An online SME lender has announced several initiatives in response to feedback from its broker surveys that called for greater product diversity and improved clarity around credit and pricing policy.
Propsa has launched a new line of credit with a revolving facility between $2k and $25k, as well as changes to its small business loan product.
“Our partners wanted more choice – specifically a revolving credit facility for small business. The Prospa line of credit will allow customers to manage their day-to-day cash flow needs by providing access to a convenient and flexible source of funds,” said Matt Bauld, Prospa GM of sales and business development.
With the new business line of credit, customers can be approved for up to $25,000 and are free to use and redraw the funds as many times as needed, alleviating anxiety over day-to-day cash flow fluctuations. Customers only pay interest on what they use and can make additional principal repayments at any time.
Prospa has also made changes to its small business loan product, including improved pricing with simple annual interest rates from 9.9% to 26.5%, increasing maximum loan size to $300,000 and reducing documentation requirements for loans up to $150,000.
Bauld said, “Our partners wanted more information and flexibility in relation to document requirements, rates and term. The changes made to our core product, with better rates along with greater transparency on our credit and pricing policies, will make our business loans even more appealing to a greater range of brokers and customers.”
As part of the lender’s “commitment to transparency,” it will also provide a product matrix that better communicates Prospa’s pricing, credit policy, and requirements.
“Brokers are very important to our business and their feedback and opinion is crucial to our success. At Prospa, we are always seeking to provide a better experience to our customers and partners and so we have listened to their feedback and acted on it,” concluded Bauld.