Prospa reports improved demand from SMEs

Prospa reports improved demand from SMEs

The non-bank lender’s FY20 results revealed that loan originations saw an uplift in June, following a quiet few months due to COVID-19.

Prospa has announced its preliminary unaudited results for the full year to 30 June 2020, in which it said loan originations increased in June compared with April and May.

According to the lender, this reflects renewed customer demand from SMEs, an adjusted risk appetite and the full rollout of the Coronavirus SME Guarantee Scheme supported loans.

Loan originations in June 2020 were $12.8 million for the month, up from $6.2 million for May and $2.9 million for April.

The considerably lower loan originations in April and May reflected the early impacts of the severe economic downturn associated with the coronavirus pandemic.

According to Prospa’s results update, the current period is evidence of the resilience of small businesses amid some of the most difficult trading conditions they have had to face.

Commenting on the results, Prospa CEO Greg Moshal said: “Australian small businesses are resilient. Despite an ongoing challenging environment and continued uncertainty, we are now seeing small businesses across all sectors planning for their recovery.”

Prospa has continued to provide customers with COVID-19-related relief packages, which typically consists of full deferrals of six weeks or partial deferrals of 50 per cent of the typical repayment, with interest on the outstanding principal during the full or partial deferral periods being capitalised.

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Source: Prospa reports improved demand from SMEs – Mortgage Business