Demand soars for small business lending

"One in every three Australian small businesses is looking to get funds in the next six to 12 months"

Demand soars for small business lending



Roberto Sanz, National Sales Manager at fintech Prospa, believes now is the perfect time for brokers and accountants to diversify into small business lending as the end-of-year period coincides with a surge in business resilience and recovery.

With the end of the year almost upon us, it’s likely you are looking forward to some well-deserved down time. But many of your self-employed clients are coming out of the pandemic with big plans for the coming year. And whether they’re currently ramping up for a busy holiday season or wondering how to stretch their cash flow through the lean and quiet times in January, it seems that at this time of year small business owners could do with some extra support.

Research conducted by RFi Group and Australian fintech lender Prospa reveals that demand for commercial financing is surging across Australia – a fact reinforced by Prospa National Sales Manager Roberto Sanz.

“The research found that one in every three Australian small businesses is looking to get funds in the next six to 12 months to cover asset and equipment purchases and to fund digital transformation or additional inventory as they emerge from lockdown,” says Sanz.

Beau Bertoli, Prospa Co-founder and Chief Revenue Officer, shares Sanz’s optimism.

“The Australian Bureau of Statistics reports that the number of businesses in Australia increased by 3.8% in 2020–21, which is the biggest increase we’ve seen in three years.

That firmly points to a resilient economy and the return of business confidence.”

It appears that getting access to funding is the vital piece of the puzzle, with 87% of SMEs reporting they would miss opportunities without access to capital. Sanz says brokers and accountants can play an integral role in helping their clients get access to funds if they diversify into business lending.

“With business confidence increasing and demand for funds on an upward trajectory as business owners prepare to put their plans into action, now is the time to act,” he says, pointing out that he and his team at Prospa are ready to help brokers recognise opportunities and find solutions that work.

Partnering with a specialist business lender such as Prospa can not only open the door to whole new array of opportunities in the broking business model. Sanz believes it is also an important move for mortgage brokers looking to strengthen relationships by offering more to their existing clients.

Experience dictates that starting the conversation is the first step, and he suggests simply reaching out to self-employed clients to ask about their plans for the next 12 months and discuss how they are currently funding their businesses.

“It really is as simple as opening the door and letting them know you are there to help,” Sanz says. “Prospa supports partners with a suite of flexible products designed for the needs of small business, plus direct access to credit teams, white label marketing to help grow their business, and a business team which is on hand to discuss scenarios and options.”

And he says all this ensures partners and their clients feel confident and supported.

Regular client offers, such as Prospa’s current end-of-year offer of no repayments for the first eight weeks on business loans settled by 31 December 2021, also help to support businesses by providing some breathing space for them while they put the funds to use.

“As a partner-led business we customise our partnerships with our brokers,” says Sanz. “We work how they want to work. They can apply online on behalf of their client or simply call or email the Prospa team and then be involved as much or as little as they like – but they’ll always be able to track the application in real time.”

If you’re interested in learning more about the opportunities offered by diversification into business lending, contact Prospa on [email protected] or call the team on 1300 964 808.

Keep up with the latest news and events

Join our mailing list, it’s free!