When Scott Chappell stumbled across an old bagel machine, little did he know it would be the catalyst to kickstarting Black Market Bagels, a business that mid-north coast foodies adore.

Black Market Bagels is a booming Port Macquarie business that dishes up authentic New York-style bagels to food lovers across the region. What began as a hobby has become founder Scott Chappell’s full-time enterprise. Black Market Bagels has grown from a humble shopfront to a wholesale business servicing cafes and restaurants along the coast in just a few short years. All thanks to Scott’s ingenuity and a helping hand from Prospa.

A passion rediscovered

Like many entrepreneurial stories, Scott’s journey into the world of bagels began with a desire for a career change. “I’ve always had a passion for food. I remember as a little kid wanting to be a chef, but I never did that. Then, in my mid-forties, I decided to do something about it. I guess you’d call it a midlife crisis,” he laughs.

Mid-life crisis or not, Fate must have been listening. As Scott was chucking in his day job to commence a new path, an old bagel machine was making its way from New York to Melbourne to Port Macquarie.

“I stumbled across this old machine… and that’s how I got into it,” Scott explains.

The bagel machine was just the beginning. Scott had an ambitious plan. He hoped to create more than just any bagel. He wanted to craft the best: an authentic New York-style bagel that took days to make and involved over 14 steps. It was a big dream for someone with little expertise, but Scott was determined.

“So, I learnt from a guy how to make bagels from some recipes that came from New York. When I do things, I like to do them properly,” he says. “We worked out how to take a basic bagel recipe and turn it into something we think is pretty cool.”

Small start, big dreams

The early days of Black Market Bagels were humble. Scott started baking out of a small commercial kitchen in an industrial estate, selling bagels wholesale and opening for a few hours on Fridays for direct customers. However, as word-of-mouth spread, Scott knew he needed funds to grow. “Scaling the business was one of the hardest parts,” Scott explains. “I had to deal with the usual challenges—finding staff, sourcing equipment, and, of course, finance. That’s where Prospa came in.”

After some early wins, the small team expanded into a storefront that served fresh bagels and became a cornerstone for their social media presence, drawing in more local customers. But Scott’s vision wasn’t limited to just selling bagels face-to-face—he wanted to take his product to wholesale markets far and wide.

“The front-of-house is great for advertising, but the core of our business is wholesale,” he says. “That’s what keeps us going.”

How Prospa fuelled the expansion

Like many small business owners, Scott needed help accessing the funds to scale his operation. Yet traditional banking didn’t appeal to him.

“Traditional lenders have traditional practices which don’t always suit small businesses,” Scott says. “Approaching a bank for finance can be overwhelming. They want to know everything about you, down to the colour of your undies!”

That’s when Prospa entered the picture. Scott says Prospa’s new approach to business lending was a drawcard.

“I’m in my fifties, so I’ve been around the block a little, and I find the new approach that Prospa brings to finance is refreshing. There’s less stress involved.”

With Prospa, Scott found the process to be efficient and straightforward. “The application process was simple. I made a phone call and uploaded the necessary documents, and it was done quickly. It was efficient—an efficient use of my time and resources.”

Growing Black Market Bagels with confidence

Scott secured a business loan to purchase essential equipment initially and then got approved for a line of credit to help manage the seasonal peaks and troughs of the hospitality industry when needed. “In retail and hospitality, you get highs and lows,” Scott explains. “When you have a low period, it’s a relief to know you have a line of credit to fall back on. It lets me sleep easier at night.”

Scott’s line of credit also allows him to seize opportunities quickly. “If another bagel machine comes on the market tomorrow, I don’t have to worry—I have access to the funds straight away.”

Scott says this financial support has been instrumental in Black Market Bagels’ ability to grow. “We’re now planning to expand into the Sydney market, which is huge for us,” Scott says. “Without Prospa, I wouldn’t have been able to scale as quickly or as smoothly.”

Beyond the numbers

For Scott, working with Prospa is about so much more than the money. It’s about the relationships he’s built with Prospa’s team. “The people at Prospa are friendly. It’s not just a transaction for them; they genuinely want to help you succeed,” he shares.

“When I speak to them on the phone, I can tell they’re smiling. It’s important to feel like you’re not just a number, and with Prospa, you’re not.” In fact, Scott contrasts his experience with Prospa against other traditional lenders . “Other places start from a position of ‘no’ and work backwards. With Prospa, they start with ‘yes’ and then work out how to make it happen.”

Lessons from a bagel boss

As Scott looks to expand his business into larger markets, he reflects on his journey and the lessons he’s learned.

“Be brave,” he advises fellow business owners. “Don’t be timid. Take the risk. What’s the worst that can happen?” He’s also a firm believer in getting the basics right. “Make sure the table in your café doesn’t wobble. Focus on the small things, and the rest will take care of itself. And, of course, keep an eye on your numbers. If your numbers don’t work, your business won’t either.”Scott’s entrepreneurial journey is far from over. With Prospa by his side, he’s gearing up to make an even bigger impact in the Australian bagel scene.

“We’re investing in new equipment, expanding our delivery capacity, and growing our team,” Scott says. “I’m excited to see where we can take this.”

‘For Scott, the journey is about more than just bagels—it’s about creating something lasting. “I love the feeling of creating a business, giving people jobs, and building something from the ground up. That’s what it’s all about.”

Need funds to take advantage of a growth opportunity? Ask Prospa about a funding solution today.