3 reasons why you should consider an alternative lender for your next small business loan

Looking for a small business loan to grow your business? Have you considered an alternative lender?

There are various stages in the life of a business when additional funds may be needed to help the business grow – whether it’s to invest in new equipment or machinery, rent new and larger premises or simply to assist with cash flow during a quiet period.

But the prospect of obtaining finance through traditional means can be daunting – countless hours on the phone and in meetings with the bank and reams of paperwork to complete. The time commitment alone can put you off.

That’s where alternative lenders step in – often providing an intuitive online application process, with minimal paperwork and a fast approval process. As an alternative lender, Prospa’s application process indeed involves no paperwork and there’s the potential to have funds – anything from $5000 to $150,000 – in your account within 24 hours.

Alternative lenders are agile

By primarily operating online, alternative lenders have flipped the traditional borrowing process on its head. This enables us to focus on speed, flexibility and personal service – it keeps us agile, making us an ideal match for the agile environment of small business.

What’s more, rather than focusing on the business owner’s personal assets, we kick-start the lending process by assessing a business’s overall health and growth potential.

Alternative lenders are fast

Alternative lenders typically offer a quick online application process. When working with Prospa, for example, you’ll typically receive a same day response and, if successful, the funds could be in your account in as little as 24 hours.

For loans up to $100,000, no asset security is required to access the money, however Prospa does require a personal guarantee. As long as you follow your loan obligations (as detailed in your loan contract document), asset security will never be required. For loans of over $100,000, Prospa generally takes a personal guarantee and security in the form of a charge over assets.

Alternative lenders understand you

Alternative lenders inherently understand the dynamics and pressures that come with running a small business – because they are one. That common ground means we have a deep understanding of your challenges and your goals.

The result? Better, faster outcomes, and more personal service.

If you’re looking to expand your business, buy new equipment or simply manage your cash flow during a quiet period, find out how Prospa can help. Get in touch with one of our small business lending specialists on 0800 005 797 to discuss your options or find out more.

The information on this website is provided for general information only and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from financial, legal and taxation advisors. Although every effort has been made to verify the accuracy of the information, Prospa, its officers, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy, or omission from the information or any loss or damage suffered by any person directly or indirectly through relying on this information.

6 times you might need a small business loan

Running a small business comes with many ups and downs, as well as many occasions that may require a bit more cash than you have at your fingertips.

Here are six scenarios where a small business loan may be just what you need to keep your small business moving.

1. You need more space

If your employees are using the table in the kitchen as a workstation, or your office is now doubling up as a stock room, you could probably do with a little more space. But just because you’re ready for expansion doesn’t mean you necessarily have the cash on hand to make it happen. Whether the answer is a refit, full-on renovation or even a move to new business premises, a small business loan could provide quick funds to expand the operation.

Remember to calculate the financial benefit when deciding whether to go ahead or not. For example, will the renovation or refit enable you to sell more stock or take on more clients? Or will it just make room for Molly the office dog’s bed? Speak to your financial advisor who can help you crunch the numbers.

2. You need more stock

Buying products that will enable you to provide a service and improve your offering is a crucial part of doing business. Every business needs an up-to-date inventory, and if you’re a seasonal business, you’ll want all your stock in place before peak sales periods. If your turnover is dependent on the stock you’re carrying, but you don’t have the capital to invest, then a small business loan could be worth considering to bridge the gap.

3. Opportunity knocks

Many opportunities emerge for small businesses, and knowing which ones to chase, and which ones to pass by, is a skill in itself. If you have completed your due diligence and believe an opportunity is worth grabbing, but you don’t have the cash flow on-hand to do so, a small business loan could be the answer. It provides a simple cash lump sum that puts business owners in control of how they respond to opportunities.

4. You need to recruit to grow

Small business owners often wear many hats, but sooner or later juggling your supply channel, bookkeeping, marketing, customer service and tea-making all by yourself can take its toll. Ultimately, if you’re going to grow your business, you will need time to give the operation the attention it deserves. Employing staff can free you up to do just that. If there’s a clear connection between the hiring decision and an increase in revenue, then a small business loan could make good business sense.

5. Your premises need a makeover

First impressions count a lot in business, and if you’re a cafe with shabby furniture, you may be losing customers based purely on your interiors. Alternatively, if you’re an office-based operation, your poor ergonomic set up may be negatively affecting your employees’ productivity and/or your ability to attract star candidates. A small business loan could help give your small business the face-lift it needs.

6. You need more customers

Build it and they will come? Not quite. You could have the best product and service in the world, but if no one knows about it, you’ll not sell a bean. An investment in marketing is critical to attract customers. A small business loan could help you fund a promotion or marketing campaign to acquire new customers.

If your business needs funds for opportunity, growth or cash flow support, get in touch with one of our small business lending specialists on 0800 005 797 to discuss your options, or find out more.

The information on this website is provided for general information only and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from financial, legal and taxation advisors. Although every effort has been made to verify the accuracy of the information, Prospa, its officers, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy, or omission from the information or any loss or damage suffered by any person directly or indirectly through relying on this information.

Customer success story: The Rib House

The Rib House owner Kurt Jacks quickly learned that operating a family-run restaurant costs more money and time than he expected. After having trouble securing assistance through traditional lenders, Kurt found a Prospa Small Business Loan to dish up the vital support he and his family needed to grow the business.

Southern style ribs in Auckland

Kurt Jacks wanted to bring authentic Southern style ribs to the people of New Zealand. So, he and his family opened The Rib House, a family-friendly eatery in the southeast Auckland suburb of Pakuranga.

And while Kurt might be the owner of The Rib House, he says his wife Althea is the boss. They work alongside their two sons and daughter to cook up barbecue food for customers six days a week.

The challenges of running a restaurant

No matter how carefully crafted the budget, finding the resources to fund the equipment, ingredients, and other overheads and improvements associated with opening a new restaurant can be tough.

“We found that when you start a small business, it sucks a lot of money, more than we anticipated,” he says. “So, we needed a bit of help.”

In addition to a lack of capital, another thing the Jacks family didn’t have was time to waste. Restauranteurs put in plenty of hard yards outside of opening hours, cleaning and prepping for the next day’s rush. That leaves precious few hours for administration.

“Time is the most challenging thing,” he says about running a new restaurant. “We seem to run out of time.”

Kurt needed a small business loan, but the challenges involved with applying for a loan with traditional lenders meant his menu of options was dwindling.

But that all changed when Kurt saw an online ad for Prospa.

Easing the stress with a small business loan

Kurt decided to give Prospa a try. He quickly found it was the missing ingredient in his recipe for success.

“We went online and put our application through, and we got a call the same day,” Kurt says. “Tristan was his name, and he was awesome.”

Tristan, a Prospa Senior Loan Consultant, explained the options available to Kurt and his family. The Rib House owner realised a Prospa Small Business Loan was precisely what he needed to take his restaurant to the next level, with a simplified and streamlined application process.

“The feature I like the most was the ease with which the whole transaction went through. It was just smooth; it was just easy.”

What’s next for The Rib House?

The funds from Prospa were immediately put to good use, doing necessary upgrades and renovations in the kitchen.

“I would definitely recommend Prospa to my friends and family, and I already have.”

Whether it’s growing your business, funding an opportunity or just covering cash flow, find out how Prospa can help. Talk to one of our business lending specialists on 0800 005 797 to discuss your options, or find out more.

The information on this website is provided for general information only and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from financial, legal and taxation advisors. Although every effort has been made to verify the accuracy of the information, Prospa, its officers, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy, or omission from the information or any loss or damage suffered by any person directly or indirectly through relying on this information.