It comes through partnership between two big names
Prospa has partnered with Lend Capital to bring a one-of-its-kind small business loans marketplace to Kiwi entrepreneurs.
The marketplace was launched yesterday with key non-bank lenders Prospa, Bizcap, and Homesec, following its success in Australia.
“In Australia, Lend has facilitated over 42,000 small businesses to access over $1.5 billion in working capital and we’re excited to bring our best-in-class technology to New Zealand,” said Shaun McGowan (pictured above left), co-founder of Lend Capital. “Thanks to our unique data analysis and decision engine we can match clients with the right commercial products and ensure a better chance of approval.”
Lend Capital offers small businesses access to a suite of non-bank lenders.
“The Lend marketplace will give small business owners and brokers a simple way to find the right lender and products to suit their business needs and increase their chance of approval,” said Adrienne Begbie (pictured above right), managing director at Prospa NZ. “They can get fast access to the funding they need so they can get back to focusing on what really matters – running their business.”
According to a recent study commissioned by Prospa, 65% of SMEs anticipated needing funding in the next six months, of around $1.3 billion per annum. The top reasons cited for seeking funding included purchasing equipment (41%), maintaining cashflow (41%), and business expansion (32%).
“Although it’s a challenging economic environment at the moment with increased costs of doing business and high inflation, business confidence is the highest it’s been since 2019, which is really encouraging to see,” Begbie said.
“Many Kiwi businesses have weathered the worst of the storm and are looking ahead with optimism. In fact, small business owners expect to need more financing in the next 12 months, compared to the last six months, to maintain or grow their business.”
The research also revealed that access to funding can be challenging. The survey showed that SMEs that had sought funding were not always successful, with only 18% of the 37% of businesses that applied for a loan receiving the full amount they asked for, compared to 30% in November last year. A further 14% only received a portion of what they applied for, down from 18% in the last survey.
“This partnership demonstrates the power of industry leaders working together to grow the non-bank sector and make more options available to small businesses,” Begbie said.
McGowan said more exciting updates were in the pipeline.
“We’re excited to partner with more lenders in the coming months and to expand our offering with commercial and asset lenders, bank statement analysis, automated customer credit eligibility, accounting software integration, and more,” he said.
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