Country: AustraliaProspa1
Year: December, 2012
 
Founded in 2012, Australian-owned platform Prospa provides business loans to Australian small business. It provides quick online applications within 10 minutes, coupled with its proprietary technology platform, allowing small business access to short-term capital between $5,000 and $250,000 within 24 hours.
Recently Prospa announced a partnership with Westpac. The deal is a direct-working model rather than through a venture capital arm and involves referrals from a Westpac-hosted website to Prospa’s loan application site. The company has also linked up with listed broker Australian Financial Group.
Prospa was Australia’s 2015 Deloitte TechFast 50 winner.

Concept

  • Prospa lends amounts between $5000 and $250,000 to customers underbanked & unserved  by banks (because small loans are generally not profitable for banks)
  • With new funds coming in, Prospa has actively reached out for business partners. Deals with Westpac and Australian Financial Group allow the platform to expand its SME loan business and brand influences.
  • The partnership is beneficial for both Prospa & Westpac: 1) Banks have more market share in SME sector and look for innovative products. 2) The partnership will result in co-branded marketing and online platforms, with Prospa taking all the financial risk. 3) Westpac gets the referral fee for each bank customer that takes out a loan from Prospa.

Consumer Benefits

  • Fast: Quick online application usually takes just 10 minutes and receives a decision within 60 minutes. 90% of customers receive their funds within 1 day.
  • Low cost: Unlike traditional business loans, the Prospa Business Loan details the total amount payable upfront inclusive of any interest, fees or charges. It is then broken down into either a daily or weekly repayment figure.
  • User friendly: Loan calculator estimates daily repayment based on customized fund amount & repayment period. Meanwhile the interest rate would typically fall each time the borrower successfully paid off a loan. Prospa currently enjoys a customer satisfaction rate at 95%.
  • Advanced Scoring System: Data-driven ProspaScore analyses over 400 data points to assess the health of a business and determine approvals and rates, by connecting bank accounts into the platform through secure mechanisms.
  • Bank-backed credibility: The platform has already formed a partnership with one of “the Big Four Bank” Westpac. It has also done a similar deal with listed broker Australian Financial Group which is selling Prospa loans.

How to use it

  • Apply Online: within minutes to apply through a short and quick application .
  • Process and Receive Approval: Normally the approval will get decision within hours.
  • Receive Funding: 90% of users get funded within 1 day.

Illustration

(Interview with Joint-CEOs, Beau Bertoli and Greg Moshav from Prospa, the winner of the 2015 Deloitte Technology Fast 50 award in Australia. )

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