EOFY offer ends March 31
To ease the pressure during the end-of-financial-year (EOFY) period for SMEs, small business lender Prospa is launching a special offer: no repayments and no interest on business loans for four weeks until March 31.
Taking the pressure off small businesses
After another tough year for SMEs, with the latest RFI NZ SME Banking Council survey revealing that small businesses are increasingly concerned about supply chain (67%) and labour costs (63%), Prospa said it hopes that the start of a new financial year will bring with it “new opportunities and optimism for advisers and Kiwi SMEs”.
Anticipating an increase in applications this EOFY, with 57% of SMEs also revealing they will need to invest in their business to generate future cash flow, Prospa’s EOFY offer aims to set small business owners up for success.
Prospa managing director for New Zealand Adrienne Begbie (pictured above) said many Kiwi small businesses would be using the beginning of a new financial year to set goals and look at growth opportunities.
“We generally see an increase in applications for funding around the end of the financial year as business owners are looking for growth opportunities, particularly across professional services, retail and hospitality sectors,” Begbie said.
While Prospa sees increased demand across various sectors, Begbie highlighted building and trade, professional services, retail, and hospitality as key areas seeking funding.
“But many small businesses across all industries are looking to generate cash flow and invest in their businesses as the financial year comes to a close,” he said.
“We hope this offer will give small businesses access to funding they need while taking some pressure off by delaying the repayments and interest for four weeks. Sometimes the right funding at the right time is just what's needed to keep things ticking over or propel a business forward.”
How SME advisers can help their clients
With the majority of loan applications coming through advisers, Begbie said Prospa remains well positioned to help advisers diversify and grow their business.
Begbie encourages advisors to proactively engage with their clients and introduce them to this offer.
“Now is the perfect time for advisers to reach out to their small business clients to help them get ahead this financial year,” said.
“Many small business owners aren't always aware of alternative lenders and because advisers already have strong relationships with their clients, they are in the perfect position to explain the benefits of specific lenders and offers like this one.”
Advisers can join Begbie and the Prospa NZ team at the NZ Financial Services Group (NZFSG) roadshow from the February 22, to learn more about commercial lending and how to make the most of the EOFY offer.
Advisers are also encouraged to share with their clients about Prospa’s new mobile app for its Kiwi business customers, which helps manage cash flow and better manage their expenses and repayments.
Launched in November, the Prospa app offers round-the-clock access to Prospa’s suite of SME lending products across both Android and Apple IOS platforms.
“Because of the in-depth knowledge of our customers' needs and preferences, the app is streamlined, so Prospa customers can access our lending solutions quicker and easier,” Begbie said.
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