Prospa Lends Full Allocation Under Government’s Business Finance Guarantee Scheme To Support Kiwi Small Businesses
· Prospa reaches eligible government allocation of loans to support New Zealand’s small business sector.
· Quarterly results show 72.1% increase in loan originations on previous quarter, demonstrating the increasing awareness of alternative lending sector.
· Prospa’s new Back to Business loan continues to serve this market, while promoting New Zealand’s continued economic recovery.
Small business lending specialist, Prospa, has exceeded expectations by lending its total government allocation under the Business Finance Guarantee Scheme (BFGS) to SMEs across New Zealand via its Back to Business Loans.
Initially only available via traditional lenders, Prospa was a key player in lobbying for the inclusion of non-banks in the BFGS with the Financial Services Federation. Prospa, along with a number of other alternative lenders, were added to the scheme in April allowing more SMEs to access credit for cashflow, capital assets and projects related to, responding to or recovering from the impacts of COVID-19 before the BFGS concluded at the end of June.
Launching to the market in record time, with its inclusion in the BFGS enabling Prospa to increase awareness and strengthen trust of alternative lenders, while also attracting a higher market segment of customers (loans of >$100k - $300k).
Prospa’s recent quarterly results saw record breaking loan originations, with a 72.1% increase on the previous quarter, showing the growing need and appetite for higher loan amounts.
Due to its success with the BFGS, Prospa has retained its Back to Business Loan product (no longer offered in connection with the BFGS) to continue supporting Kiwi small businesses, with some modifications. This allows SMEs continued access to larger amounts of capital ($100k-$300k), to invest in business growth opportunities.
Adrienne Begbie, Managing Director of Prospa NZ, said:
“We couldn’t have asked for a better outcome, especially to lend the full allocation within such a short time frame. We believe it’s because we understand small business better than anyone. Research conducted with YouGov highlights that more than half of SME owners have missed out on opportunities to grow their business because they couldn’t access funding when they needed it. We don’t want that to be the case.
“Awareness around alternative lenders is still growing, so it’s great that the government saw merit in including lenders like us to the BFGS. We’ve helped more than 11,900 Kiwi small business owners to date and are so proud to have supported this community to get back on their feet and feel empowered for the future again.
“We’re excited to continue to service this new market segment through our continued Back to Business loans. As the economy begins to bounce back from the challenges of COVID-19, it’s critical that we support local businesses and encourage them to thrive,” concludes Begbie.
Prospa’s Back to Business loans are between $100,000 and $300,000 over a fixed term of up to 36 months. With an optional initial no repayment period of up to 4 weeks, no asset security is required upfront to access Prospa funding up to $150k. With a fast application and decision, funding is possible in 24 hours.
Prospa is a financial technology company and a leading provider of cash flow products and services that help small businesses to grow and prosper. The company operates across Australia and New Zealand and employs over 200 people.Prospa has a Net Promoter Score over 77.