The company, led in New Zealand by Adrienne Begbie, has successfully completed an asset-backed securitisation to provide further firepower in Australia and New Zealand.
The fundraising process was backed by wholesale investors, and was supported by a pool of Australian small business loans and a line of credit facilities.
ASX-listed Prospa's transaction was over-subscribed. Demand from local and international investors meant the firm had to scale back orders to complete the deal.
Prospa's first asset-backed securitisation underlines the investor appetite for small business lending, and comes as non-banks build their market share of the business lending market.
Managing director Begbie said it was an exciting development for the lender, and demonstrated the firm's "ongoing desire to innovate, while continuing to support the needs of our small business community".
She added: "This is Prospa’s first securitisation deal, and while spearheaded in Australia, the increase in funding capacity will also help grow our small business loan book here in New Zealand.
"As Kiwi small business owners continue to show their resilience against the impacts of Covid-19, Prospa is committed to establishing efficient funding structures and provide innovative solutions to better service this market, now and in the future."