Small business lender Prospa has moved to diversify its business by acquiring commercial finance broker Loanezi.

Prospa will take over management of Loanezi’s 1000 small business customers and has hired Loanezi’s founder and managing director Renee Tocco. It did not disclose the purchase price.

Prospa chief revenue officer Beau Bertoli said in a statement that Tocco’s appointment would strengthen the company’s broker team.

Prospa’s loan origination revenue has been up and down, and it will welcome the annuity revenue from the broker business.

Revenue for 2020/21 was A$117.7 million – down 17.1 per cent from the previous year.

The loan book fell from a peak of $464 million in the March quarter last year to a low of $339 million in the September quarter. Growth resumed in the March quarter this year and the book reached $427 million by the end of June.

The company had a particularly weak December quarter, when it originated just $20 million. By the June quarter this year demand had recovered and it originated a record $183 million.

Prospa reported a loss of $9.5 million, compared with a loss of $24.9 million in 2019/20. The improved bottom line result was due to a much lower loan impairment expense, lower funding costs and cuts to operating expenses and employee expenses.