Pre-Christmas a busy time for businesses, non-bank lender says
In recognition that the lead-up to Christmas is busy for businesses, Prospa is running a nationwide roadshow to equip advisers with knowledge and tools to support their finance needs.
The non-bank lender, which specialises in small business lending, is hitting the road in November, holding over 30 events throughout the country, from Whangarei to Dunedin.
Its nationwide roadshow, which starts in Hamilton on November 8, is expected to attract about 400 advisers, with 140 advisers already registered for Auckland.
Prospa business development manager Huia Manuel (pictured above) said that the pre-Christmas period was typically a busy one, particularly for seasonal businesses such as those operating in retail and hospitality.
Equally, many businesses are winding down, preparing to close their doors for one to four weeks and want to ensure they have sufficient cashflow to meet costs such as wages and rent, she said.
The roadshow is timed with the level of demand Prospa is seeing and aims to give advisers the confidence to speak to their self-employed customers about their cash flow needs and financial goals.
“Coming into this end of year time where we see demand growing for access to funds, the roadshow is very timely,” Manuel said.
“We’ll be giving updates on campaigns for the end of year period, who is coming into Prospa for funding and why, and tools available to support advisers to let their customers and referrers know what they can offer.”
Additionally, advisers attending the roadshow will enjoy networking opportunities, benefiting from the mix of people, personalities and experiences.
Invitations have been sent out and registrations remain open to all advisers who can reach out to their BDM and join in however suits them best, Manuel said.
Increase in activity observed post-election
Acknowledging that the industry had experienced its share of ups and downs over the last few years, Manuel said that the end of the 2023 general election was met with a sense of relief and a desire to “look forward”.
Feedback from advisers was that their level of enquiry had picked up and indicated that they were more positive about the future, she said.
Line of credit provides “safety net” for business
Prospa’s three core products are its Small Business Loan, Business Loan Plus and Line of Credit.
The Line of Credit product, which Prospa introduced around 14 months’ ago, operates like a revolving overdraft facility, with a limit available for 24 months and interest payable on the amount drawn down.
As business gear up for the Christmas period, the Line of Credit product provides peace of mind and has been very popular, Manuel said. Insights from Prospa showed the product is most popular within the professional services sector, including pharmacies, doctors and architects.
“A business may not need to use the funding over that time, but they’re just happy to have a safety net to cover their bases,” Manuel said.
As the number of Kiwis using mortgage advisers continues to grow, (estimated to be 45% to 50% according to Financial Advice NZ), Manuel said that Prospa was well positioned to support advisers wanting to diversify and assist clients with a wider range of financial needs.
“Advisers want to more tools in their toolkit to help a customer that’s in front of them … we make it really easy for an adviser to work with us and dip their toes into talking about a customer’s business and business lending,” she said.
“There is also an opportunity for advisers to talk to accountants in their referral network about lending solutions they can offer to their clients,” she said.
After launching in New Zealand, Prospa recently achieved $500 million in loan originations, with its average loan size recorded at $50,000.
What are the opportunities for advisers leading up to Christmas? Share your thoughts in the comments section below.
