Prospa Business Line of Credit

With the Prospa Business Line of Credit you pay:

• A weekly service fee of 0.046%, charged weekly from the date of Settlement.
• Interest is only charged on the funds you use. It is charged weekly at a fixed rate, calculated daily based on your drawn balance (i.e. the amount that has been drawn down and not repaid. Your limit and your interest rate, will be based on our assessment of your business.
• A lodgement fee may apply if your loan is secured with collateral.

For a Business Loan or Line of Credit up to $150K, you must have:

• From 6 months trading history
• Monthly turnover of $6K
• Business owners must be 18+ years
• Business owners must be an Australian citizen or permanent resident

For a Business Loan or Line of Credit over $150K, you must have:

• Minimum 2 years trading history
• Annual turnover of $1M
• Property or asset ownership
• Business owners must be 18+ years
• Business owners must be an Australian citizen or permanent resident

With a Business Line of Credit, you can get ongoing access to funds to simplify your cash flow, plus your only pay interest on what you use. You can draw down and pay back the funds as many times as you want throughout the term. It is a great way to ensure you always have cash in hand to pay wages, bills or suppliers.

We will set up an automatic repayment schedule with set weekly repayments over the 2 year term. The weekly repayment will comprise of the Weekly Service Fee, plus if you’ve drawn down on our Line of Credit, it will also include the interest and a portion of principal as well.

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

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

On or before the end of the 2 year term you can choose from the following options:

• you can apply to renew your Line of Credit for a further 2 years; or
• you can arrange to close your Line of Credit.

If you elect to renew your Line of Credit for a further 2 year 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 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 104 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 104 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 104 weeks at the same rate as your Line of Credit. To be eligible for the 104 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 104 week repayment plan.