This month, we’ve surpassed $1 billion in loans to 19,000+ Aussie small businesses. It’s a huge milestone for us – and we couldn’t have done it without our incredible customers.
Starting our engines
Like you, we know there’s nothing small about small business in Australia.
“Small businesses are the engine room of our economy,” says Greg Moshal, co-founder and joint CEO of Prospa. “We’re incredibly proud of the work our team does every day to keep small businesses moving with the right finance solution for their needs.”
To dig deeper into just how important funding is to maintain momentum for small businesses, we recently asked RFi Group and the Centre for International Economics to investigate the economic impact of funds lent by Prospa between 2013–2018 to small businesses in Australia.
The report found Prospa’s lending had contributed $3.65 billion to Australian GDP and resulted in more than 52,500 annual full-time equivalent positions being maintained over the previous five years.
What’s more, over one in four businesses surveyed were unsure if they would still be operating – or believed they would no longer exist – without getting a loan from Prospa.
In 2018 alone, the analysis found our lending added almost $1.7 billion to the Australian economy and resulted in over 24,000 full-time positions being maintained, including 4,632 in construction, 3,941 in hospitality and 2,613 in retail.
What does all this mean? It means that with the help of our loans, more Australians are pursuing their passions, sticking out their plans and chasing their goals, and we’re extremely proud to have played a part in that journey.
We’re all in this together
Australia’s 2.2 million small businesses are the backbone of our economy, yet accessing the funding needed to grow can be challenging through traditional channels.
One business survey reported last year that more than 30% of small businesses that tried to access finance in the previous quarter were unsuccessful. With small business owners finding it harder to access finance from the banks, more are turning to alternative lenders like Prospa to manage cashflow and fund new growth opportunities.
For many small businesses, being able to access funds is the difference between shutting up shop and staying afloat. According to the Australian Securities and Investment Commission, poor cashflow is cited as a factor in some 44% of business failures.
Prospa loans have been used to hire extra staff, buy new equipment, expand offerings and overcome whatever is standing in the way of achieving success.
So, thank you to everyone who’s taken us on their small business journey so far, and here’s to more surviving, thriving and kicking goals in the future.