Affinity's ScotPac buys Business Fuel to fire up online loans – The Australian Financial Review

SME financier ScotPac is set to acquire Queensland fintech Business Fuel to help beef up its technology platform and get into the online loans game.
It is understood ScotPac, owned by PE firm Affinity Equity Partners, has agreed the deal and could announce it as early as this week.
Business Fuel has lent to more than 5600 small to medium sized businesses in the past decade.  AFR
Business Fuel offers loans worth up to $250,000 loans to small to medium-sized enterprises, via an all-online application process that promises funding within 24 hours.
The fintech was set up in 2012 and has funded more than 5600 SMEs in the past decade, both directly and via brokers and referral partners including accountants and lawyers. Its platform was built to make data-driven credit assessments, to try to deliver funds quickly.
ScotPac’s expected to plug Business Fuel’s loans capability and platform into its wider financing structures and 18,000 strong broker network. It is already one of the big non-bank players in SME finance across Australia and New Zealand, focusing on invoice/debtor finance and trade and equipment finance.
Business Fuel is understood to represent ScotPac’s first move into the online loans market, and indicative of what it wants to do under Affinity’s ownership.
Since Affinity took the keys in 2019, the company’s trying to transform into the leading technology enabled SME lender in the market. It’s said to be working for now, with customer numbers up 50 per cent in the past 12 months. ScotPac had a $1 billion-odd loanbook prior to the buyout.
It comes as ScotPac also circles Humm Group’s commercial arm, which offers equipment finance to SMEs via brokers.
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