Connecting small business clients with funding solutions

In the second instalment in the ‘How to Prospa’ series, we look at providing small business clients with access to funding solutions, and how brokers can benefit from partnering with Prospa.

At a glance

  • Brokers have the opportunity to provide funding solutions to small businesses who may be overlooked by traditional lenders.
  • Brokers who diversify beyond residential lending have the potential to offer solutions to more clients.
  • This can help boost revenue sources for brokers and growth for clients.
  • Prospa specialises in meeting the needs of small businesses – and looks after its Partners to help them grow their business.

Before continuing, read the first installment in the ‘How to Prospa’ series, which looks at how to expand your client base by understanding the sentiment of your small business clients.

Making a difference

Despite small businesses making up the vast majority of Australian businesses, they can have a tough time accessing finance to help them grow.

As explored in our previous article, despite aspirations to grow their business and concerns about cash flow, only a portion of businesses applied for funding in the last year, and not all of those received the full amount they applied for.

When asked to rank what is important when choosing a financial institution, ease and speed of the application process, fast access to funds, and support and advice from the lender are all elements that are becoming increasingly important to small business owners.

If the process appears overwhelming, some small businesses may continue with suboptimal financial solutions, such as dipping into personal savings.

Prospa has calculated that small businesses will need $24 billion in funding over the next 12 months to meet their financial goals. However, many traditional lenders either aren’t interested in this smaller end of the market or aren’t nimble enough to support opportunities that require a fast turnaround.

Simple solutions to complex challenges

Small businesses have unique needs and require solutions that are designed to meet their requirements – and through it all, cash flow is king.

Assisting a small business with its cash flow management strategy can help it focus on growth opportunities, so the potential to educate clients about the benefits of different lending products is significant.

Prospa aims to meet the needs of small businesses by offering financing solutions that can be confirmed within 24 hours, and do not require any asset security upfront for access up to $150k. Their specialised products include:

● Prospa Business Line of Credit: Ongoing access to up to $150k to cover gaps in working capital.

● Prospa Small Business Loan: Quick access of $5k-$150k to cover unexpected expenses or one-off purchases.

● Prospa Business Loan Plus: Larger loans above $150k-$500k to invest in business growth opportunities.

Diversifying your revenue

Brokers who are able to explain how alternative lending can help provide suitable funding options, and help clients access that funding quickly and easily, have the capacity to make a big difference to a small business’s future.

It’s not only your clients who can benefit. Residential brokers diversify to ensure they are able to help their clients over the long term with a range of financing solutions and are able to unlock value in various life stages and become trusted advisers.

Commercial lending is no longer the domain of specialised brokers. New technology, changing regulations, and increased competition now allow residential brokers to expand their range of services and build additional revenue streams. New capabilities in cash flow lending in particular hold great potential for brokers to meet the needs of small businesses.

While brokers may worry about the risks associated with commercial lending, working with Prospa allows you to focus on your relationship with the client. After submitting the lead details online, Prospa gets to work on the assessment, leaving the broker to either follow the process through or leave it to the client and the lender to communicate directly. Either way, the broker still receives a commission.

Growing your business

Prospa has provided financial assistance worth more than $3.4 billion to almost 50,000 small businesses. As a firm supporter of small businesses, Prospa aims to help owners get a fair go when it comes to lending and peace of mind through the process.

Prospa is also committed to supporting its Partners. They are treated as part of the team, and all Partners receive the same level of support and can expect collaboration when it comes to working with customers.

Partners are able to:

● Enjoy support from locally-focused Business Development Managers backed by a dedicated team who get to know your client’s business.

● Track the status of applications from start to finish with a personalised dashboard, where you can enter and track leads, view commissions and see status updates in real-time.

● Earn commission rates for new and repeat loans, meaning you can build an ongoing revenue stream from a single referral.

● Access tools and marketing resources to help you win new customers and find opportunities in your database.

Education, tools, and support are available for brokers to grow their business. Inquire about becoming a Prospa Partner to expand your range of services and sources of revenue.

The information in this post is provided for general information only and does not take into account your personal situation. Nothing contained in this post constitutes advice or an endorsement or recommendation of any kind by Prospa. Any links to third party websites are strictly for informational purposes only. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from financial, legal and taxation advisors. Although every effort has been made to verify the accuracy of the information as at the date of publication, Prospa, its officers, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy, or omission from the information for any reason, including due to the passage of time, or any loss or damage suffered by any person directly or indirectly through relying on this information.