Originations up 22% as SMEs bounce back
Small business lending specialist Prospa New Zealand has set another record-breaking quarter across all key metrics as SME customers invest in recovery and growth.
Prospa’s New Zealand business contributed loan originations of $38.9 million in the fourth quarter of FY22 (a 22.1% increase on Q3), scaling the new Line of Credit product into the country.
Prospa Australia and NZ achieved total originations of $245.7 million in Q4, which is up 35% on the fourth quarter of FY21 ($182.5 million). Demand from small businesses continued with Prospa recording its highest month of loan originations of $104.6 million in June 2022, with revenue reaching $53.9 million, up 61% from Q4 in FY21.
Prospa New Zealand managing director Adrienne Begbie (pictured) said she was delighted to see record-breaking results for the quarter.
“This is a true testament to Kiwi SMEs growth and resilience over the past few months,” Begbie said.
“In New Zealand, this has translated into a strong $38.9 million originations in June.”
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Begbie said Prospa’s broker partners worked tirelessly to champion small businesses and collaborate with them to find solutions to meet their client’s needs.
“We’re proud to support the recovery of small businesses in New Zealand and help them continue to prosper and grow their business,” she said. “We’re seeing a higher demand for funds and are pleased to offer a new Line of Credit product to Kiwi SMEs allowing businesses to tap into revolving credit, giving them the flexibility to manage their cash flow and promote growth.”
In its most recent quarter, Prospa NZ reported an increase of 6,000 customers which is the highest increase in volume for a quarter and its closing loan book of $701.3 million was up 64% against Q4 FY21.
“We observed significantly higher demand for funds from small businesses across New Zealand and Australia in the most recent quarter,” she said. “The momentum enabled us to achieve our highest ever month for originations and has led us to achieve the highest ever quarter for originations during Q422, which was an increase of 35% on Q421 of $182.5 million.”
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Begbie said Prospa NZ’s contribution of $39.8m in originations was welcomed by its new Line of Credit product which launched on July 4.
“Prospa’s continued focus on technology through digital and real-time enhancements has further improved our credit assessment process and the customer journey,” she said. “These investments have enabled us to achieve these fantastic results.”
Prospa chief financial officer Ross Aucutt said Prospa’s investments in technological capabilities and credit decision engines had supported its strong results.
“We are financially well positioned to support the ever-increasing demand for funds, with continued investment in scaling our funding products,” Aucutt said. “We can now execute prudent decision-making for our growth prospects despite uncertain macro-economic conditions across New Zealand and Australia.”
