Strong growth in lending continues as Prospa supports SME recovery

While originations have returned to pre-Covid 19 levels of activity for the Australian business, New Zealand has again been a highlight, propelled by a fresh record for new loans in March.

Across Australia and New Zealand, Building and Trade continues to be a standout sector, and demand for funding has continued in professional services and retail, while hospitality has also increased slightly on the quarter too.

Prospa, which provides loans between $5000 and $300,000 and can deliver a fast decision with funding possible in 24 hours, also recently announced it has received access to the Government’s Business Finance Guarantee Scheme.

Adrienne Church, general manager for New Zealand at Prospa, said that the Government’s decision to extend access to the Scheme to fintech lenders reinforces the important and growing role they are playing in improving the flow of capital to underserved SMEs across the country.

The BFGS can help small businesses access credit for cashflow, capital assets and projects related to, responding to, or recovering from the impacts of Covid-19.

“Our New Zealand business continues to go from strength to strength and it’s an exciting time for the team and our partners right now," Church says. "We’re seeing an increase in demand for capital as SMEs across all sectors look to invest again in their future and access to the Scheme has empowered us to support even more small businesses with funding to grow and prosper. There’s a lot of activity going on and for advisers, now is a good time to be reaching out to clients to discuss upcoming funding requirements."

“Our partners continue to play a vital role in supporting the SME recovery. By educating their clients on alternatives to the banks, advisers are improving SME access to finance and helping their clients manage cash flow and seize growth opportunities. The roadshow has been a fantastic opportunity to connect on the ground with our partners, share insights and provide an update on Prospa in New Zealand. I’m looking forward to many more events like this one to come.”

Prospa chief executive Greg Moshal says “Prospa has seen better than anticipated growth in originations, driven by stronger economic confidence and investment within the SME sector."

“It is particularly encouraging to see such high levels of activity in the March quarter considering this is typically a quieter period than the busy December holiday season. This quarterly result shows good momentum for Prospa with a return to growth in revenue and average gross loans.”