Prospa launches tools for New Zealand SMEs to enhance growth

Prospa, New Zealand's small business lender, has announced new financial tools to support SMEs, including Bill Pay, and expanded loan limits.

The introduction of these tools aims to address the gaps that smaller businesses often face with traditional banks, providing them with greater flexibility and access to financial resources. Bill Pay is set to streamline the process of managing outgoing payments, thereby simplifying administrative tasks for business owners.

Adrienne Begbie, Managing Director of Prospa, gave some insights regarding the automation of some business tasks. "Being a small business owner in today's economy is tough," Begbie continues, "Our customers often tell us that balancing business development with business administration is one of their biggest pain points. The introduction of Bill Pay will give business owners back some valuable time so they can focus their attention on the areas they're most passionate about."

This development coincides with increased scrutiny of the banking sector by the Commerce Commission, which has emphasised the need for greater competition. Prospa positions itself as a key player in New Zealand's digital economy and tech ecosystem through these initiatives.

Karishma Kumar, Co-founder of Cognitiv, a tech company that has utilised Prospa's services, highlighted the benefits of having access to these tools. "As a tech company, we appreciate the innovative tools that Prospa offers its customers. The tech that Prospa uses allows us to manage our cashflow effectively, giving us the confidence to say yes to big projects. We were also able to invest in hiring talented people and this was a pivotal moment for our business."

The updated lending options feature extended terms for larger-sized loans and increased credit limits of up to $500K. These changes are designed to make repayments more manageable for businesses and allow for free unlimited extra repayments to reduce interest costs.

As Prospa celebrates its fifth year in the New Zealand market, these measures are part of its broader strategy to innovate within the SME lending sector, using technology to simplify cashflow management for business owners.