Prospa

Prospa is a leading financial technology business that offers financial management products and services to small businesses across Australia and New Zealand. These markets are 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$3.6 billion equivalent and serving 21,000 customers while boasting a net promoter score of more than 70.

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

Headquartered in Sydney, Prospa is an Australian incorporated company listed on the ASX. Cofounders Greg Moshal, chief executive officer, and Beau Bertoli, 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.

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 in the SME lending space.

In 2015, Prospa established its first warehouse securitisation trust structure. This was also the first securitisation of small business 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 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.

The second PROSPArous ABS in as many years, a A$200 million deal, settled in December 2022, establishing Prospa as a regular issuer. Prospa intends to continue issuing ABS and to explore opportunities to further optimise its funding platform in Australia and New Zealand.

During 2023, Prospa has observed strong demand for funds from small businesses across Australia and New Zealand. As small businesses faced another year of challenging economic conditions, Prospa proactively tightened credit risk settings in a targeted manner throughout the year. While these adjustments have resulted in a reduction in total customer approvals, they ensure a strong, diversified portfolio. Prospa has begun to witness a subsequent decline in early-stage arrears.

Static loss rates remain within the board-mandated 4-6% tolerance range, supported by the group’s proprietary credit decision engine which enables dynamic, targeted credit risk management. With a strong balance sheet and funding platform, Prospa is well positioned to support the increasing demand for capital from its small business customers.

Ross Aucutt
Chief Financial Officer
+61 498 240 262
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Michelle Weidauer (nee Morrison)
Group Treasurer
+61 481 952 918
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Sanam Vikash
Assistant Treasurer
+61 425 721 708
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www.prospa.com