Big deal
IN Partnership with
How Prospa’s business lending specialist team helped deliver a great outcome for a hospitality business using the Prospa Business Line of Credit
More
The funding challenge
A kebab store owner recently capitalised on a multi-location expansion opportunity, opening four new souvlaki stores in prime city locations across a city.
The hospitality business owner was referred to Prospa with a request for $50,000 in funding through the Small Business Loan product. His application stated that he wanted to use the funds to upgrade equipment and manage operating expenses for the new locations.
Despite all five businesses operating under one entity that had been operating for three and a half years, at the time of Prospa’s initial credit assessment the four souvlaki stores had only been trading for four months. This skewed the income/expenses report, which took a monthly average over a 12-month period, and the spike in operating costs meant that it didn’t appear feasible that the business owner could service a $50,000 Small Business Loan.
Having reviewed the credit assessment, a Prospa Business Loan specialist felt there was more to the story than the numbers told and decided to contact the customer.
Having first dug further into the customer’s desired use of funds, Prospa’s lending specialist team uncovered that a one-off deposit of funds might not be the best solution to match the business’s need.
The business owner had assumed he would need to borrow a lump sum, unaware of any alternative solution for funding. The lending specialist proposed Prospa’s Business Line of Credit product, offering unlimited drawdowns on a facility of up to $150,000, with interest only paid on the funds used.
The business owner was delighted there was a funding solution to give him the quick injections of cash needed to cover day-to-day expenses as the new locations got up and running.
Prospa’s lending specialist then decided to review and resubmit the application for another credit assessment. Having made note of the consistent and significant month-on-month increase in revenue since opening the four new souvlaki stores, the resubmitted application used a six-month average of revenue and expenses. This meant the monthly revenue figure rose from $56,000 on the initial application to $76,000 on the resubmitted application, resulting in the customer being approved for a $50,000 Business Line of Credit.
The takeaway – strength in partnership
Prospa exists to unleash the potential of every small business. One of its core values is customer obsession, and its team lives that value every day, recognising that every business is unique. So, if an applicant doesn’t meet all the required criteria, Prospa will review their needs and find a personalised solution where possible.
With Prospa, you can choose your level of involvement: work with its team directly or refer your clients to Prospa. Either way, partnering with Prospa ensures that both you and your clients receive the support needed to achieve the best possible outcomes.
If you want to leverage Prospa’s support and the success of the Business Line of Credit to proactively pursue new opportunities and strengthen relationships with existing clients, get in touch with Prospa today.
Prospa is Australia’s number one small business online lending specialist providing market-leading capital products and solutions to help Aussie small businesses grow and prosper. Established in 2012, Prospa ensures applications are simple and funds can be accessed within 24 hours. Its cash flow products and services allow small businesses to grow and take advantage of opportunities to run their businesses or help them pay for goods and services.
Find out more
Client
Kebab store owner looking to expand
PRODUCT
$50,000 Prospa Business Line of Credit
goal
To upgrade equipment and manage operating expenses at four new locations
TERM
24 months (with option to renew)
Upfront security required
None
Origination fee
$0
The facts
Share
Share
Share
“The business owner was delighted there was a funding solution to give him the quick injections of cash needed to cover day-to-day expenses as the new locations got up and running”
“One of our core values is customer obsession, and our team lives that value every day, recognising that every business is unique”
Paul Evans, Prospa
Paul Evans, Prospa
“The business owner was delighted there was a funding solution to give him the quick injections of cash needed to cover day-to-day expenses as the new locations got up and running”
PAUL EVANS, PROSPA
“One of our core values is customer obsession, and our team lives that value every day, recognising that every business is unique”
PAUL EVANS, PROSPA
How Prospa’s business lending specialist team helped deliver a great outcome for a hospitality business using the Prospa Business Line of Credit
How Prospa’s business lending specialist team helped deliver a great outcome for a hospitality business using the Prospa Business Line of Credit
Advertising
Authors
E-newsletter
Contact Us
Contact Us
Australian Broker Talk
Events
White papers
Webinar
Australian Broker Talk
Resources
TV
Sector Focus
Power Panel
Independent Feature
Executive Team Profile
Exclusive Leader Profile
Business Update
Business Focus
Big Deal
Premium Content
Technology
Reverse Mortgages
Investment Loans
Specialist Lending
SME
Commercial
Specialty
Best In Mortgage
News
News
RSS
Sitemap
About us
Conditions of Use
Privacy policy
Terms & conditions
Firms
People
Copyright © 2024 KM Business Information Australia Pty Ltd
Advertising
Authors
E-newsletter
Contact Us
Contact Us
Australian Broker Talk
Events
White papers
Webinar
Australian Broker Talk
Resources
TV
Sector Focus
Power Panel
Independent Feature
Executive Team Profile
Exclusive Leader Profile
Business Update
Business Focus
Big Deal
Premium Content
Technology
Reverse Mortgages
Investment Loans
Specialist Lending
SME
Commercial
Specialty
Best In Mortgage
News
News
Copyright © 2024 KM Business Information Australia Pty Ltd
RSS
Sitemap
About us
Conditions of Use
Privacy policy
Terms & conditions
People
Firms
Advertising
Authors
E-newsletter
Contact Us
Contact Us
Australian Broker Talk
Events
White papers
Webinar
Australian Broker Talk
Resources
TV
Sector Focus
Power Panel
Independent Feature
Executive Team Profile
Exclusive Leader Profile
Business Update
Business Focus
Big Deal
Premium Content
Technology
Reverse Mortgages
Investment Loans
Specialist Lending
SME
Commercial
Specialty
Best In Mortgage
News
News
Copyright © 2024 KM Business Information Australia Pty Ltd
RSS
Sitemap
About us
Conditions of Use
Privacy policy
Terms & conditions
People
Firms
Drawdowns with interest only paid on funds used:
Unlimited
Option to cancel Business Line of Credit at any time with no added costs:
Yes
Digging deeper – the power of a personal touch
Published 19 Aug 2024
Origination fee
$0
Upfront security required
None
TERM
24 months (with option to renew)
goal
To upgrade equipment and manage operating expenses at four new locations
PRODUCT
$50,000 Prospa Business Line of Credit
Client
Kebab store owner looking to expand
The facts
IN Partnership with
The takeaway – strength in partnership
The takeaway – strength in partnership