Propell Holdings (ASX:PHL), an Australian financial platform, is looking to expand its lending platform after increasing the company’s existing wholesale capacity. The facility, held with existing provider Altor Capital Management, will be increased by 50% to $7.5m, bolstering Propell’s momentum in new lending.

Following solid results in Q4, the firm anticipates considerable growth in the coming quarters. Given the company’s recent strong expansion in the lending book, gaining access to a larger wholesale facility is critical to its capacity to develop further. Propell is also in talks with other third-party wholesale lenders about expanding the facilities available to support loan book development in the long run.

The number of consumers utilizing its platform has already surpassed 2,150, representing a 30% rise over the previous quarter and a 320% increase over the PCP. Lending volumes have increased to $3.4m, a +35% rise year on year and a >320% increase on PCP. The loan volumes in May and June were the highest in the company’s history.

The average loan amount on its books has also climbed to just under $20,000, representing an increase of +40% QoQ and >278% on the PCP.

Towards A Maiden Profit

Propell’s financing platform is aimed at Australia’s 2.4 million SMEs. According to the business, the latter are disgruntled with traditional banks’ delayed and complex loan processes and paperwork. The platform serves a potentially vast addressable market, as small firms account for 97% of all enterprises in Australia.

Propell thinks that the future of finance is digital, and that small companies are looking for alternative digital financial solutions. Propell is well-positioned for this rapid change and has developed technology that allows it to provide a top credit decisioning engine and a platform that can automate and streamline the lending process.

Its platform aims to improve small companies’ cash flow and financial well-being by combining various finance products and services, such as financing, payments, and forecasting tools, under one roof. Propell is fast expanding, and the firm just completed a $2.8 million convertible note cap raising as it prepares to turn a profit.

According to the firm, the convertible note is the critical missing element in attaining cash flow breakeven and profitability as soon as feasible, which it believes might happen by the end of CY23.

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