Lender Prospa offering version of Govt’s back-to-business loans

A small business lender, Prospa, is continuing to offer its own version of back-to-business loans since the government scheme ended in June.

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Prospa said it exceeded its expectations in loaning out its full allocation of loans to businesses under government’s Business Finance Guarantee Scheme to small and medium-sized businesses (SMEs).

Prospa, along with several other alternative lenders, were added to the government scheme in April allowing more SMEs to access credit for cashflow, capital expenses and responding to Covid-19.

Prospa NZ managing director Adrienne Begbie said: “We couldn’t have asked for a better outcome, especially to lend the full allocation within such a short time frame.”

The loans programme saw Prospa’s June quarter loans rise 72 percent on the previous quarter, and was the reason why the company was continuing to offer loans along the lines of the government-backed scheme.

“We’ve helped more than 11,900 Kiwi small business owners to date and are so proud to have supported this community to get back on their feet and feel empowered for the future again,” Begbie said.

“We’re excited to continue to service this new market segment through our continued back to business loans.”

Prospa’s back to business loans of between $100,000 and $300,000 were offered on a fixed term for up to 36 months, with an optional initial no repayment period of up to four weeks, no asset security required upfront to access funding up to $150,000, and a fast application turnaround.