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Back to Business
Line of Credit

No repayments
for the first 6 months

  • Ongoing access to funds up to $250,000
  • No asset security required
  • No fees payable for the first 6 months
  • Fast decision and funding possible in 24 hours

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Get back to business with ongoing access to funds
up to $250,000 for working capital.

The Prospa Back to Business Line of Credit is a cash flow safety net of up to $250,000. Dip in when you need to during the term and only be charged interest on the funds you use. With no repayments for the first 6 months, you have a bit of breathing space to get back to business.

Prospa is supported by the Government’s Coronavirus SME Guarantee Scheme.

  • Apply for between $2,000 and $250,000
  • Revolving line of credit over terms of up to 24 months
  • No repayments for the first 6 months
  • No fees payable for the first 6 months
  • No asset security required
  • Interest only charged on the funds you use
  • Fast application and decision
  • Funding possible in 24 hours

Is my business eligible?

If you would like to apply for funding under the Coronavirus SME Guarantee Scheme, your business must meet the following eligibility criteria.

  • Small businesses with annual turnover of less than $50 million
  • The business must be registered and operating in Australia under a valid ABN
  • Funding must be used for business purposes only
  • Funding must be used to support current and upcoming cash flow needs
  • Funding cannot be used to refinance existing finance with Prospa or any other lender
  • The total sum of your funding supported by the Government’s SME Guarantee Scheme (including funding from other financial institutions) must not exceed $250,000

Prospa continues to responsibly lend to new and existing customers. If you’re applying for a Prospa Back to Business Line of Credit, you’ll need to demonstrate monthly turnover figures and that you have been trading for at least 24 months. You also need an active ABN, your business bank account details and drivers licence details. We may also need to see business financials for larger loan amounts.

What could your business do with
ongoing access to funds?

Your business can use the funds for business purposes to support current and upcoming cash flow needs.

  • Manage fluctuations in cash flow
  • Pay staff wages
  • Cover unpaid invoices
  • Buy urgent stock
  • Manage late paying customers
  • Pay suppliers

Talk to Australia’s #1 online lender to small business

We’ve helped more than 27,000 Aussie small businesses with funds to seize opportunities or to support cash flow. We continue to fund eligible small businesses with a range of options.

“When I’m waiting for the next invoice payment to come through, it’s nice to have the Prospa Line of Credit to know I can keep things moving in the meantime.”

Josh Secomb
Broad Reform, NSW

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Back to Business Line of Credit

Prospa has introduced the Back to Business Line of Credit as part of the Government’s Coronavirus SME Guarantee Scheme. Eligible businesses are able to apply for a revolving line of credit with limits up to $250,000 over a revolving term of up to 24 months. Once the revolving term ends, the outstanding balance of the Line of Credit must be repaid over the subsequent 12 months. It can be repaid in a lump sum or over a 50 week repayment plan.

The Back to Business Line of Credit is a cash flow safety net which the business can use when needed during the term and interest is only accrued on the funds used.

There is no activation fee and no asset security is needed to access the funds – only a personal guarantee will be required. To help small businesses through this tough time, Back to Business Lines of Credit also come with no repayments for the first 6 months.

With the Back to Business Line of Credit there will be an initial 6 month no repayment period during which interest will accrue but no repayments will be required. At the end of the 6 month grace period, regular weekly repayments will commence comprising of principal and interest on amounts drawn under the facility.  For the first 26 weeks after the 6 month no repayment period, each weekly repayment will also comprise an instalment of the accrued interest and monthly service fees that accrued during the grace period.

At the end of your loan term you will have the option to repay the outstanding balance in one lump sum or roll the outstanding amount into an amortising term loan to be paid down over a further 50 week period.

Prospa is required to report your repayment history to credit bureaus. However we will not mark a default on your credit file during a repayment deferral or part-payment period we have agreed to provide you. It’s important to continue to meet your obligations agreed with us and to contact us if you believe you cannot.

With the Back to Business Line of Credit, there are no fees payable in the first 6 months. A $35 Monthly Fee applies every month over the entire term, which will accrue during the first 6 months. The accrued monthly service fees will become payable in weekly instalments over the first 26 weeks after the end of the grace period, along with the regular monthly service fee which will be payable in arrears each month over the entire remaining term.

No additional fees and charges will apply during the term provided that the borrower complies with the product terms and conditions.

With the Back to Business Line of Credit, supported by the Government’s Coronavirus SME Guarantee Scheme, no asset security is required to access the funds. However, personal guarantees will be required.

The total sum of your funding supported by the Government’s SME Guarantee Scheme (including funding from other financial institutions) must not exceed $250,000.

You can repay the entire outstanding balance of your Back to Business Line of Credit or simply make voluntary repayments in addition to the scheduled minimum repayment at any time. Whatever you pay back will reduce the total amount owing, and you can access available funds via drawdown through your Online Portal or Prospa’s Mobile App.

Available funds will remain accessible to you to drawdown throughout the revolving term.

During the initial 6 month no repayment period for the Back to Business Line of Credit, no payments or repayments are required and any voluntary payments you make will be allocated to the outstanding principal first. All payments received after the 6 month no repayment period will be allocated to fees, interest then principal.

General FAQs about the Prospa Line of Credit

With the standard Prospa Line of Credit you pay:

  • A Weekly Service Fee is charged weekly from the date of Settlement.
  • Interest, but you only pay interest on the funds you have drawn down, and only until you repay those funds. Interest is charged at a fixed rate, calculated daily based on your drawn balance (i.e. the amount of your facility that has been drawn down and not repaid), and interest is charged weekly. The facility limit of your Line of Credit, and your interest rate, will be based on our assessment of your business.
  • Every week we will attempt to Direct Debit your business account for the repayment amount owing that week, any unsuccessful attempt will attract a $25 Dishonour Fee, as well as a Late Payment Fee.

Prospa’s Back to Business Line of Credit is supported by the Government’s Coronavirus SME Guarantee Scheme which means the fees and charges are different. Please call us on 1300 882 867 to find out more.

Tell me about the standard Prospa Business Line of Credit?

Prospa’s standard Line of Credit gives you access to a convenient and flexible source of funds between $2,000 to $100,000 and you only pay interest on what you use, while you use it.

On the other hand, the Back to Business Line of Credit supported by the Government’s Coronavirus SME Guarantee Scheme offers limits of up to $250,000. 

How long is a standard Prospa Business Line of Credit available?

Your Line of Credit will be available for a period of 12 months. If you wish to extend your Line of Credit beyond this 12-month period, we will need to re-assess your business situation in case anything has changed.

What happens at the end of a standard Prospa Business Line of Credit term?

On or before the end of the 12-month term you can choose from the following options:

  • you can apply to renew your Line of Credit for a further 12-month term; or
  • you can arrange to close your Line of Credit.

If you elect to renew your Line of Credit for a further 12-month term, we will need to complete a new assessment to check whether there have been any changes in your business. If you are approved, you can also review your facility limit based on your business’s current needs.

If you elect to close your Line of Credit at the end of the term, there are two possible options available to you to repay the outstanding balance.

You can elect to repay the entire outstanding balance at the end of the term. This can be done in one lump sum payment via BPay.

If you are eligible, you may elect to repay your outstanding balance on a 52-week repayment plan. This repayment plan will commence immediately after your Line of Credit term finishes. At this time, your access to the facility will be suspended and the outstanding balance of your Line of Credit will be divided into 52 instalments. These instalments will be direct debited from your bank account each week along with that week’s accrued interest and Weekly Service Fee until your outstanding balance is paid down to $0. Interest will accrue on the outstanding balance throughout the 52 weeks at the same rate as your Line of Credit. To be eligible for the 52-week repayment plan you must not be in arrears at the end of your Line of Credit term.

If you do not select an option on or before the date on which the term ends or you apply for and are not approved for a term extension, your Line of Credit will be closed and, if eligible, you will be placed on the 52-week repayment plan.

The rules differ for the Back to Business Line of Credit supported by the Government’s Coronavirus SME Guarantee Scheme. Please call us on 1300 882 867 to find out more.

How do I pay back a standard Prospa Business Line of Credit?

We will set up an automatic repayment schedule with set weekly repayments over 12 months. The weekly repayment will comprise interest and a portion of principal as well as any applicable fees, such as the Weekly Service Fee.

So that you don’t need to worry about missing a payment, your weekly repayments will be automatically debited from your nominated business bank account.

You can choose to simply pay the set weekly repayments, or you can make additional payments at any time to reduce your drawn balance, thus reducing the amount of interest you pay. It’s up to you.

The rules are different for the Back to Business Line of Credit supported by the Government’s Coronavirus SME Guarantee Scheme. Please call us on 1300 882 867 to find out more.

How do I access the standard Prospa Business Line of Credit?

There are two ways to access and use your Prospa Line of Credit:

  • Via the Prospa online portal
  • Via the Prospa mobile app

Once you have logged in, you will be able to view transactions, draw down funds to your nominated business bank account, directly pay invoices and suppliers and much more.

Visit our getting started page for more details.

What can the standard Prospa Business Line of Credit be used for?

A Prospa Line of Credit can be used for almost any business purpose – including activities that help you manage day-to-day cash flow. For example, it could be used for paying staff wages, covering unpaid invoices, buying urgent stock, managing seasonal fluctuations, paying suppliers and much more.

Funds supported by the Government’s Coronavirus SME Guarantee Scheme can only be used for business purposes and for application to support current and upcoming business cash flow needs including working capital, liquidity and operating expenditure. This could include buying equipment, hiring equipment, marketing, purchasing inventory, working capital and hiring employees.

Funding supported by the Scheme must be a new loan (rather than an increase or extension to an existing loan) and cannot be used to refinance existing finance with Prospa or any other lender. 

Am I eligible for a standard Prospa Business Line of Credit?

You can apply for a standard Prospa 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 12 months of trading for a new business (or 3 months if you have purchased an existing business)

There are additional eligibility criteria for the Back to Business Line of Credit because it is supported by the Government’s Coronavirus SME Guarantee Scheme and needs to conform to the rules and regulations of the Scheme. Please call us on 1300 882 867 to find out more.

Can I speak to someone about a standard Prospa Business Line of Credit?

Sure thing. Call our friendly team on 1300 882 867.

Our operating hours are Monday – Friday: 8:30am – 7pm (AEST). Alternatively, you can email us at [email protected]

Get ongoing access to funds with a Prospa Business Line of Credit

A Prospa Business Line of Credit is a safety net designed to give you the confidence to focus on what you love about your business – without worrying about day-to-day finances.

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THINGS YOU SHOULD KNOW

Eligibility and approval is subject to the Government’s Coronavirus SME Guarantee Scheme eligibility criteria and standard credit assessment. Not all amounts, term lengths or rates will be available to all applicants. Fees, terms and conditions apply.

6 month no repayment period – Back to Business Loan. There will be an initial 6 month no repayment period during which interest will accrue but no repayments will be required. At the end of the 6 month grace period, regular fixed daily or weekly repayments will commence comprising of principal and interest. For the first 26 weeks after the 6 month no repayment period, each daily or weekly repayment will also comprise an instalment of the accrued interest and the 2% Service Fee that accrued during the grace period.

6 month no repayment period – Back to Business Line of Credit. There will be an initial 6 month no repayment period during which interest will accrue but no repayments will be required. At the end of the 6 month grace period, regular weekly repayments will commence comprising of principal and interest on amounts drawn under the facility. For the first 26 weeks after the 6 month no repayment period, each weekly repayment will also comprise an instalment of the accrued interest and monthly service fees that accrued during the grace period. After the end of the grace period, the regular monthly service fee will also be payable in arrears each month over the remaining term. At the end of your loan term you will have the option to repay the outstanding balance in one lump sum or roll the outstanding amount into an amortising term loan to be paid down over a further 50 week period.

Fees - No fees will be payable in the first 6 month no repayment period. The following fees will become payable after the end of the first 6 months:

Back to Business Loan: 2% Service Fee on the loan amount, which will be capitalised and become payable in instalments over the first 26 weeks following the end of the grace period.

Back to Business Line of Credit: $35 Monthly Service Fee applies over the entire term, which will accrue during the first 6 months. The accrued monthly service fees will become payable in weekly instalments over the first 26 weeks after the end of the grace period, along with the regular monthly service fee which will be payable in arrears each month over the remaining term.

Security: No asset security is required upfront to access the funds. Personal guarantees will be required.

Funding Limits: The total sum of your funding supported by the Government’s SME Guarantee Scheme (including funding from other financial institutions) must not exceed $250,000.