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The SME lender has released its trading update for the half year ending 31 December 2022, reporting growth in total originations and closing gross loans.
Prospa’s total originations by the end of December hit $425.5 million, showing an increase of 35.1 per cent on the previous corresponding period (pcp), up from the $314.9 million reported for 1H23.
Small business loans contributed over a third (75.9 per cent) of originations during the half, revealing an increase of 33.5 per cent on pcp, up from $242.2 million reported for 1H22.
Closing gross loans increased 66.3 per cent on pcp, hitting $855.8 million, up from $514.6 million which the company stated was a result of a “strong demand for funds”.
Additionally, Prospa saw growth in the number of active customers to 19,900, a 10.9 per cent rise (approximately 1,900 more customers) from the previous quarter (Q1 FY23).
Looking across the pond, the SME lender’s New Zealand business also grew, with originations contributing $93.3 million for the half, with its Line of Credit product comprising 24.1 per cent, or $102.4 million of total originations across Australia and New Zealand.
Co-founder and CEO of Prospa, Greg Moshal stated he was pleased by the company’s strong momentum, which was underpinned by its mission “to be the financial partner of choice to small businesses in Australia and New Zealand”.
“We have continued to invest in our products and technology so our customers have simple, stress-free, and seamless financial management tools, and they can focus on what they do best.
“The impacts of inflation, rising rates, and a tight labour market have increased uncertainty in the operating environments for many small businesses,” Mr Moshal stated.
Mr Moshal added that the company has seen stress in some of its lower risk grades and have revised its commercial credit risk assessment policies “in-line with these changing conditions”.
“Notwithstanding the macro environment and tightening credit, we continue to grow our business by meeting customer demand, building out our product roadmap, and applying a strong focus on our portfolio management settings,” Mr Moshal concluded.
Rebranding
Prospa recently unveiled a new logo design signifying its “new era in small business financial management service”.
Along with the new logo, the non-bank lender also launched a new “all-in-one” business account for small businesses.
Prospa stated at the time that the rebrand represented its move away from being solely an online lender to a provider of small-business financial management services.
[RELATED: Prospa unveils rebrand, launches business accounts]
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