Demand from brokers at all-time high
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Roberto Sanz, general manager of sales & partnerships at Prospa, reveals that broker engagement is on the rise as macroeconomics pressures on SMEs and evolving credit risk appetite drive greater collaboration
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NEW RESEARCH from RFI Global, commissioned by Prospa, reveals that nearly half of SMEs in Australia (46 per cent) anticipate a decrease in turnover by the end of the year due to economic pressures. On top of this, 54 per cent say they will probably need to invest further in their businesses to generate future cash flow.
As economic pressures persist and SMEs continue to grapple with increased costs across the board, with two in three concerned about rising supply chain costs (59 per cent) and labour costs (53 per cent), it’s clear that small businesses are doing it tough.
Prospa is a leading fintech company with a commitment to unleash the potential of small business in Australia and New Zealand.
We do this through an innovative approach to developing simple, stress-free and seamless financial management products and services.
Since 2012, Prospa has provided more than $4 billion of funding to support the growth and operations of thousands of small businesses. Prospa works with more than 16,000 trusted brokers, accountants, and aggregator partners to deliver flexible funding solutions to their clients.
ROBERTO SANZ, PROSPA
Despite this, the research highlights that short- and medium-term business confidence has started to improve, signalling that SMEs are continuing to show resilience despite the odds being stacked against them. How has this pressure affected business applications?
Overall business applications fell by 4.1 per cent year-on-year in the fourth quarter of 2023, according to Equifax Quarterly Commercial Insights.
Macro-economic factors, including rising operating costs, as referenced above, are continuing to place pressure on SMEs, and it would seem a simple conclusion to draw a connection between these pressures and the fall in overall business credit applications.
However, Prospa has seen significant growth in partner engagement, with the number of registered partners up 20 per cent year-on-year and those actively submitting leads up 22 per cent in the same period – an all-time high for Prospa.
ROBERTO SANZ, PROSPA
In direct response to the same challenges SMEs are facing, lenders have been reevaluating their credit risk appetite. Roberto Sanz explains, “Many small business owners may feel their eligibility for finances is becoming increasingly complex to understand, and choose to actively seek out advice from brokers to navigate these challenges and secure the funding they still demand.”
Prospa sees the fall in business credit applications as a more accurate depiction of the lending market tightening risk appetite and application criteria, and the flow-on effect of this tightening is a rise in demand for brokers from SMEs who are looking for support to secure the funding they need.
As challenging market conditions continue to persist, Prospa has identified a growth opportunity within the SME market called the Established Small Business segment, for SMEs with at least two years of trading and an average monthly turnover exceeding $100,000.
Prospa credit-decisioning insights reveal businesses within this segment are more likely to explore the value of alternative lending through a financial adviser and are generally able to service bigger loan amounts. Since launching a new tier of pricing in November to target this segment, Prospa has seen an increase of 14.7 per cent in the average loan value written by Prospa Partners, year-on-year.
On top of this, there continues to be a lot of traction in the professional services, retail, and hospitality industries within the Australian SME market.
SME lending with Prospa offers brokers an easy path to understanding and writing business loans and building protection around their existing loan book. Prospa provides tailored support and experience-driven advice to help brokers tap into hidden value, creating stickier relationships and building new revenue streams.
With first mover advantage, Prospa has delivered over $4 billion in funding, helping over 54,000 small businesses manage their cash flow and fund growth opportunities with business loans of up to $500,000 and a business line of credit up to $150,000.
“We are continuing to invest in the broker channel at Prospa, with a new tool to improve and ease the experience of writing business loans coming soon, just in time for the end of the financial year,” affirms Sanz.
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“Many small business owners may feel their eligibility for finances is becoming increasingly complex to understand, and choose to actively seek out advice from brokers to navigate these challenges and secure the funding they still demand”
“We are continuing to invest in the broker channel at Prospa, with a new tool to improve and ease the experience of writing business loans coming just in time for the end of the financial year”
Roberto Sanz, general manager of sales & partnerships at Prospa, reveals that broker engagement is on the rise as macroeconomics pressures on SMEs and evolving credit risk appetite drive greater collaboration
SME lending picking up
Why should brokers use Prospa?
Why should brokers use Prospa?
SME lending picking up
SME lending picking up
Published 29 Apr 2024
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Roberto Sanz, general manager of sales & partnerships at Prospa, reveals that broker engagement is on the rise as macroeconomics pressures on SMEs and evolving credit risk appetite drive greater collaboration
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
SME demand for funding
54% of SMEs say they will probably need to invest further in their business to generate future cash flow
Brokers can tap into SME finance opportunities today by building awareness, creating appetite and providing access to funding solutions to their network of existing and new self-employed business clients.
Prospa has a dedicated team of BDMs that get to know your clients’ businesses and provide fast, tailored solutions, and offer resources to help partners find and win more business in the market.
Partner engagement at all-time high
Number of registered partners up 20% year-on-year and those actively submitting leads up 22% in the same period – an all-time high for Prospa
References:
RFI Global AU SME Banking Council, December 2023
IN Partnership with
ROBERTO SANZ, PROSPA
ROBERTO SANZ, PROSPA
Prospa is a leading fintech company with a commitment to unleash the potential of small business in Australia and New Zealand.
We do this through an innovative approach to developing simple, stress-free and seamless financial management products and services.
Since 2012, Prospa has provided more than $4 billion of funding to support the growth and operations of thousands of small businesses. Prospa works with more than 16,000 trusted brokers, accountants, and aggregator partners to deliver flexible funding solutions to their clients.