotPac which provides us the opportunity to accelerate our growth in the SME market,” Doblo said. “Our team believes in good ideas and backing Australian businesses with the capital they need to thrive, so joining ScotPac heralds a new phase in Business Fuel’s success.”
ScotPac recently announced a two-month extension to its $100 million bounce back fund until June 30.
The SME bounce back fund is to further support small and medium businesses, particularly those recovering from the floods, to get back on their feet.
“The program provides support for SMEs who have been impacted by recent events. We have extended the program through to the end of financial year for SMEs to apply for financial assistance,” Sutton said.
“We stand by helping businesses get a better chance of success and to make that happen for our brokers and customers.”
