Manager says the adviser sector has been vital in driving growth
Prospa’s New Zealand operations have reported 200% growth in loan originations quarter on quarter, and it also recorded its highest month in December - figures which it says demonstrate that SME demand for cash is strong, partly due to New Zealand’s early handle on COVID-19.
Originations in New Zealand were at AU$18 million, up from AU$6 million on the previous quarter. CEO Greg Moshal says that demand for capital has increased faster than previously expected, particularly considering that Australia’s Government Guarantee Scheme concluded at the end of September.
He says New Zealand operations have gone from “strength to strength,” and noted that Prospa New Zealand had had its busiest month in December.
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“We took a proactive role as a responsible lender for the SME sector during the pandemic and adjusted our credit risk assessment accordingly to ensure we are now in the strongest position possible to support small businesses as demand for capital returns,” Moshal said.
“Today’s results demonstrate that the greenshoots of improved confidence within the SME sector that we saw in first quarter have now planted deeper roots and are beginning to take hold.”
New Zealand general manager Adrienne Church says that the adviser network has been vital to Prospa’s rapid growth in the country, and to the recovery of small businesses - particularly those in the tourism and hostility sectors.
“Our partners in the adviser community have been so important to driving this uplift in originations,” Church said.
“Last year was a period of uncertainty for many small businesses and particularly during the height of the pandemic, those bigger, growth focused investments were put off temporarily.”
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“Trusted advisers have played a crucial role in the small business community as the economy recovers, helping small businesses to think about their funding options and what their business needed to finish the year strong,” she added.
“December in particular was a great month, with so many businesses getting ready for the holiday season and, for those in retail and hospitality, wanting to make the most of the busy period.
“Confidence is returning, and small businesses will need capital to grow in 2021. I really encourage advisers to reach out to their clients, reach out to Prospa with their scenarios, and seize opportunities in the New Year.”
