Small business lending market heats up

With a new player coming into the small business lending market, established player, Prospa, offers a new product.

Thursday, October 28th 2021, 11:23AM

Another Australian small business lender has entered the New Zealand market, going up against Prospa.

Bizcap co-founder Zalman Blachman says; “Our decision to launch into New Zealand was a relatively easy one to make.”

“On the back of the great success we’ve enjoyed in Australia, moving into New Zealand is a natural progression, and we’re excited to be able to offer New Zealand SMEs access to business loans within the day.”

Bizcap provides loans of between $5,000 to $1,000,000 to small businesses that have poor credit scores, defaults or judgements, or have been rejected by banks and other non-bank lenders.

Meanwhile, Prospa has launched a new funding option and refreshed product terms to better support Kiwi small businesses.

The newly introduced Prospa Plus Business Loan provides funding of up to $500,000 – almost double that of the threshold previously accessible to SMEs – with interest rates based on business circumstances, pre-approval without a credit check to access up to $500,000, and a dedicated account manager to assist during the loan term to provide Prospa’s premium customer service.

The loan terms of the Prospa Plus Business Loan provides further flexibility for small business owners looking for capital. Loan terms have been extended by an additional 12 months, to up to 36 months, with express path applications only requiring six-month’s worth of bank transactions to access up to $250,000. No asset security is required upfront to access up to $150,000 in Prospa funding.

As business owners continue to navigate through the uncertainties of the pandemic, Prospa is also offering no repayments for the first eight weeks for all approved new or refinanced small business loans, until 31 December 2021*.

Product	Prospa Small Business	Prospa Plus Business Loan
Loan amount	$5000 - $99,999	$100,000 - $500,000
Loan terms	3 –24 months	12 - 36 months
Trading term	6 months	3 years

Prospa New Zealand managing director Adrienne Begbie saidthe launch of Prospa Plus Business Loan has been informed by direct feedback from our customers and partners, and allows us to service those in need of larger sums.

"Through this, we can support a greater number of SMEs in their recovery and growth, as they look to bounce back from this pandemic.

“Our small businesses are resilient and have demonstrated great strength, time and time again. We hope our new product, improved terms and eight week no repayment offer allows more business owners to recognise, that this time tomorrow, they can take hold of new opportunities, better manage cash flow, or get organised for end-of-year trade.”

Tags: Prospa SME lending