Why Australia has the Right Mix for Business Growth — Prospa
Did you know that 97% of businesses in Australia are classified as “small” and account for about half the value of the economy and 70% of the workforce? Prospa certainly did.
Over 2.2 million small businesses drive Australia’s economy. Once a small business itself, Prospa realised how much of the small business loan market remains untapped and underserved by the traditional banking system — leading small business owners to turn to online, unsecured lending entities to manage their cash flow challenges and take advantage of exciting market opportunities.
By providing fast, easy access to capital in order for small businesses to prosper, the startup has contributed around $3.65 billion to Australian GDP and resulted in more than 52,500 livelihoods being maintained annually over the years
— and the number just keeps on growing.
In this fifth instalment to “Why Australia has the Right Mix for Business Growth”, we break down how Australia positively influenced Prospa to become the #1 online small business lender in Australia and New Zealand and why it is perfectly positioned for global growth.
Australia has a Long History of Backing Small Businesses
The Australian government has been lauded for taking swift action toward socio-economic challenges brought by COVID-19, especially for small business owners. So far, all measures have been both highly targeted and scalable and have successfully sustained small businesses and kept their employees on their payrolls.
From small business stimulus or relief packages to JobMaker hiring credits to greater leniency for insolvency and bankruptcy, among other things, Australia has empowered businesses to stay afloat through uncertainty. Indeed, the country’s long history of developing an internationally competitive and productive environment for small businesses has positively impacted how Prospa does business.
Since its launch in 2012, Prospa’s founders — thanks to their Aussie roots — have expertly positioned their company to put small businesses at the heart of everything they do and, thus, transformed the way Australian small businesses experience finance.
Recognising the contributions by small businesses to the Australian economy, Prospa made it incredibly easy for these businesses to borrow capital up to $300,000, with approvals as fast as 24 hours without the need for collateral.
Australia Regularly Fosters Collaboration
The Australian government understands what small businesses need right now to survive. This is the force that drove them to collaborate with Prospa to distribute up to $223 million worth of credits and loans under the Coronavirus SME Guarantee Scheme.
Using this Guarantee, Prospa will be able to quickly and easily provide eligible businesses with unsecured funding access of up to $250,000 without any upfront fees. This will also allow Prospa to provide 6-month repayment holidays in case of further financial hardships.
Prospa estimates the demand for small business finance to be $20 billion a year which, given the increasing difficulty in securing bank loan applications, was not being met by the market.
Through this crucial collaboration with the Australian government, Prospa is able to take its services to the next level and to wider markets, including retail, construction, hospitality, and manufacturing.
One study found that more than one in four businesses that used Prospa were unsure if they would still be operating or believed they would no longer exist without the company’s lending services.
Prospa has only been around a short time, but the value they have brought into their target market has been staggering. Thanks to the influence, support, and collaboration of the Australian government, Prospa will continue to help even more small businesses — both locally and globally — prosper in the decades to come.
.png)
.png)
.png)
.png)
