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The group has announced that it has signed and closed a corporate debt facility valued at $12 million.
Small- to medium-sized enterprise (SME) lender Prospa Group Limited (Prospa) established the corporate debt facility of $12 million in order to support the growth of the group and stand as a buffer should economic headwinds intensify.
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The transaction documents were signed on 7 July 2023 and were arranged and funded by iPartners along with other third-party debt investors.
According to Prospa, the debt facility will ensure investment in the group’s product and strategic roadmap continues, along with optimising cash reserves over the next 12 months.
The group further stated the corporate debt facility bolsters its position with stable funding capacity across its various funding facilities as it aims to support small businesses across Australia and New Zealand with capital needs.
Originations lift in 3Q23
The SME lender has been on a growth path as it reported it delivered originations of $172.8 million for the quarter ended 31 March 2023, a rise of 0.5 per cent on the previous corresponding period from $172 million.
The company reportedly experienced solid demand across Australia and New Zealand.
According to the group, New Zealand originations contributed $35.1 million for 3Q23, with the Business Line of Credit product gaining momentum, representing 14 per cent of the New Zealand portfolio mix.
In addition, a demand for funds resulted in Prospa’s closing gross loans for the quarter rising to $890.4 million, up 52.6 per cent on the same period last year, where it sat at $583.6 million, assisted by an increase of 5.1 per cent in active customers when compared to 2Q23, bringing the total number of customers up to 20,900 (an increase of approximately 1,000 customers).
Furthermore, the lender reported that revenue for the quarter increased by 63 per cent on the previous corresponding period, reaching $74.8 million (up from $45.9 million).
The group stated at the time of the update that its focus remained on the “overall credit quality of the loan book” in the current economic climate, with particular focus on tightening portfolio management settings and provisioning remains elevated.
Prospa co-founder and chief executive Greg Moshal commented at the time: “The March quarter delivered stable top-line growth, aided in part by the maintenance of our portfolio yield.
“While it’s pleasing to see the company continue to grow, we have proactively revised our credit-risk assessment policies as sustained economic pressures on small businesses have led to some stresses beginning to materialise across the loan book.”
[RELATED: SME lender reports rise in originations for 3Q23]
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