Non-bank SME lending soars
Online SME lender Prospa has recorded a 200% surge in originations in the December quarter, driven by adviser business.
Tuesday, February 2nd 2021, 8:48AM
The Australian headquartered non-bank, listed on the ASX, booked its best ever month in December, as small businesses seek funding after the Covid pandemic and subsequent lockdowns.
Loan originations reached A$18 million in the fourth quarter, up from A$6 million on the prior quarter.
Non-banks like Prospa have enjoyed an uplift in business over the past year with banks maintaining conservative credit criteria, particularly for businesses affected by Covid.
Adrienne Church, general manager of Prospa in New Zealand, said advisers "have been so important in driving this uplift in originations".
"Last year was a period of uncertainty for many small businesses and particularly during the height of the pandemic, those bigger, growth focused investments were put off temporarily. Trusted advisers have played a crucial role in the small business community as the economy recovers, helping small businesses to think about their funding options and what their business needed to finish the year strong," Church said.
Church predicts SMEs will seek capital for expansion in the coming year as the economy bounces back from the coronavirus outbreak. She believes December's data indicates a strong year for small business lending.
"December in particular was a great month, with so many businesses getting ready for the holiday season and, for those in retail and hospitality, wanting to make the most of the busy period. Confidence is returning and small businesses will need capital to grow in 2021. I really encourage advisers to reach out to their clients, reach out to Prospa with their scenarios, and seize opportunities in the new year."
| « The Co-operative pushes for first home buyers | Intervention expected for housing market » |
Special Offers
Comments from our readers
No comments yet
Sign In to add your comment
|
|
Printable version |
|
Email to a friend |
