Prospa says more funds are needed by SMEs after two tough years

It says this figure rises to 66% among businesses who have been running for less than two years.

The information has come from research commissioned by Prospa. The company specialises in business lending, mainly to SMEs.

Prospa NZ managing director, Adrienne Begbie, said it was no secret that the last two years had been difficult for most small businesses, with the pandemic impacting trade, staffing and supply chains.

“It seems getting access to funding is a high priority for businesses looking to get back on track,” she said.

And she made a plug for business advisers to help companies get through difficult times.

“One in five (22%) of small business owners found adviser support and advice to be one of the most valuable sources of external support.

“Having a trusted adviser can make a huge difference to business confidence, and now is the time to reach out and see how they can help.”

Begbie said banks were restricting their lending appetite, so it was important for small business owners to know that alternative lenders are available within the market.

In a push for new customers, Prospa is offering repayment holidays the first eight weeks on approved business loans settled this month.

Prospa's research was done online in January and February among a sample of 525 SMEs with one to 50 employees.