Access to flexible, ongoing funds available
Small business lending specialist Prospa New Zealand has launched a new line of credit product which allow business owners to tap into flexible, ongoing access to funds.
A survey conducted with Kiwi small businesses found two in three respondents were interested in accessing a line of credit product due to flexibility and the ability to have greater control over cash flow.
Prospa said this had been reinforced by the feedback from Kiwi financial advisers and brokers as COVID-19 changed the financial circumstances of many small businesses and there was a lot more flexibility required to ride the waves of uncertainty that had followed.
Prospa NZ managing director Adrienne Begbie (pictured) said Prospa was incredibly pleased to meet the needs and desires of Kiwi small-to-medium businesses.
“From our survey and through anecdotal feedback from advisors, we’re hearing about the demand for more flexible funding products for small business operators,” Begbie said.
“Flexibility is the key after the unexpected challenges faced over the past few years and we are witnessing small business owners seek access to funding to assist with temporary cash flow gaps as they navigate through the environment.”
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Prospa’s line of credit product provides business owners with ongoing access to funds of up to $150,000 over a 24-month term with an option to renew.
Begbie said businesses that were eligible could draw down on the facility whenever they needed and pay interest only on the funds used.
“The product helps business owners cover staff wages or repay a supplier invoice, offering peace of mind and flexibility during times of heavy cash outgoings. Small businesses that have been trading for a minimum of six months and with a monthly turnover of more than $5,000 are eligible,” she said.
“The application process takes as little as 10 minutes, with a fast decision and funding available within 24 hours of approval.”
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Small business owner Deborah Delport, who runs an engineering company, said when incoming payments started becoming unpredictable due to the impact of COVID-19, she felt a great sense of security having access to Prospa’s line of credit.
"I anticipated a cash dip as recently it has been taking longer to receive payments, so when Prospa reached out about their line of credit it was like they read my mind,” Delport said.
“It has been a great buffer for my business and it's nice to know that funds are available in the background to fall back on if needed, while not having to pay interest on funds I don’t use.”
