2017 Hot List Recipient

2020 Hot List Recipient

2021 CEO of the Year

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Unshackling finance for SMEs

When Adrienne Begbie first got the call from across the Tasman Sea that small business lender Prospa wanted her to help the company launch into the New Zealand market as its managing director, she was at something of a loss. “I’d never actually heard of them, because obviously, they weren’t here,” she recalls. But when she started to do her due diligence, she immediately recognised that Prospa was going to break the mould in a way that would not only make a big difference to SME customers but also bring more dynamism to the New Zealand lending market as a whole. “I just fell in love with the business – the people, the passion and the technology. There was no one serving small businesses in New Zealand

At that time, banks were the only option for most small businesses that needed finance. However, banks often took weeks to approve loans, causing delays in businesses accessing much-needed funds. Prospa uses real-time financial data to keep track of customer success and can quickly see the effects that a cash injection has on the bottom line. “If they are buying another business or adding on to the business or getting another food truck … we can see how their business is actually improving [in real time].” The result for many SMEs is business growth, which builds loyalty, with 70% of customers coming back for more funds in the future as their business scales up. It’s a winning formula that has ushered in growth that Begbie calls “extraordinary” – the New Zealand operation just celebrated its fifth birthday with total lending to date of more than $500 million to nearly 10,000 small businesses. “We’ve helped a lot of customers and continue to do so as we grow month on month … we do business lending like no one’s ever done it before.”

This put demand into overdrive as advisers also saw the value of Prospa’s offerings, to the extent that around 70% of its business in New Zealand now comes via the adviser channel. “It’s a really high percentage – people want to work with trusted advisers,” says Begbie. “Trusted adviser networks and their approval rates are really high, and our conversion rates are high as a result, because there’s a real need for our product out there.” The COVID-19 lockdowns caused a lull in the growth of Prospa’s loan book but not in Begbie’s respect for the company’s approach. “Everyone, including myself and the CEO, was on the phone to our small business customers. We worked with every single customer through that period, [asking them] what did they need: Did they need to stop payments or push them out? Did we need to change the terms?” The period was busy and stressful but reinforced to Begbie that Prospa was passionate about supporting its customers through both good times and bad.

Applying for a business loan at Prospa is quick and simple because it understands that small business owners are time-poor. Generally, there is a 10-minute phone call, and then forms are signed electronically. “People talk to us; it’s not paper-based,” says Begbie. Once the forms are complete, money can be transferred the same day. “Technology is our key … the whole product is around [being] simple, speed, and just making it so easy for small businesses to get lending.” Prospa’s Australian parent company was co-founded in 2012 by Greg Moshal and Beau Bertoli, who were small business owners themselves but were unable to get the kind of loan they needed. So, standing in the customer’s shoes is almost a part of the corporate DNA. “We look for the customer need; it really is one of our key goals as a business to be customer obsessed, and we really are,” Begbie says. “We listen to what those customers want, we listen to what they need, and our products evolve with that.” One example might be the Prospa Business Line of Credit, launched in New Zealand two years ago. It was clear that some businesses needed extra support in navigating the pandemic economy. This need has persisted post-pandemic as high interest rates and weak consumer sentiment continue to exert pressure. “[The Prospa Business Line of Credit] is for customers if they’re investing in the business, but also just in case. With what’s happening, we all know how tough it is out there with the recession and the cost of living – people are looking for funding.” Customers only pay interest on the amount they draw from the Prospa Business Line of Credit, but the facility is there as an important backstop for businesses amid uncertain economic conditions. “They’ve got the money there. It’s hugely successful, especially through the adviser channels – about 55% of our business through the adviser channel is for the Line of Credit product.” Prospa’s innovations extend beyond products to technology, one example being the Prospa App now available to both new and existing customers. The app gives business owners a simple way to manage their cash flow so they can focus on running their business.

Spotlight

Looking back, it’s clear there was a need for Prospa’s products in New Zealand. But in 2019, when Begbie had just taken the reins, the level of demand here was an unknown quantity. “We started firstly with our direct channel … just to make sure it worked out, that the contracts were right, our product was right, and we were fit for purpose in New Zealand,” says Begbie. The aim was to hit $1 million worth of lending in the first three months and then pause for review. But when this target was smashed around four weeks after launch, Begbie knew her instincts had been on the mark. “That’s when we launched to our adviser channel.”

Prospa is a leading fintech company with a commitment to unleashing the potential of small business in Australia and New Zealand. It does this through an innovative approach to developing simple, stress-free and seamless financial management products and services. Since 2012, Prospa has provided more than $4 billion of funding to support the growth and operations of thousands of small businesses. Prospa works with more than 16,000 trusted brokers, accountants and aggregator partners to deliver flexible funding solutions to their clients.

Company Profile

Years operating in New Zealand

$4bn in total, $500m+ in NZ

Amount lent

4.7/5

Average NZ Trustpilot review score

6,000+

No. of NZ customers

60+

No. of awards received by Prospa companies

Bio

Spotlight

Milestones

Media

Accolades

Company Profile

Years in the industry

20+

Based in

Auckland, but grew up in Greymouth in the South Island

Career highlight

Five years as managing director of Prospa New Zealand

Adrienne Begbie

Managing director of Prospa New Zealand

Adrienne Begbie looks back over five successful years since Prospa launched in New Zealand – but also has her eye on more growth ahead

Read on

“We’ve helped a lot of customers and continue to do so as we grow month on month … we do business lending like no one’s ever done it before”

Adrienne Begbie, Prospa New Zealand

Karen Adams

President and CEO at Fundserv

Before becoming CEO of Fundserv, Karen Adams held a variety of leadership roles around the world – and she learned that listening and understanding are key to both providing service and developing talent

Read on

Karen Adams

President and CEO at Fundserv

Career highlight

Read on

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The value of speed, flexibility and simplicity

Published 04 Jun 2024

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“We’ve got pretty aggressive growth goals for New Zealand”

Adrienne Begbie, Prospa New Zealand

like Prospa. We saw an opportunity to fill that gap and provide tailored financial solutions to support their growth and success,” she says.

Keeping it local but with lessons from abroad

The first five years have been a major success for Prospa New Zealand, but Begbie won’t be resting on her laurels any time soon. “We’ve got pretty aggressive growth goals for New Zealand.” Next in the pipeline is a new tool for advisers that will improve and ease the experience of writing business loans. The tool will leverage the adviser channel and help them reach that wider market, but it also acknowledges the importance of the channel to non-banks like Prospa. “Our advisers are our biggest channel, and we get the most business through them,” Begbie says. Business lending via non-banks has steadily increased over the five years that Prospa has been operating in New Zealand, from around 4% of all business lending at the start of 2019 to nearly 7% today. Begbie says Prospa helped change the lending landscape for SMEs in Australia. It’s clear that she sees the same potential for New Zealand. “We are still just scratching the surface,” she says.

Potential for future growth

2019

2022

2023

2016

2019

2024

Launch of Prospa New Zealand. Adrienne Begbie appointed managing director

2019

Prospa hits $500 million in originations in NZ. Launches Prospa App in this market

2023

New line of credit product launched in NZ

2022

Five-year anniversary of Prospa New Zealand

2024

Milestones

2019

2022

2023

2016

2019

2024

Launch of Prospa New Zealand. Adrienne Begbie appointed managing director

2019

New line of credit product launched in NZ

2022

Prospa hits $500 million in originations in NZ. Launches Prospa App in this market

2023

Five-year anniversary of Prospa New Zealand

2024

Milestones

If Prospa New Zealand seems to be hitting its stride in terms of products and tools faster than many of its rivals, it’s partly because of its experience in Australia. Its app has been hugely successful across the ditch, which was one reason why Prospa was confident Kiwis would love it too. But Begbie is careful to ensure the New Zealand operation understands the important distinctions between the two markets. She says a key difference is that Kiwis love a bit of banter before getting down to business. “If you [are talking on] a Monday, it’s 'what did you watch on the weekend? Did you watch the rugby? Did you watch the netball?” Getting to know the customer better sits well with Prospa’s natural inclinations, and Begbie says the background stories to many businesses are fascinating. “It’s building a rapport and really having a connection. Understanding the business is something I love in our workflows. People went into business because they were passionate about something, and they wanted to do something, and the stories that you hear … are just incredible. They’ve got so much passion, so much drive.” New Zealand and Australia have similar profiles in terms of SME statistics. SMEs make up 98% of Australian businesses and contribute 15% of the country’s GDP, while in New Zealand SMEs comprise 97% of all businesses and contribute a quarter of GDP. Both nations are highly entrepreneurial, and both have experienced a surge in SME numbers in the post-pandemic period. SMEs are generally defined as firms employing fewer than 20 people, and the numbers in New Zealand are strikingly large when the self-employed are included. Stats NZ business demography statistics show that there were over 587,000 SMEs in 2023, with steady growth even during the pandemic years. “There are a lot of small businesses out there – [but] there’s a lot that still don’t know about us,” says Begbie.

2019

2022

2023

2024

Launch of Prospa New Zealand. Adrienne Begbie appointed managing director

2019

New line of credit product launched in NZ

2022

Prospa hits $500 million in originations in NZ. Launches Prospa App in this market

2023

Five-year anniversary of Prospa New Zealand

2024

Milestones