Online lender Prospa continues to cement its place as a small business lender with the announcement it has surpassed $1 billion in loans to over 19,000 Australian small businesses.
Unlike the big four banks who received considerable reputational damage following the finding of the Royal Commission into Banking, Prospa’s customer satisfaction remains consistently high with a net promoter score in excess of +77 and a 9.8 out of 10 on review platform Trust Pilot.
Greg Moshal, co-founder and joint CEO of Prospa, said increasing demand for their product proves Propa delivers a much-needed service.
“Small businesses are the engine room of our economy. We’re incredibly proud of the work our team does every day to keep small businesses moving with the right finance solution for their needs.”
The online lender has also successfully branched out into the New Zealand small business loan market in the past six months delivering on approximately $10 million in loans, Moshel says they hope to increase the scale of their operations.
In October 2018, Prospa raised additional growth capital through a $43 million convertible notes issue, which was well supported by existing and new investors, including AustralianSuper. This capital will fund growth in the core product, in addition to further expansion into the New Zealand market.
Moshel said Prospa will continue to expand its service offerings for small business, which they see as the lifeblood of the nation.
“These small businesses have been underserved by the traditional banking system, and are increasingly turning to online, unsecured lending to support their growth.”
In January 2019, Prospa, in partnership with RFi Group and the Centre for International Economics, released research into the economic impact of its lending to small business in Australia.
The analysis found Prospa’s lending had contributed $3.65 billion to Australian GDP and resulted in more than 52,500 annual full-time equivalent positions being maintained over the prior five years. In addition, more than one in four businesses surveyed were unsure if they would still be operating without Prospa’s lending or believed they would no longer exist. In 2018 alone, the analysis found Prospa’s lending added almost $1.7 billion to Australian GDP and resulted in over 24,000 FTE positions being maintained.
“We’ve always believed our lending has a positive economic impact and adds real value to small business owners. The independent analysis by RFi Group and The CIE clearly demonstrates the extent to which providing access to capital allows small businesses to grow and create jobs. The results are greater than we had ever imagined and give us an immense sense of pride in the impact of Prospa on jobs and the wealth of households, local communities and the Australian economy.” Moshal said.