Prospa

About Prospa

Prospa is a financial technology business that offers credit and payment solutions to small businesses in Australia and New Zealand, a market traditionally under-served by major banks. Founded in 2012, Prospa uses big-data analytics, engineering and predictive modelling to help optimise cash flow for small businesses in the region.

Prospa has grown to become the number one lender to small businesses in Australia and New Zealand, according to review platform TrustPilot, lending more than A$2.9 billion equivalent and serving more than 16,100 customers while boasting a net promoter score of more than 80.

Leveraging its proprietary technology platform, Prospa delivers a seamless customer experience with access to capital possible within the same business day.

Ownership and capital structure

Headquartered in Sydney, Prospa is an Australian incorporated company listed on the ASX. Cofounders Greg Moshal, the chief executive officer, and Beau Bertoli, the chief revenue officer, lead the business. They are backed by an executive team and board with a wealth of experience across finance, product, technology and people.

SIZE OF LOAN BOOK A$701M (GROSS)
MAKEUP OF LOAN BOOK

SMALL BUSINESS LOAN: 72%
LINE OF CREDIT: 28%

GEOGRAPHIC DISTRIBUTION OF LOAN BOOK

AUSTRALIA: 83%
NEW ZEALAND: 17%

OUTSTANDING DEBT ISSUANCE

WAREHOUSE FACILITIES: A$702M

Funding strategy

Prospa boasts a strong funding platform with committed funding lines from diverse domestic and international senior and mezzanine funders. Since inception, Prospa has pioneered securitisation within the SME lending space.

In 2015, Prospa established its first warehouse securitisation trust structure. This was also the first securitisation of smallbusiness loans in Australia. In 2018, Prospa entered the rated ABS market with a privately placed deal that achieved a capped investment-grade rating, the first transaction of its kind.

In New Zealand, Prospa established its first trust series warehouse facility in 2019, the first securitisation of the asset class in the country.

In September 2021, Prospa issued its first public ABS, a A$200 million transaction supported by a pool of Australian small-business loans and line-of-credit facilities. The transaction, PROSPArous Trust 2021-1, is the first of its kind in Australia, another example of Prospa’s role as an innovator in the securitisation market. Prospa intends to be a regular issuer of ABS and to explore further opportunities to strengthen and further optimise its funding platform in Australia and New Zealand.

Business performance

Prospa has observed significantly higher demand for funds from small business across Australia and New Zealand. It recently recorded a record quarter of originations coupled with strong growth in revenue and closing gross loans for the June 2022 quarter.

Following a period of prudent expense management, Prospa has increased its investment across technology, product, sales and marketing. Static loss rates remained within the board-mandated 4-6% tolerance range, supported by the group’s proprietary credit decision engine. With a strong balance sheet and funding platform, Prospa is well positioned to support the increasing demand for capital from its small-business customers.

FOR FURTHER INFORMATION PLEASE CONTACT:

Ross Aucutt
Chief Financial Officer
+61 498 240 262
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Michelle Morrison
Group Treasurer
+61 481 952 918
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Sanam Vikash
Senior Treasury Manager
+61 425 721 708
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www.prospa.com