Prospa book passes $500m on back of 85.3% rise

by Mike Wood18 Jan 2022

SME lender Prospa has posted record results for 1HY22, with a huge 85.3% on the previous period, topping out at $186.6m in originations.

The lender now boasts a loan book of more than $500m and over 13,000 active customers, 80.5% of whom are small businesses.

EBITA was listed at $9m, more than double what it was in IHY21, which Prospa CEO Greg Moshal said was a result of the underlying tech that powered their platform.

“We are proud of the Company’s outstanding achievements over the period,” he said. “Prospa surpassed quarterly records for originations within six months, increased our active customers to 13,200 and achieved a closing loan book that exceeds $514 million.”

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“Our unwavering commitment to keep small businesses moving through our award-winning products has helped thousands of SMEs close the funding gap and seize opportunities during a time of continued economic recovery. 

“We continue to be impressed by the resilience of our small business customers. Prospa’s achievements have been possible through the power of our technology capabilities and credit decision engine, investments that have helped us streamline the customer experience, which have translated directly into robust results for FY22 year-to-date.

“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.”

The new platform will see Prospa transition to what they called an ‘all-in-one solution’ for SMEs, with Beau Bertoli, one of the founders (along with Moshal) telling Australian Broker that it was the next phase of their growth.

“When we think of the SME owner and, in particular, our finance broker partners, what they’re looking for is an all-in-one solution for small businesses,’ he said.

“How do we be more relevant to finance brokers than a point-in-time lending product? How do we start to solve more meaningful challenges?”

“Access to capital is one of the top pain points for small business owners, so that offering is not going away, but what we think is going to evolve is the way that SME access capital and the way that broker partners will be able to solve those customer problems.”

“We’ve seen that through a massive uptake of online products, including Prospa, over the last few years, and we’ve seen a lot of SME owners gravitate towards products that are embedded in other experiences. We want to be a leading, driving force there.”