Leading non-bank business lender, ScotPac has welcomed the Federal Governments small business budget measures to assist businesses, including the temporary extension to the instant asset write-off threshold.

ScotPac CEO, Jon Sutton said the temporary extension to the instant asset write-off threshold to $20,000 for businesses with a turnover of up to $10 million for one year was a welcome initiative.

“The extended instant asset write-off is good news for SMEs as it allows them to invest in growing their business by purchasing much needed equipment,” Mr Sutton said.  

“We know from our most recent SME pulse check (SME Growth Index Q1, 2023) that 60% of SMEs are planning to invest in their business in the next six months, up from 55% a year earlier. 

“SMEs will welcome this additional investment support which will in turn benefit other businesses throughout their supply chains,” Mr Sutton said.

Mr Sutton said the other key budget initiative for SMEs included cash flow support through halving the adjustment factor applied to Pay As You Go (PAYG) and GST instalments.

“Cash flow is the lifeblood for SMEs, so any measure like this that keeps more working capital in the pockets of small and medium business owners is a positive.”

Mr Sutton encouraged SME owners to engage with their broker or advisor to ensure they were maximising opportunities available to them under the sorts of measures outlined in the Budget.

“A lot of SME owners remain unaware of the range of financial support options available to make running and investing in their business easier,’ Mr Sutton said.

“ScotPac has the breadth of products and experience to help more businesses in more situations than any other non-bank lender, including invoice finance, asset finance and online business loans.

‘Our new Partner Portal also provides brokers and advisors with all the tools they need to quickly find the right solution for their clients and grow their own business at the same time.”