be-nz logo
Story image

Prospa launches $45m facility to fund small business loans

13 Aug 2019

Prospa has launched a new warehouse facility that will be able to fund loans for New Zealand’s small businesses.

The facility, which has an initial capacity of $45 million and a three-year commitment, was built to help support small businesses row.

“Our first New Zealand warehouse creates a solid platform for growth as we continue to pioneer in the online small business lending space. We believe over time it will act as a conduit to bring global funds into New Zealand and increase access to finance for small businesses across the country,” says Prospa’s chief financial officer Ed Bigazzi.

Prospa currently manages more than 19,000 small business customers. The company has also originated more than $1 billion in loans across Australia and New Zealand.

As a standalone funding platform, the facility is an important part of Prospa’s long term capital management strategy.

Prospa believes the facility will allow the company to redeploy approximately $6 million of equity capital into its fast growing Australian business, while allowing for additional funders to be added as operations in New Zealand expand.

The facility is designed to be seamlessly scalable with a similar structure to Prospa’s Australian funding platform. The funding costs are broadly consistent with the levels observed for Prospa’s facilities in the Australian market.

To make it happen, Prospa has partnered with a top-tier local funding partner who has a strong understanding of the small business lending space and a long-term interest in supporting small businesses in the region. 

The unnamed funding partner has subscribed to Class B Notes in the NZ facility and lays a foundation for attracting high quality Class A investors.

 “This facility will allow us to support an increasing number of local small businesses,” comments Prospa New Zealand general manager Adrienne Church.

“Our New Zealand customer base is diversified across a range of industry sectors including hospitality, retail, professional services and building and trade.

“We have a TrustPilot rating in New Zealand of 9.8 out of 10 as at 31 July 2019 and we rank first in the non-bank finance category. We’re incredibly proud of the work we do to support small businesses in New Zealand and enjoy watching those businesses invest, employ and grow,” concludes Church.

In 2018 and 2019 Prospa won Australian Fintech Lender of the Year, achieving a clean sweep of the MFAA Excellence awards in all five States. The company was also designated an AON Hewitt Employer of Choice in 2017 and 2018.

Story image
Microsoft spruces up Teams platform with several new features
A new set of features to help virtual interactions become more engaging as the world pivots towards a stronger combination of remote and in-office working.More
Story image
It's time to sculpt the future of hybrid work, says Poly report
“The next normal is all about hybrid working moving to the mainstream as we respond, redesign and reinvent — flexible working across multiple locations, with immersive, productive workspaces that accommodate the work style of every employee."More
Story image
AWS launches fully-managed fraud detection service
Businesses lose billions of dollars to online fraud every year, however businesses respond by investing in cumbersome fraud management solutions that often rely on hand-coded rules and are difficult to keep up to date.More
Story image
Google unveils security overhaul across G Suite products
Google has announced 11 new security features across G Suite, to provide stronger security in Gmail, Meet, and Chat.More
Story image
Apple pledges 100% carbon neutrality by 2030
The commitment includes efforts to reduce carbon emissions by bolstering the use of low-carbon or recycled materials, investment into energy-efficient projects, as well as investment in conservation and environmental restoration programmes around the world.More
Story image
Microsoft business applications support safer workspaces
A pre-built Power Platform solution includes location readiness for safe office reopening, employee health and safety management, workplace care management, and location management. More