Small business lender Prospa has announced its full year results for 2019, and has reported a 36.6% rise in loan originations compared to the prior year.
FY19 revenue for Prospa rose by 31.2% on FY18 to $136.4 million, and the lender has now delivered approximately $1.2 billion in loans since its inception. Its total number of customers across Australia and New Zealand grew to over 20,000 - up by 58% on the prior year.
Prospa launched to the New Zealand market in March of this year, and estimates New Zealand’s market opportunity to be in excess of $4 billion per annum. The lender hit $1 million in origination during its first month in operation, and has since originated $24 million in loans to New Zealand small businesses.
Commenting on the results, Prospa co-founder and joint CEO Beau Bertoli said the rapid New Zealand growth was a strong sign for the lender’s future in this space.
“We continue to see a structural shift towards online small business lending,” Bertoli said. “Our customer numbers have grown 58% on the prior year, and this demand, plus the strong growth in New Zealand, demonstrates we’re providing a much needed service to small business owners.”
Prospa New Zealand has also announced that it will increase its maximum loan amount from $150,000 to $300,000, and will introduce its Dynamic Landing Page marketing tool to its adviser partners. The decision was made in response to growing demand from small businesses to access larger loans, and New Zealand general manager Adrienne Church says the development will mean exciting new opportunities for advisers.
“Advisers are a vital part of our business, and have been from day one,” Church said.
“Use of alternative lenders like Prospa is on the rise and we’re seeing larger loan size requests coming through from advisers, and a lot of excitement around the opportunities in small business lending. This increased loan amount will enable our partners to support even more of the 500,000 small businesses in New Zealand.
“Diversification is more important than ever for advisers looking to build sustainable businesses and we’re here to make this easier.”
The marketing solution is already in place in Australia, and will include educational resources to help advisers build their customer base.