Prospa: small business loans are a massive opportunity

Firstly, there is the influx of local and international competitors eyeing the huge unmet demand in online small business lending in Australia.

Secondly, a whole new fintech sector is growing as others seek to follow in our footsteps and transform different parts of the financial services industry through the smart application of technology. There is an increasing number of financial services-focused tech start-ups in areas such as cryptology, payment systems, automated advice, capital markets and peer-to-peer lending. With this growth has come an increasing appetite among investors to nurture and fund and collaborate with these entrepreneurs, which is fantastic because it will help position Australia at the leading edge of fintech on a global basis.

Finally, we are seeing increasing levels of government and industry support to help make finance more accessible to small businesses as a way of improving the performance of our economy and to create jobs and wealth in Australia. The Honourable Bruce Billson MP recently endorsed Prospa and other innovative lenders as being crucial to small business growth in Australia. We also hope the Turnbull government will continue to be supportive of technology startups and that small business will benefit from increased business and consumer confidence.

Prospa sees all of this change as a strong endorsement of our small business loan product. We’re firmly fixed on continuing to lead the way in making it faster, simpler and easier for small businesses to access the funds they need to grow.

Meeting the challenge

You may have seen the recent announcement that Prospa has secured an additional $60 million in capital to help fund loans to more Australian small businesses. The capital raising is the largest to date by an Australian online lender.

We see our biggest challenge at the moment as finding ways to reach more small businesses with our product. The market for small business lending in Australia is estimated to be around $10 billion. The demand is there; we just need to educate small businesses that there is a solution available if they want money to grow. That’s where you come in.

Our product and its features fit the real-world needs of the Australian small business market:

• Loans from $5,000 to $250,000
• Online application takes 10 minutes
• A decision in hours
• Funding usually within 24 hours
• Unsecured – asset or property security not required

Our customer base covers hundreds of industries with very diverse requirements for funds – we lend to cafes, doctors, plumbers, IT consultants, travel agents and importers.

This type of small business loan is now a realistic option for residential brokers and SMEs are increasingly aware of these financing options. If you have clients with a small business who are looking to bridge receivables gaps, purchase inventory, build a website, hire more staff, renovate or buy equipment, then a Prospa business loan is the solution.

Quick and easy referrals

Implementation is simple. Once you spot an opportunity, call the team at Prospa to confirm your customer qualifies. You can choose to refer the customer directly or Prospa will work through you; either way you are kept in the loop on all communications. Your commission is the same and any successful deals are matched back to you.

Beau Bertoli is joint-CEO at Prospa.