Small business alternative lender Propell grew its client base to more than 2000 small and medium-sized enterprises in a record-breaking May – placing the company well ahead of its own growth forecasts.

The additional clients represent a 428% increase in the client base compared with the previous corresponding period, and places the business on track to deliver a sixth consecutive quarter of QOQ growth in excess of 30%.

The company also saw a record result in lending, with more than $1.2 million in new originations, a 34% increase on April’s numbers and 17% higher than the previous record, set in March this year. Average loan sizes grew to over $20,000 during the month as well – a 20% improvement on the previous month and enough to place Propell nine months ahead of its estimates at IPO.

Source: Propell ASX Annoucement 2 June 2022

Launch of Business Loans

Propell attributed some of the growth to the launch of its new Business Loan products, which allow customers to borrow at least $5000 and up to a maximum of a quarter of a million, over a fixed 12-month term.

These fixed amount loans differ from Propell’s existing credit line products, which customers can use to access between $2000 and $250,000 over six or 12 months and only pay interest on the capital actually used.

These business loans are more competitively priced than the company’s traditional credit lines, Propell said, but use the same underlying proprietary technology to assess and approve products. 

Currently, Propell is only offering unsecured business loans but plans to roll out secured products in the future.

“With the addition of Business Loans as a new product, our customers now have more choice and access to capital to operate and grow in the way they want,” the company said in a statement.

“Customers now have increased flexibility with existing Line of Credit facilities, or fixed-term loans at competitive rates with our new Business Loan product.”

Propell CEO Michael Davidson will be holding an investor briefing tomorrow, Thursday 9th June at 1pm (AEST), where he will discuss how the company is successfully disrupting the banks with its innovative lending model and how it has exponentially grown its user base and revenues in the past year. Click here to book in.

Reach Corporate provides Corporate Advisory Services to Propell Holdings Ltd and has been engaged by them to manage their investor communications and may receive fees for its services.

Sources:

• ASX Announcement 2 June 2022, Propell delivers record month in Customers and Lending 
• ASX Announcement 20 May 2022, Propell Launches Business Loans