Prospa reshapes SME lending with data-driven decisions
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Leveraging tech allows New Zealand small businesses faster access to capital, while advisers gain more space to support clients
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When a new opportunity arises, small businesses need to move fast – sometimes faster than their access to capital allows. Yet for decades, the loan process moved at a crawl, weighed down by paperwork and a fixation on the customer’s personal property rather than business performance.
That gatekeeping model is giving way to a new era of data-driven lending, in which a company’s cash flow and day-to-day performance matter more than its owner’s property deeds. Powered by real-time financial data and open banking, lenders like Prospa are reshaping how small and medium-sized enterprises access capital – faster, more fairly and in ways that reflect the true health of a business rather than just the equity behind it.
“Technology has changed the SME lending landscape in New Zealand,” says Adrienne Begbie, managing director of Prospa in New Zealand. “The biggest shift has been moving away from asset-based lending models – where the first question was always, ‘Do you own a house?’ – to a data-driven model where we ask first, ‘How’s your business performing?’ ”
This transition reflects a deeper understanding that business success shouldn’t be contingent on personal property ownership up front. Instead, lenders are focusing on cash flow patterns, transaction history and operational metrics that provide a clearer picture of business viability.
Begbie explains how this approach benefits both lenders and borrowers: “We’ve seen the rise of cash flow lending. By drawing on enriched data sources like open banking and bank account feeds, we can instantly assess the business’s performance, credit score and behaviour in one single view.”
Prospa is New Zealand’s small business online lending specialist providing market-leading capital products and solutions to help Kiwi small businesses grow and prosper. Established in 2012 in Australia and 2018 in New Zealand, Prospa ensures applications are simple and funds can be accessed within 24 hours. Its cash flow products and services allow small businesses to grow and take advantage of opportunities to run their businesses or help them pay for goods and services.
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“We understand the power of human connection, because our business is built on it”
Adrienne Begbie,
Prospa New Zealand
Speed meets accuracy The traditional lending process has been notoriously slow, with approval often taking weeks or months. This timeline doesn’t align with the fast-paced nature of modern business, where opportunities can disappear quickly and cash flow needs are immediate.
Modern technology addresses this mismatch by streamlining the key stages of the lending process. Real-time data analysis enables lenders to make informed decisions within minutes rather than weeks, while maintaining accuracy and risk assessment standards.
“In a world where you can order and get groceries delivered the same day, waiting weeks for business funding approval doesn’t make sense,” Begbie says. “Our business lending application can be completed online in as little as 10 minutes.”
The improvement in speed extends beyond just application processing. Secure bank verification technology allows lenders to access real-time financial data directly from business accounts, eliminating the need for manual document compilation and verification processes.
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Published 29 Sep 2025
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Copyright © 1996-2025 KM Business Information NZ
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“Technology isn’t going to replace advisers – it’s going to make their job even more efficient and face-to-face time more valuable to their small business clients”
Adrienne Begbie,
Prospa New Zealand
The engine-room economy Small businesses form the backbone of the economy – accounting for 97% of all local enterprises in New Zealand – yet they face persistent challenges in maintaining adequate cash reserves. Research indicates that a significant proportion of SMEs operate with less than three months of cash reserves, leaving them vulnerable to unexpected expenses or seasonal fluctuations.
Worse, poor cash flow can also limit the ability of SMEs to
take advantage of any improvements in the economy – they cannot invest in expansion, hire additional staff or take advantage of growth opportunities in a timely manner. The ripple effects extend throughout the entire economy over time.
“Small businesses are the engines powering our economy, but almost 60% of SMEs have less than three months of cash reserves,” Begbie says. “No matter how successful, businesses will always need fast access to working capital to keep the engine humming.”
Technology is addressing this challenge by giving business owners greater control over their access to capital. Rather than SMEs using funding solely as an emergency measure, non-bank lenders such as Prospa are leveraging technology to help them better plan strategically for things such as seasonal costs, inventory purchases or equipment investments that drive growth.
Time-poverty solutions Small business owners consistently cite lack of time as one of their biggest challenges. They juggle multiple responsibilities, from operations and sales to accounting and strategic planning. Traditional lending processes only added to this burden with extensive paperwork and lengthy approval procedures.
Modern lending platforms are designed with this time constraint in mind. Automated processes handle much of the administrative burden that previously required manual intervention by business owners. This automation extends beyond just application processing to include ongoing account management and payment scheduling.
“The bigger role of technology is in giving business owners something they never have enough of – time,” Begbie explains. “Our technology enables that, allowing customers to manage their cash flow from their phone and make funding decisions on their terms.”
This shift towards mobile-first solutions reflects broader consumer expectations shaped by digital banking and e-commerce experiences. Business owners expect the same level of convenience and control in their commercial lending relationships as they experience in their personal financial services.
Balancing automation with empathy While technology drives efficiency, the lending decision remains deeply personal for business owners. Their funding needs are often tied to significant business decisions, growth plans or challenging circumstances that require understanding beyond what data alone can provide.
Successful technology-driven lenders recognise this balance and maintain human touchpoints throughout the process. Business development managers and advisers continue to play essential roles in understanding customer needs and providing personalised support.
“We understand the power of human connection, because our business is built on it,” Begbie says. “Our team of BDMs and lending specialists are dedicated to working closely with advisers and their customers to understand their unique needs and offer personalised support.”
This human element becomes particularly important in the adviser channel, which provides a significant portion of business referrals. Approximately 60% of Prospa’s customers are referred by advisers who offer that personal relationship and understanding that technology cannot replicate.
The adviser evolution Technology is set to radically change the day-to-day tasks of advisers even further as agentic AI becomes more widely used. One global study estimates that, by 2028, 38% of organisations will have AI agents as team members within human teams. Blended teams – where humans and AI agents collaborate – will become the norm, driving productivity and innovation. One of the key expectations around this change is a 65% increase in human engagement in high-value tasks.
For advisers, this will mean fewer administrative tasks and more focus on relationship building and strategic guidance.
“Technology isn’t going to replace advisers – it’s going to make
their job even more efficient and face-to-face time more valuable to their small business clients,” Begbie says. “With the rise of technology, advisers can stop being data managers and instead focus on being financial partners.”
This evolution allows advisers to add more value to their client relationships by focusing on insights and strategy rather than administrative processes. Technology handles the data analysis and processing, while advisers interpret results and provide contextual advice based on their understanding of each business.
Future horizons Looking ahead, the integration of open banking data will provide even richer insights into business performance and financial health. This deeper data access will enable more sophisticated lending products tailored to specific business needs and circumstances.
“As open banking becomes more widespread, we will be able to get an even clearer, more holistic view of a business’s financial footprint, allowing us to create more personalised, complex and flexible products tailored to support small businesses,” Begbie says.
The technology evolution also extends beyond private sector initiatives. Government support through streamlined regulations and digital infrastructure investment could accelerate SME growth across the country.
“The government can play a role in driving SME growth by creating a more streamlined regulatory environment, reducing the red tape that consumes a disproportionate amount of a small business owner’s time,” Begbie explains. “They can also invest in digital infrastructure and skills training programs to help business owners get comfortable with the tools needed to succeed in a digital-first economy.”
For advisers, the rise of data-driven lending means less time buried in forms and more time guiding clients towards opportunities. The shift helps close the gap between how quickly businesses move and how slowly capital once followed. For New Zealand SMEs, this evolution means funding that reflects how their businesses actually run, and the chance to leverage growth in a timelier way.
“Our goal is to ensure that our advisers are fully equipped to participate in the industry’s evolution and continue to deliver innovative solutions to their clients,” says Begbie.
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Source: Reserve Bank of New Zealand, Registered banks and non-bank lending institutions: Sector lending – C5
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Source: Reserve Bank of New Zealand, Registered banks and non-bank lending institutions: Sector lending – C5
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Source: Capgemini Research Institute, Rise of Agentic AI: How Trust is the Key to Human-AI Collaboration report
rise in creativity
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increase in human engagement in high-value tasks
Key expected benefits of effective human-AI collaboration