In a bid to provide relief to small and medium enterprises (SMEs), Prospa, the fintech firm, has unveiled its special End of Financial Year (EOFY) offer. The deal, launched to mark the onset of the new financial year, offers business loans with no interest or repayments for a span of four weeks, extending until 31 March 2024.
The announcement comes at a time when SMEs face significant challenges, with increasing worry over labour costs and supply chain issues. The most recent survey conducted by RFI NZ SME Banking Council showed that 67% of these businesses expressed concerns over supply chains, whilst 63% were troubled about rising labour costs.
Prospa envisions that the dawn of a fresh financial year will introduce new possibilities and optimism for advisers and New Zealand's SMEs. As the EOFY approaches, the company expects to see an uptick in loan applications, with 57% of SMEs indicating they need to invest in their business to help generate future cash flow. Prospa's EOFY offer is aimed at paving the way for success for these small business owners.
Adrienne Begbie, Prospa's Managing Director for New Zealand, commented on the trends they usually observe at the dawn of a new financial year. "We generally see an increase in applications for funding around the end of the financial year as business owners are looking for growth opportunities, particularly across professional services, retail and hospitality sectors." She also mentioned the crucial role advisers play, "With the majority of loan applications coming through advisers, Prospa remains well positioned to helping advisers diversify and grow their business. Now is the perfect time for advisers to reach out to their small business clients to help them get ahead this financial year."
The EOFY offer also extends an opportunity to advisers to join Adrienne Begbie and the Prospa NZ team at the Better Business Conference scheduled in Auckland for 20th February, or the NZ Financial Services Group (NZFSG) roadshow commencing from 22nd February. Attendees will gain insight into commercial lending and learn how to maximise the EOFY offer.
It has been another tough year for SMEs and Prospa’s EOFY offer could provide the financial relief and opportunity for growth that many businesses have been yearning for.