How fast will I get a decision?

Under normal circumstances, we can often provide a response in one hour – as long as you apply during standard business hours and allow us to use the advanced bank verification system link to instantly verify your bank information online. If you choose to upload copies of your bank statements we can provide a decision in as little as one business day.

How fast will I get the money?

Under normal circumstances, if you apply before 4pm on a business day and your application is approved, it is possible to have money in your account the next business day.

How much can I borrow?

The total amount of your loan will depend on the specific circumstances of your business. We consider a variety of factors to determine the health of your business and based on this information, Prospa may be able to provide you with funding. Our products offer funding up to $500,000.

How do you charge for a Prospa business loan?

When you apply for a Prospa Small Business Loan or a Prospa Plus Business Loan, we will assess the risk profile of your business in accordance with our lending policies and provide you with a customised offer including loan amount, term and interest rate. Interest rates vary based on things like your industry, how long you’ve been in business, and the health of your cash flow.

With our Small Business loans, the only fee you will incur is an origination fee. There’s no compounding interest and no additional fees (as long as you make your payments on time). You’ll also know exactly how much you need to pay and when from day one.

A Prospa Business Line of Credit has a weekly service fee.

How do repayments work?

To help you keep track we provide a repayment schedule that fits in with your cash flow cycle – either daily, weekly or fortnightly. These are automatically deducted from your nominated business account.

How does the 4 weeks no repayment option work?

When you are approved for a Prospa Small Business Loan or a Prospa Plus Business Loan, you can choose to delay your first repayment for between 1 and 4 weeks if you wish. Some businesses find this provides added flexibility. If you do choose to delay your repayments, the loan term will be extended. For example, if you choose the 4 week option, your term will be extended by 4 weeks at the end.

In addition, interest will accrue from the day you settle until the end of the loan term. The interest that accrues during the no repayment period is capitalised and included in the total interest expense. This then forms part of the regular fixed daily or weekly principal and interest repayments that are due once the no repayment period ends.

If you have any questions, please speak to one of our friendly loan specialists.

Will my information be protected with Prospa?

Protecting your information, and being clear about how we collect, use, exchange and protect your information, is of huge importance and a vital part of our relationship with you. View our Privacy Policy.

Is it safe to link my bank account to the Prospa platform?

Yes. We use industry recognised encryption standards to protect your personal, sensitive and financial data and are ISO27001 certified, validating our commitment to customer data security and privacy. We use a secure bank verification system link to instantly verify your bank account information online so we can provide a fast response.

Do I need security to access funds?

Prospa considers the health of a business to determine creditworthiness. For a Prospa Small Business Loan or a Prospa Business Lines of Credit, no asset security is required upfront to access Prospa funding of up to $150,000.

If you continue to meet your obligations under the facility, such as payment obligations (as detailed in your contract), security will never be required. For facilities over $150,000 (including the Prospa Plus Business Loan), or where your combined exposure to our products exceeds $150,000, Prospa takes security in the form of a charge over your assets.

You can apply for a Prospa Small Business Loan, a Prospa Plus Business Loan or a Prospa Business Line of Credit if you:

• are an Australian Citizen (or permanent resident)
• are over 18 years, own an Australian business (with a valid ABN/ACN)
• can demonstrate 6 months of trading for a new business (or 3 months if you have purchased an existing business) for a Prospa Small Business Loan or Prospa Business Line of Credit.

For a Prospa Plus Business Loan you’ll need to demonstrate 3 years of trading when you apply.

How to get a business loan?

If you need flexible finance for business, we are Australia’s #1 online lender to small business and we may be able to help. Our dedicated customer support team will understand your business and find a finance solution to suit your circumstances. We work with Australian small business owners from NSW to QLD, Victoria to WA and everywhere in between to take the hassle out of business loans.

Unlike traditional lenders, for amounts up to $250K we don’t require the usual pages of reports, financial statements and business plans when you apply. Instead, we offer a quick online application with a fast decision and funding possible in 24 hours. You only need up to 6 months of bank statements, your ABN and a drivers licence to get started. If you’re applying for more than $250K, you’ll need additional documentation.

If you’re concerned about being baffled by banking jargon, we’ve simplified our loan application process so there’s no more complex terminology around cash flow, low interest loans, fixed rate loans versus variable rates, the loan term, terms and conditions and whether you are in a position to refinance in the future. It’s simple and easy to understand with Prospa.

With Prospa you’ll have a clear understanding of what’s expected, how much your set repayments will be, whether they’re daily or weekly, when they’ll be due, the total amount you’ll pay back by the end of your loan, and your payment options.

Call 1300 882 867 to get started on your business loan application today.

What are alternatives to a business loan?

There are a number of options you can explore when you want to compare business financing options. Here are some to think about:

• Invoice factoring: This type of finance is also known as invoice finance. It allows small businesses to receive part of their outstanding invoices immediately to help cover costs. It is usually used to maintain cash flow short-term. Prospa doesn’t offer invoice factoring, however if you do need help with your cash flow or a way to boost working capital, then a Prospa loan could be just what you need.
• Equipment financing: Equipment loans are a way to finance purchases of equipment for your business. This type of finance is usually secured against the value of the business asset you wish to purchase. This can sometimes help to secure a low rate, although this isn’t always the case. So, if you need to purchase business machinery, IT equipment, tools, or even work vehicles, a Prospa business loan could be a good alternative to equipment finance.
• Vehicle finance, Business car loan, Machinery finance: This can be a handy way of updating your fleet vehicles or to cover the cost of large assets like harvesters, excavators, commercial cookers, etc. A Prospa small business loan may be able to cover these items, talk to us today to find out more.
• Business overdraft: Also known as a business line of credit, this handy type of finance can help small businesses cover short-term cash flow gaps. It is often used to cover bills like payroll which can fluctuate if you employ seasonal casuals. It’s also useful to pay suppliers on time if you’re waiting for your own invoices to be paid by your customers.

Do you need a deposit for a business loan?

Some commercial loans require a deposit. And while you don’t need a deposit to apply for a business loan with Prospa, it is a good idea to have a clear understanding of all of your finances before you apply. It’s OK if you don’t have pages and pages of financial analysis to reference. We understand that small business operators are up against it and often struggle to keep up with the paperwork. To apply for up to $250,000, you only need up to 6 months of bank statements, an ABN and your drivers licence.

Do business loans rely on personal credit checks?

Like traditional lenders, Prospa conducts credit checks to look at your personal credit score in conjunction with your business’s financial health. Credit reporting bodies will compile a report on your credit worthiness based on a range of factors which include how many loan applications you have already made, your current credit if you have any, any overdue bills, past bankruptcy if applicable and any pending writs or court judgments.

At Prospa, considering your personal credit score is important, but we also focus on evaluating the financial health of your business. We have developed a complex credit assessment tool which takes into account over 450 separate pieces of information. It’s unique to Prospa and allows us to take the time to really understand how your business operates and what loan amount will be the most applicable to your business’s long-term stability.

If you apply for a loan of $5,000 to $250,000, you need to demonstrate at least 6 – 12 months of trading history through bank statements. If you need $250,000 to $500,000, we’ll require additional financials like a P&L statement. If you are ready to find out how much you can borrow and ready to find a better way to finance your business, contact a member of our friendly customer service team today on 1300 882 867 or fill out a quick and hassle-free online form.