Prospa NZ business soars

SME lending specialist Prospa has recorded a surge in loan originations as more small businesses look to alternative lending channels.

Monday, July 26th 2021, 12:04PM

by Daniel Dunkley

The ASX-listed, Australia-based lender saw loan originations grow to A$34.3 million in the fourth quarter of its financial year, an increase of 72.1% on the previous three months.

Prospa's participation in the New Zealand Government's Business Finance Guarantee Scheme was said to be a key driver of the increase.

The lender said it continued to set monthly origination records as it grows its New Zealand footprint. It said the performance "validates the group’s decision to expand its product offering to this market".

Adrienne Begbie (pictured left), managing director of Prospa New Zealand, said:

"The record-breaking growth we’ve seen in New Zealand signals the return of confidence within the small business community. Small business owners are increasingly looking for capital to help grow their businesses, take on new opportunities and plan for their futures.

"It’s really encouraging to see this trend, as when small businesses thrive, we all thrive. They are the fabric of our communities and the backbone of our economy and we’re so proud to have been able to support more than 11,900 Kiwi SMEs to date."

Begbie encouraged advisers to expand into SME lending to help their clients.

"Many advisers are small business owners themselves, so they understand the struggles and pain points faced by small business owners better than anyone. That’s why we encourage advisers to diversify into small business lending, as they’re usually in a great position to advise small business owners on products and solutions that meet their specific needs.

"Our adviser network has been a huge asset to us, and we continue to value the strong relationships we have with our partners."

Tags: Lending Prospa SME SME lending