A fintech lender has reported the first signs of “green shoots” among its SME customers, as nearly 20% of those who requested relief are already in a position to resume full repayments.
Prospa has provided 5,501 customers with relief packages, including short-term payment deferrals and reduced repayments
Of the customers initially put on full deferrals, 18.6% have returned to full repayments since 15 May 2020.
The lender also reported that the volume of support requests has returned to pre-COVID levels.
“Prospa was in a strong position going into COVID-19 which allowed us to react quickly and adapt to the new operating environment,” said Greg Moshal, Prospa CEO.
“We have used this time to focus on preserving our capital so we are now well placed to support small businesses as they start to return to work.
“Our enhanced credit model will allow us to identify and support thousands more Australian businesses who are looking not just to survive, but to prosper, as they emerge from government restrictions.”
As of 4 June 2020, 12.8% of Prospa’s customers were still being supported with a full deferral and 19.9% with a partial repayment arrangement.
“As a company, we continue to closely monitor conditions and our data for evidence of the recovery and we’re encouraged by the green shoots we’re seeing with our customers as they get back to business,” Moshal said.