Prospa takes on banks and extends its loan to SMEs

The ASX-listed lender has signaled a new “all-in-one” business account to launch next year alongside two lending products, as a challenge for banking solutions in the market.

In a presentation to investors on Thursday (October 21), Prospa outlined its intention to launch a suite of products to develop its online lending platform for small businesses.

The new solutions are a new commercial transactions account with a built-in overdraft facility of up to $ 100,000, an expanded small business loan offering up to $ 500,000 in secured loans to larger small businesses and a line of credit to be deployed in New Zealand. .

All three products will be available through the broker channel in early 2022.

The new business account was touted as an all-in-one solution, including an overdraft facility to allow owners of small and medium-sized businesses (SMEs) to access credit and cover temporary cash shortages.

It will also contain an integrated suite of tools, available from a single platform to enable the management of transactions, payments and expenses.

Co-founder and chief revenue officer Beau Bertoli told The Adviser Prospa he wanted to “connect all the dots” for small business owners, to allow them to manage their cash flow in one place, rather than juggling banks, lenders, and payment. and billing providers.

“When you think of the competitive landscape, there’s really no one in Australia doing that. What we are offering is truly an Australian first and in the world there are very few examples of platforms that have done it successfully, ”said Bertoli.

During the presentation to investors, CEO and co-founder of Prospa, Greg Moshal, said many of the new solutions will test the other banking products that customers will use, through transaction accounts and banking products. payment.

But the lender doesn’t think it has to become a bank to be competitive.

“We have built this solution with several partners,” Moshal said.

“… And at this point, we believe we can deliver an experience that rivals the banking experience and enhances the banking experience without having to become an ADI.” [authorised deposit-taking institution] also.”

The shift to billing and payment solutions and software will provide the lender with an opportunity to diversify their revenue streams, Bertoli added.

It should also create opportunities for cross-selling credit products.

The commercial transactions account is expected to be launched around the third quarter of fiscal 2022 – within three months to March.

Meanwhile, the other two new lending solutions are part of Prospa’s strategy to capture additional market share, in an effort to satisfy underserved small businesses.

Starting Monday, October 25, the Prospa Plus Small Business Loan will offer up to $ 500,000 for a maximum term of three years, extending from its previous limit of $ 300,000 over two years.

The product will also offer reduced rates as well as a dedicated account manager throughout the life of the loan.

Mr Bertoli told The Adviser that the redesign of the product was based on feedback from brokers and a review of its prices and tariffs.

About 75 percent of customers had come to Prospa through its channel partners, according to the co-founder, who called the channel an “important part” of the business.

“When we develop and design new proposals, we always think of our partners, they are involved in the discovery, they are involved in the conversation, they really help us find out where the opportunities are, where can we grow our business. in, “he said.

“Here we have a very good balance between continuously improving this value proposition, our partners were telling us that they have customers who need more money in the longer term, they want to reduce their reimbursement and of course , there is always a desire to have products at a better price on the market. We were therefore able to deliver in these three areas.

Prospa offered no repayments for the first eight weeks on any new or refinanced small business loans through Dec.31 – touting the move as a nudge for small businesses to take advantage of the economic recovery.

[Related: Non-major bank launches digital signatures]

Prospa takes on banks and extends its loan to SMEs

The Advisor's logo

Last updated: October 21, 2021

Posted: 22 October 2021

If you’re feeling overworked and overwhelmed by this rapidly changing mortgage market, it’s time to make some changes, and the Business Accelerator program can help! Work smarter, not harder, in 2022 and beyond, visit the website here to secure your ticket.

Sarah simpkins

Sarah simpkins

Sarah Simpkins is the managing editor of Mortgage Business and The Adviser.

Previously, she reported on banking, financial services and wealth management for InvestorDaily and ifa.

You can contact her on This e-mail address is protected from spam. You need JavaScript enabled to view it..

Previous Coinllectibles ™ ️ Heritage Series 2 Fusion NFTs ™ sold out on launch day
Next SNA Displays Helps Launch Experiential Retail Store in Ohio