Payroll funding, settled in hours
Why 80% of Businesses Face the Payroll Gap
You’ve done the work, but the funds haven’t cleared. This timing mismatch of paying staff at the start of the cycle while waiting 30–60 days for a client to pay their invoice is the reality for most growing businesses.
Manage payroll cashflow your way
Ongoing solution
Business Line of Credit
- Best for managing recurring cash flow dips and seasonal wages.
- Key Benefit: Pay interest only on funds used. Draw down instantly.
- Example: This solution is ideal for paying casual staff during quiet periods.
Business Line of Credit
minimum criteria
- Minimum 2 years trading history
- Monthly turnover of $6K
- Business owner must be 18+ years
- Business owner must be an Australian citizen or permanent resident
One‑off help
Small Business Loan
- Best for a one‑off lump sum for growth hiring or a specific contract.
- Key Benefit: Fixed term with predictable repayments.
- Example: Ideal for front‑loading wages on a major new project.
Small Business Loan
minimum criteria
- From 6 months time trading
- Monthly turnover of $6K
- Property or asset ownership required over $150K
- Business owner must be 18+ years
- Business owner must be an Australian citizen or permanent resident
Calculate your payroll funding costs
Don’t let a temporary cash flow gap impact your team. Use the calculator to estimate the weekly cost of accessing funds to pay staff wages on time, whether you choose a Business Loan or a Line of Credit.
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Putting the team first, bridging the payroll gap
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What is a payroll loan?
A payroll loan (also called payroll funding) is a type of business finance used to help cover employee wages and other people‑related costs when cash flow is tight. It gives businesses access to funds so they can pay staff on time, even if customer payments are delayed or expenses temporarily spike.
With Prospa, payroll costs can be covered using a Business Loan or a Business Line of Credit, both of which can be used for everyday business expenses, including payroll.
How does payroll funding work?
Once approved for Prospa Business Loan or Line of Credit, the capital that can be used to pay wages, super, PAYG, contractors, and freelancers.
- With a Business Line of Credit, you can draw down funds whenever you need them and only pay interest on the amount you use. This makes it well suited to recurring or variable payroll expenses.
- With a Business Loan, you receive a lump sum upfront and repay it in regular instalments. This can work well for one‑off payroll gaps or planned staffing costs.
There are no restrictions requiring you to submit payroll‑specific documents each time you use the funds.
Is my business eligible?
Eligibility depends on your business profile and the product you apply for. In general, to be eligible for Prospa funding, businesses must:
- Be based in Australia
- Have an ABN
- Meet minimum trading history and turnover requirements (these vary by product and funding amount)
- Be owned by Australian citizens or permanent residents aged 18+
Prospa assesses applications based on overall business health, not just personal credit score, using a broad range of financial and business data.
How do I apply?
Applying is quick and can be completed online.
To apply, you’ll generally need:
- Your ABN and basic business details
- Recent bank statements (or permission to securely connect your bank account)
- Additional financials for higher funding amounts, if required
Most applications can be completed in minutes, and Prospa may provide a decision quickly during business hours.
FAQs
Payroll Loan Questions Answered
It depends on how predictable your payroll needs are.
A Business Line of Credit is often better for payroll because it gives you ongoing access to funds and you only pay interest on what you use. This makes it well suited to recurring or fluctuating expenses like wages, super, and PAYG, especially if cash flow changes week to week. Prospa’s Line of Credit can be used for everyday expenses, including payroll.
A business loan can be a better option if you need a one‑off lump sum to cover a short‑term payroll gap or a specific event (for example, onboarding new staff or covering seasonal spikes). Loans have fixed repayments, which can make budgeting easier when costs are known in advance.
Yes. Prospa funding can generally be used for legitimate business purposes, which may include paying yourself or business partners, provided it aligns with how your business normally operates and meets your loan terms. Prospa does not restrict funds to a single expense category, and funding can be used to support day‑to‑day business operations.
No, Prospa typically assesses applications using bank statements and business financial information, rather than payroll‑specific documents like payslips or payroll ledgers. For lower funding amounts, you may only need recent bank statements and basic business details. Additional financials may be required for higher amounts.
Yes. Prospa funding can be used to pay contractors, freelancers, and suppliers, as well as employees. A Line of Credit is particularly useful here, as it allows you to draw down funds as needed to cover variable or short‑term payment obligations.
If you’re approved for a Business Line of Credit, you’re not required to use the funds straight away. You can keep the credit available and only draw down when you need it, paying interest only on the amount you use. If you don’t use the funds, you won’t pay interest on unused credit.
For a business loan, once funds are drawn, repayments generally begin according to your agreed schedule, even if the money isn’t ultimately used for that specific pay run.
Information about the Prospa Business Account is provided by Hay Limited (ABN 34 629 037 403 & AFSL 515459), the issuer of the Prospa Business Account and Prospa Visa Business Debit Card. Prospa Innovations Pty Ltd (ABN 98 609 580 734), a wholly owned subsidiary of Prospa Advance Pty Ltd (ABN 47 154 775 667), is a corporate authorised representative (AFS representative number 1313363) of Hay Limited. All information is factual and should not be considered as financial product advice. Please make sure to read the Financial Services Guide, Target Market Determination, Product Disclosure Statement and the Card and Account terms before making decisions about the product. Eligibility criteria, fees, terms and conditions apply.
