Prospa, Australia’s number one online lender to small business, today revealed new research into the economic impact of its lending to small business in Australia.
Prospa undertook the economic impact assessment in partnership with RFi Group and the Centre for International Economics (CIE). The project considered the value of funds lent by Prospa over the period 2013 – 2018 and assessed how funds have benefited Prospa’s customers through increases in revenue and employment and the flow-on effects of these funds to the wider economy.
The results of the research showed:
- Prospa lending has contributed $3.65 billion to Australian GDP and resulted in more than 52,500 annual FTE positions being maintained over the period 2013 – 2018
- In 2018 alone, Prospa’s lending added $1.697 billion to Australian GDP and resulted in close to 24,400 FTE positions being maintained
- For every $1 million in lending by Prospa there is a corresponding $4 million increase in GDP and 57 annual FTE
- Over 80% of customers believe their most recent Prospa loan resulted in an increase in business revenue
- 26% of customers are unsure whether they would be still be operating without their most recent loan, or believe they would have been forced to close.
Greg Moshal, co-founder and joint CEO of Prospa, said:
“This report reinforces how important it is for small businesses to be able to access funding, the significant role of Prospa in providing that funding, and the flow on impact on the wider Australian economy.
“The analysis shows responsibly managed lending to small business, supported by smart technology and a great customer experience, is having an economy-wide impact.
“We have always celebrated every individual customer as a success story. As the leader in online small business lending in Australia we wanted to quantify our overall impact. The results are greater than we had ever imagined and give us an immense sense of pride.
“This research tells us three things”, said Prospa co-founder and joint CEO Beau Bertoli: “Our lending is in demand, it’s helping small businesses grow and employ many thousands of Australians – and it will have an even bigger impact as Australians increasingly become aware of alternative lenders.
“The contribution of Prospa’s lending to Australian GDP is in the billions of dollars, and even more incredible is the 52,500 full-time equivalent positions we’ve helped maintain for Australians since 2013. That’s jobs for café staff, shop assistants, tradies, hairdressers and accountants, across every state and territory of Australia. And that number will grow in 2019.”
“Our lending makes a difference and underscores the importance of the Federal Government’s decision to make available $2 billion in loans for small businesses. These funds are critical to support the engine room of the Australian economy – at a time when large banks are tightening their credit policies.”
Prospa’s contribution to GDP has increased markedly year-on-year as originations continue to grow. The value of Prospa’s GDP contribution in 2018 was $1.697 billion, 49% greater than its contribution in 2017, which in turn was more than double its contribution in 2016.
Not only has Prospa’s lending resulted in economic growth at a national level, it has also had a real impact on employment growth across the small business economy.
For every $1 million lent by Prospa, 57 full time equivalent (FTE) positions across Australia are maintained. Over the last five years, Prospa’s lending has resulted in more than 52,500 annual FTE positions being maintained, with an estimated 24,400 FTE positions in 2018 alone.
The industry sectors where Prospa’s lending made the biggest impact in 2018 were hospitality, building and trade, manufacturing, retail, professional and other services.
Funds lent by Prospa support a range of business-critical activities. The survey found Prospa customers used an average of 32% of their most recent loan for working capital, 24% for purchasing inventory/stock and 12% to purchase additional hardware such as machinery and tools.
Download a digital version of the full report here. Or for further information, contact:
Anna Fitzgerald +61 410 447 922
Roger Newby +61 401 278 906
- Prospa has originated over $920 million in loans to date
- Prospa has over 18,000 unique small business customers
- These customers have a strong track record of repeatability (approximately 69% of eligible customers take a repeat loan)
- Prospa’s distribution channel includes 10,000+ partner firms
- Prospa is an AON Hewitt Employer of Choice in 2017 and 2018
- Prospa’s Net Promoter Score is +77
- Prospa recently achieved a clean sweep of the MFAA Excellence awards for Fintech Lender of the Year, winning the award in all five States in Australia