Getting Access to Working Capital Should Not Be Complicated
For New Zealand business owners, the gap between needing working capital and accessing it can feel frustratingly wide – particularly when traditional bank processes involve weeks of paperwork, branch visits, and rigid credit assessments. ScotPac’s business line of credit is designed to close that gap.
This guide walks you through the full application process from start to finish, so you know exactly what to expect before you begin and can prepare accordingly.
Before You Apply: Confirm Your Eligibility
Who Is Eligible for a ScotPac Business Line of Credit in NZ?
Before investing time in an application, confirm your business meets the following minimum criteria:
- You are a New Zealand citizen or permanent resident, aged 18 years or older
- Your business has been trading for a minimum of 12 months
- Your business generates a minimum average monthly turnover of $50,000
- Meeting these criteria does not guarantee approval, but it confirms your business is within the eligible range to proceed with an application.
Step 1: Define What You Need the Facility For
Start with Your Cash Flow Gap, Not a Dollar Amount
The most effective starting point for your application is not deciding how much you want to borrow – it is identifying the specific cash flow challenge you are trying to solve.
Are you bridging the gap between paying a supplier and receiving payment from a client? Covering payroll during a seasonal slow period? Funding a bulk stock order ahead of peak demand? Defining the purpose upfront allows your ScotPac lending specialist to structure a facility around your actual trading patterns rather than offering a generic product. Facilities range from $50,000 to $200,000, structured at up to 150% of your average monthly sales.
Step 2: Gather Your Documentation
What You Will Need Before You Begin
Having your documentation ready before starting your application speeds up the process considerably. You will need:
- 6 months of business bank statements
- Photo ID for all company directors
- New Zealand Business Number (NZBN) and registration details
- Collateral documentation if applicable
- A completed online application form
The online application itself takes approximately 5 minutes to complete.
Step 3: Complete the Online Application
A Fully Digital, Branch-Free Process
ScotPac’s application is completed entirely online. There are no branch visits required and no paper-based forms to post or scan. The online portal guides you through each required field step by step, and the process is designed to be completed in minutes rather than hours.
Once submitted, your application is assessed by ScotPac’s New Zealand credit team, who review your business’s financial position holistically.
Step 4: Receive Your Credit Decision Within 24 Hours
Fast Decisions for Businesses That Cannot Afford to Wait
ScotPac’s credit team aims to provide a decision within 24 hours of receiving your complete application and all required supporting documentation. For New Zealand businesses operating in fast-moving sectors – wholesale, import and export, manufacturing, and food production – this turnaround time is a meaningful advantage over traditional bank timelines that can extend to several weeks.
If your application requires clarification or additional information, your lending specialist will contact you directly to resolve it as efficiently as possible.
Step 5: Review and Accept Your Facility Terms
Know Exactly What You Are Agreeing To
Before accepting your facility, review the full terms carefully. Key items to confirm include:
- The approved credit limit and whether it meets your working capital needs
- The applicable interest rate and how it is calculated on your drawn balance
- The once-off establishment fee (3% of facility limit) and monthly administration fee ($85)
- Any applicable drawdown, annual, or inactivity fees
- The facility term, including the 2-year revolving redraw window
If anything in the agreement is unclear, your ScotPac lending specialist is available to walk you through the terms before you commit.
Step 6: Access Your Funds and Manage Your Facility
Same-Day Access Once Your Facility Is Active
Once your facility is active, you can draw on funds whenever your business needs working capital through ScotPac’s online platform. In many cases, funds are accessible on the same day you submit your drawdown request.
You repay drawn funds as your incoming revenue allows, and those repaid funds become available to draw again within your approved revolving facility. It is important to note that the revolving redraw period operates within a 2-year window. After this period, redraws are no longer available for a further 2-year repayment period, with the option to refinance at any point during either stage, subject to credit approval.
