Prospa prospers in NZ and plans new product

The New Zealand operations of ASX-listed small business lender, Prospa, "continues to contribute significantly" to the group's performance.

Tuesday, January 25th 2022, 1:20PM

The company said in a quarterly update to the market that originations in New Zealand were up 57% to $28.3 million, compared to the corresponding period last year.

Late last year at the company's annual meeting chief executive Greg Moshal said; "our New Zealand business continues to go from strength to strength with FY21 originations growth of 77% compared to pcp and has once again made considerable contribution to the overall results."

"We have a highly motivated team on the ground in New Zealand, who have in just two years helped Prospa achieve and maintain the number one position in the non-bank financial services category on independent review site Trustpilot."

Prospa is planning to launch its Line of Credit in New Zealand this year, he said. The product provides businesses the choice to use as little or as much as they need within their facility limit, this can be for unexpected opportunities or expenses, with customers paying interest only on their drawn balance.

Prospa was the first Australian fintech to provide a revolving, committed, line of credit for small business.

He said the line of credit product had strong take up in the Australian market.

In the three months to December 31 the company reported record quarterly originations of A$186.6 million, up 85.3% on the corresponding period last year.

At the end of last year its gross loan book increased to a record of A$514.6 million, up 16.4% on prior quarter. First have EBITDA came in at A$9 million.

Total active customers increased to a 2021 high of 13,200, up 900 on September 2021.

“The company’s momentum highlights our ability to go from strength to strength. With our existing products, combined with the imminent launch of Prospa’s Business Transaction Account in Australia and expanding our New Zealand product base to include Line of Credit, Prospa will play an even bigger role in supporting small businesses with day-to-day payments, transactions, insights and growth,” Moshal said.

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