Prospa originations leap by 75%

The lender also recorded earnings before interest, tax, depreciation and amortisation (EBITDA) of $9.6 million for the first half of the 2022 financial year, more than doubling year-on-year (up 134 per cent).

It closed the half-year at a peak of $514.6 million in gross loans, up 51 per cent on the pcp. Average gross loans over the period hit a record $454.5 million, up 33 per cent on the pcp.

Loan originations of $315.1 million during the half had been underpinned by significant uptake of Prospa’s small-business loan product, which attracted $242 million in originations.

Its line of credit offering also grew, with $73 million in originations, up 164 per cent on the previous corresponding period.

Greg Moshal, co-founder and chief executive of Prospa put the results down to the company’s ability to scale its lending products and the roll-out of its cash management solutions, targeting small and medium enterprises (SMEs).

Prospa is in the process of preparing the business account to launch in the second half, after expanding the Prospa Plus Small Business Loan up to $500,000 over three years from its previous limit of $300,000 over two years.

A further staged release of credit products and financial solutions, including invoicing, bill pay and expense management is scheduled for financial year 2023.

“Prospa continues to build momentum to further strengthen the business, while executing on its strategy to provide small businesses with a range of digital solutions to further address leading cashflow management challenges,” Mr Moshal said.

“With the successful launch of Prospa Plus Business Loans in October 2021, the company is proud to report a significant initial response from new and existing customers.”

Similarly, Ross Aucutt, chief financial officer at Prospa commented the company reaching just over half a billion dollars in its loan book has highlighted its ability to snatch market share and to diversify and expand its product suite.

In the lender’s New Zealand operations, there had been $50.4 million in new loans, surging by 110 per cent on the pcp.

Prospa noted “strong ongoing demand from SMEs as the economy continues to open” post-lockdown.

The lender is set to launch a line of credit product in the Kiwi market, which is planned for later this year.

The company also flagged the launch of a share buy-back program of up to 10 per cent of Prospa’s issued share capital, to commence in the coming half.

Mr Aucutt reported Prospa’s record results had positioned it to purchase shares and to return capital to investors, while still growing and investing.

“We believe a share buy back reflects our strong capital position and positive outlook for the business,” he said.

Prospa also bought Queensland-based commercial finance brokerage Loanezi last year.

Co-founder and chief revenue officer Beau Bertoli told The Adviser the deal presented an opportunity for the company to expand its service offerings and to reconsider its position in the broker market.

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