SME lender reacts by expanding loan offerings
SME lending specialist Prospa says more small businesses are seeking finance solutions, driven by open borders and the prospect of a busy Christmas trading season.
“We are seeing increased demand from the small business sector for financing – everything from supporting a marketing campaign to covering wages, as well as longer-term strategic borrowing,” said Prospa managing director Adrienne Begbie (pictured above). “We’re delighted to be able to step in and support this burgeoning growth.”
Begbie said with borders open again and Christmas just around the corner, many small businesses want to jump on opportunities for growth.
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Prospa has introduced a new finance offering for advisers to support its small business clients in New Zealand.
It includes business loans up to $500,000 with no repayments for the first eight weeks and a line of credit up to $150,000 with a 24-month term.
Accredited Prospa partners can also apply for an exclusive partner small business loan to grow their own business.
Begbie said many Kiwi small businesses needed extra funding in the lead-up to Christmas to cover the cost of additional stock, staffing and temporary cash flow gaps.
“We wanted to make it as easy as possible for advisers to support their small business clients during this busy time of year,” Begbie said.
“Whether that’s by providing some breathing space on their loan repayments or flexible funding through a revolving line of credit, if our broker partners' clients are approved for line of credit, they will receive a discounted annual percentage rate of 19.99% p.a.”
Begbie said for any broker partners that wanted to invest in their own business, Prospa was offering up to $100,000 on a new small business loan and if approved, they would receive a maximum annual simple rate of 14.9% p.a.
Read more: Prospa NZ loan originations up 16.8%
“We continue to see a steady demand for funds from Kiwi businesses and we know that many small businesses are still finding it difficult to access funds through traditional lenders,” she said.
“Now is the perfect time for any advisers that are interested in commercial lending to reach out to our team of business lending specialists to get accredited and take advantage of these offers.”
Begbie said the demand from SMEs was a positive sign for the months ahead as the growth in Prospa’s New Zealand operation reflected the demand for financing from the SME sector.
