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Prospa
Line of Credit

We’ve created this page to help you make the most of your line of credit. It contains answers to frequently asked questions.
If you can’t find the answer to your query below, please email us at [email protected] and one of our friendly customer service team members will contact you.

Frequently Asked Questions – General

What is Prospa doing to help small businesses?

We recognise that many small businesses are currently facing cash flow pressures, and that things are changing on a constant basis. We continue to lend responsibly to small businessesWe are also committed to managing any customer hardship requests in an appropriate and supportive way. To have a conversation about what you need and what we can do to help, please leave your details in one of the forms above and a member of the team will be in touch. 

Are Prospa business loans and lines of credit covered by the Australian Federal Government’s Coronavirus SME Guarantee Scheme?

The Government is currently working through the details of this program and Prospa is well placed to participate once it is finalised 

Is my business eligible for the $150K instant asset write off?

The instant asset write-off threshold has been increased from $30,000 to $150,000. This means that eligible businesses can instantly deduct the cost (the business use portion) of eligible assets worth up to $150,000, rather than claim deductions over a number of years. This applies from 12 March 2020 until 30 June 2020, for new or secondhand assets first used or installed ready for use in this timeframe. For the most current and complete information, please refer to the Australian Federal Government Instant Asset Write off page.

What government assistance is available?

The Federal Government has introduced support packages to assist small and medium businesses impacted by COVID-19. For general information on the support available and eligibility criteria, refer to the Australian Federal Governments Coronavirus Business Support page.

What information and resources can Prospa provide me?

The Prospa Blog has a collection of articles, tips and stories to support small businesses through this time.

Are you open?

Prospa is open for business. During this time of uncertainty, we are continuing to support the small business community. We continue to accept applications from new and existing customers and to provide appropriate support based on an assessment of each applicant’s individual circumstances.

Existing Customers

What is the difference between a repayment deferral and a partial repayment?

A repayment deferral is like a repayment holiday, except interest accrues on your outstanding balance during the period of the deferral. You need to provide our team with some information about the hardship your business is experiencing, and once in place you do not need to make repayments during the agreed periodAny deferred repayments will be added to the end of the contract term. Our team will discuss the quickest and easiest way for you to achieve this, which may be to provide electronic access to your main business trading account. 

A partial repayment is where you continue to make repayments as per your repayment plan, but for a smaller amount than originally agreed. This allows you to continue to pay down the funds you owe, and manage the level of accruing interest. Amounts discounted will be added to the end of your contract term.

We are offering customised support for each business. Where possible, we encourage you to make partial repayments of even a small amount, so you and your business are in a better position when the agreed hardship period ends 

To have a conversation about your options, please fill in the ‘Existing Customers’ form above and a member of the team will be in touch. 

I’m worried about making my regular repayments for my Small Business Loan – what options are available to me?

We understand that every business is different and will need different levels of support during this time. Prospa has support and options available to existing Small Business Loan customers impacted by COVID-19, including deferred repayments and partial repayments. Please fill in the ‘Existing Customers’ form above, and a member of the team will be in touch as soon as possible to discuss which options may be available for your specific needs.

 

I’m worried about making my regular repayments for my Line of Credit – what options are available to me?

We understand that every business is different and will need different levels of support during this time. Prospa has support and options available to existing Line of Credit customers impacted by COVID-19, including deferred repayments. During the deferral period you will not need to make any repayments and your facility will be suspended for any further drawdowns or Pay Anyone transactions.  If you have any questions, please fill in the ‘Existing Customers’ form above and a member of the team will be in touch as soon as possible to discuss your specific needs.

How long can I defer my repayments for?

We are offering repayment deferral periods of varying lengths based on your individual circumstances. If you have any questions, please fill in the ‘Existing Customers’ form above and a member of the team will be in touch as soon as possible to discuss your specific needs. 

What happens to my repayments at the end of my deferral/partial repayment period?

If you are able to manage them, your repayments will go back to normal at the end of your assistance period. Amounts discounted or deferred, will be added to the end of your contract term.  

We will send you a communication before your repayments are due to restart. If you still need support at the end of your assistance period, you can contact our team to discuss further options.  

Will the interest rate on my current Prospa Small Business Loan be frozen if I defer my repayments?

 Your current rate won’t change. You will incur an interest adjustment for the period of deferral which will be added to your outstanding loan amount. Once you are able to start making repayments we will talk to you about whether your loan term should be re-structured.

Will the interest rate on my current Prospa Line of Credit be frozen if I defer my repayments?

Your current rate won’t change. You will accrue interest during any deferral period at your usual rate and this will be added to the total balance you need to repay. Please note that we will not add this interest component to your drawn balance so you will not be charged compounded interest during the remainder of your term. During the deferral period you will not need to make any repayments and your facility will be suspended for any further drawdowns or Pay Anyone transactions.

Are you charging late fees?

If you are experiencing trouble repaying your loan and are worried about incurring a late fee, please reach out to us to organise hardship support before you miss a repayment. That way we can ensure you won’t be charged a late fee. If you have already missed a repayment and incurred a late fee, please get in contact so that we can discuss support based on your individual circumstancesTo have a conversation, please leave your details in one of the forms above and a member of the team will be in touch. 

How can I contact Prospa if I’m an existing customer?

If you wish to speak to someone to discuss options around deferrals or partial repayments, please leave your details in the ‘Existing Customers’ form above and a member of the team will be in touch as soon as possible. For any urgent enquiries, call our team on 1300 882 867 in Australia or 0800 134 933 in New Zealand or email us at [email protected]

What evidence will I need to prove my business has been impacted by COVID-19?

Existing customers who are seeking financial assistance will be required to provide a statement of financial position and other supporting documents (such as bank statements). To discuss what financial support options are available to you, please leave your details in the existing customer form above and a member of the team will be in touch.

If I defer my repayments will it affect my credit rating?

Prospa is required to report your repayment history to credit bureaus. Any change to your loan structure or repayments may be recorded on your credit history.

I’m nervous about telling you I’m in trouble

Now more than ever we want to provide small business owners with the support they need.

If you are an existing customer and believe your business has been impacted by COVID-19 please reach out to us to organise financial support. Make sure you reach out before you miss a repayment, that way you may be able to avoid a late fee. To have a conversation, please leave your details in one of the forms above and a member of the team will be in touch.

New Customers

Can I still apply for funding from Prospa?

We continue to lend responsibly to small businesses and are committed to managing any customer requests in an appropriate and supportive way. Due to the uncertainty around the spread and duration of COVID-19, we are temporarily adjusting our lending policies and have made some interim changes to the industries we will support and the amount of funding we will extend. As always, we will conduct individual assessment of each applicant business and provide funding based on your individual circumstances. To speak to a Business Lending Specialist about funding options, please leave your details in the ‘New Customers’ form above and a member of the team will be in touch as soon as possible. 

I’d like funding from Prospa, does it matter what industry I am in?

Due to the uncertainty around the spread and duration of COVID-19, we are temporarily adjusting our lending policies and have made some interim changes to the industries we will support and the amount of funding we will extend. We are continuing to monitor and assess the situation. To discuss your specific circumstances please leave your details in the ‘New Customers’ form above and a member of the team will be in touch as soon as possible.

About Prospa Business Line of Credit

A Prospa Business Line of Credit is a facility that gives you flexible, ongoing access to funds to help you confidently manage cash flow fluctuations in your business. You can use and reuse the funds, up to your approved credit limit, as much or as little as you like during your renewable 24-month term. You only pay interest on the funds you use, while you’re using them.

A Prospa Business Line of Credit is designed to give you confidence to help you manage any unexpected cash flow gaps. A line of credit is often used to pay staff wages, cover unpaid invoices, buy urgent stock, manage seasonal cash flow fluctuations, pay suppliers, and manage BAS payments and late-paying customers.

It’s important to do your homework, explore your options and decide on the most appropriate funding solution for your business’ needs.

Line of Credit

Applying for a Prospa Business Line of Credit

If your business’ monthly turnover is more than $6,000 and you’ve been trading for at least 6 months, you can apply.

It’s easy – and only takes 10 minutes! Fill out this short online form and a Prospa small business lending specialist will be in touch.

You’ll just need an active ABN, your business bank account details and your driver’s licence details.

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.

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.

We offer line of credit facilities of between $2,000 and $150,000. When you apply, we assess the financial health of your business and the repayments it can support. The size of your line of credit and the interest rate will depend on the specific circumstances of your business.

No asset security is required upfront to access up to $100,000 in Prospa funding, although we do require a personal guarantee. As long as you continue to meet your obligations under the line of credit, such as payment obligations (detailed in your contract), asset security will never be required.

Where your combined exposure to our products exceeds $100,000, Prospa takes security in the form of a charge over your assets.

Using a Business Line of Credit

There are two ways to access and view the funds within your Prospa Business Line of Credit:

  • The Prospa online portal, or
  • The Prospa mobile app.

Once logged in, you can view transactions, transfer funds to your nominated business bank account, pay invoices, staff and suppliers directly, make purchases, set up scheduled and recurring payments and much more.

We will direct debit your nominated bank account weekly with a minimum repayment comprising of principal and interest on amounts drawn under the facility, as well as a weekly service fee and any other applicable fees (see fee section below). But you can also make additional repayments at any time.

You only pay interest on the funds you have drawn down, and only until you repay those funds.

Interest is charged at a fixed annual percentage rate. It is calculated daily based on your drawn balance (i.e. the amount of your line of credit facility that has been drawn down and not repaid), and charged weekly.

You can make repayments above and beyond the weekly minimum whenever you please using BPAY. Any additional repayments will reduce the amount of interest you are charged, as we only charge interest on the funds you use, while you use them

If you need to increase the limit of your line of credit, speak to your dedicated small business lending specialist on 1300 882 867 to see what options may be available.

A weekly service fee is charged from the date of settlement, payable in arrears each week. The fee is 0.046% of the facility limit per week.

If we attempt to direct debit your business account for the regular weekly repayment and the payment can’t be made, there will be a $25 dishonour fee, as well as a late payment fee.

If approved, your line of credit is for a 24-month term.

End of Term Process

On or before the end of the 24-month term you can choose from the following options:

  • you can apply to renew your Line of Credit for a further 24-month term; or
  • you can arrange to close your Line of Credit.

If you elect to renew your Line of Credit for a further 24-month term, we will need to complete a new assessment to check whether there have been any changes in your business. If the term is renewed, it may be on terms and conditions that are the same or different to your original terms and conditions (for example, the interest rate and/or facility limit may change). 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.

You can pay off the balance of your line of credit at any time.

If you have any trouble accessing your line of credit through either the Prospa online portal or mobile app, simply call one of our small business lending specialists on 1300 882 867 and we’ll help you out. You can also email [email protected].

Security and Privacy

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

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 an advanced bank verification system link to instantly verify your bank account information online so we can provide a fast response.