Propell Holdings hits record high in May 2022 with customer and loan growth
Propell Holdings (ASX:PHL) had a record month for May 2022 with more customers than ever using its financial platform and lending reaching an all-time high.
The number of customers using Propell’s small and medium business financing platform exceeded 2,000 for May 2022, an increase of 428% from May 2021 levels and 20.1% from the March quarter of this year (Q3 FY2022).
Propell expects this customer trajectory to continue and says it is on track to achieve its sixth consecutive quarter of growth above 30% quarter over quarter.
Meanwhile, lending is also at record highs, with May 2022 delivering over $1.2 million in new creations.
This was up 34% from April 2022 and 17% from March 2022, the previously largest month.
In Lending Origins, Propell says it’s on track for a record in the fourth quarter of fiscal 2022.
Driving Propell’s growth has been the launch of a new line of credit product as well as improved platform finance and customer sentiment.
Additionally, the company noted that May 2022 also saw a 20% increase in average loan size, which it says is a “critical metric” to scale the business.
Line of credit products
Propell’s six-month and 12-month line of credit products are enjoying “continued success.”
And based on customer feedback, the company launched the Business Loans product on its platform.
It is a fixed amount in dollars, over a specific period of time and can be used for specific business purposes such as the purchase of assets or equipment.
Business Loans leverages Propell’s existing “credit decision engine” and broader loan management system.
“Clients now enjoy increased flexibility with existing lines of credit or fixed-term loans at competitive rates through our new business loan product,” the company said.
Capital raising to strengthen the loan facility
To facilitate increased lending capabilities, Propell is raising $2.2 million via a non-waiver right offering at $0.058 per share.
The offering closes on June 20, with funds raised to drive organic growth as well.
Propell says its multi-product platform meets all the financial needs of Australian small business owners.