It reported a record in its nine-year history
Prospa Group Limited (Prospa), a small business lending specialist, continues to thrive as its full-year results reflect a strong rebound from the impacts of the COVID-19 pandemic.
Early this month, Prospa reported that it has successfully lent its total government allocation under the Business Finance Guarantee Scheme (BFGS) to small- and medium-sized enterprises (SMEs) in New Zealand via its Back to Business loans.
Now, the lender brings additional good news as its loan originations for the 12 months ended June 30, 2021, increased by 8.1% to $483.7 million (FY20: A$447.5 million). It also reported a strong rebound from the pandemic in the second quarter that led to a record quarter of originations in 4Q21 of A$183 million, a record in the company's nine-year history.
In addition, New Zealand originations were at A$78.2 million, a significant growth of 77% compared to FY20, driven by the increase in registered partners across the country.
During the same period, Prospa had over 11,900 active customers. However, with a growing number of customers, 54% of the organisations valued at A$262.4 million were generated from repeat customers, achieving a materially lower acquisition cost than the cost of attracting new customers.
Other milestones included more than A$2 billion in loan originations for nearly 34,000 small business customers since Prospa's inception. In addition, the first billion in capital funding took six years, while the second billion took only two years.
Read more: Prospa announces success with government’s business finance scheme
Adrienne Begbie, the managing director of Prospa NZ, said Prospa's broker partners have been collaborating with it to find solutions that fit their clients' needs.
“Being able to support so many small businesses during such a trying year has been truly rewarding. New Zealand's economic recovery from COVID-19 has been leading the way in many aspects, and our small business sector has contributed significantly to that recovery. While our current lockdown is no doubt a difficult setback for many, we know Kiwi small business owners are resilient, and we will once again rally around them to show our support,” Begbie continued.
“We're proud of the support we've been able to offer to not only help businesses recover but also take hold of new opportunities and even grow and expand their operations during times of uncertainty. New Zealand's go hard and go early approach has served us before, and we trust it will again.”
Beau Bertoli, Prospa's co-founder and chief revenue officer, added: “We are proud of the outstanding achievements over the period. Along with our partners, the company has supported small business customers during an extremely challenging period, enabling them to operate and build resilience.
“We have witnessed many small business owners pick themselves up to focus on recovery and growth. With our partners, we were and remain well-positioned to support the small business community with their demand for funding to recover and grow.
“Our achievements highlight our dedication to provide ongoing support to small business customers impacted by seasonal downturns or seeking to build resilience while we invest in our long-term growth ambitions.”
