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Back to Business Loan

Small Business Loans supported by the Government’s SME Guarantee Scheme

  • A lump sum of up to $250,000
  • No repayments for the first 6 months
  • No asset security required
  • No fees payable for the first 6 months

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Get back to business with a lump sum
of up to $250,000

A Prospa Back to Business Small Business Loan could provide your business with up to $250,000 for one-off business cash flow needs over a term of up to 36 months. With no repayments for the first 6 months you have some breathing space while you focus on getting back to business.

The Prospa Back to Business Loan is supported by the Government’s Coronavirus SME Guarantee Scheme.

  • A small business loan between $5,000 and $250,000
  • Get a fast decision and quick access to approved funds
  • No repayments for the first 6 months
  • No fees payable for the first 6 months
  • Loan terms up to 36 months
  • No asset security required
  • Supported by the Government’s SME Guarantee Scheme
  • Ask us about early repayment options

Is my business eligible?

If you would like to apply for funding under the Government’s 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 (including working capital, liquidity and operating expenditure)
  • 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 Loan, 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 a lump sum?

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

  • Purchase tools or equipment
  • A renovation or fit out
  • Upgrade equipment or machinery
  • Grow or expand your business
  • Marketing campaigns or a website
  • Roll out a new product or service

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. Now more than ever, we’re here to support the small business community.

“Prospa has been really good for me. They’ve kept me in business, as opposed to maybe finding it too hard and deciding I was going to give it up or sell.”

Julie Wallace
Verdaflore, NSW

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Back to Business Loan

Prospa has introduced the Back to Business Loan as part of the Government’s Coronavirus SME Guarantee Scheme. Eligible businesses are able to apply for up to $250,000 over terms of up to 3 years under the Scheme. Back to Business Loans come with no fees payable for the first 6 months and require no asset security – only personal guarantees will be required. To help small businesses through this tough time, Back to Business Loans also come with no repayments for the first 6 months.

With Prospa’s 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. These repayments will collectively reflect all interest and principal costs over the entire term (and the service fee).

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 that you continue to meet your obligations agreed with us and contact us if you believe you cannot.

With the Back to Business Loan there are no fees payable in the first 6 months.  A 2% Fee will be charged on the loan amount, which is capitalised and will be payable in instalments as part of the repayments once they begin after the end of the 6 month no repayment period.

No additional fees and charges will apply provided that the borrower meets all scheduled repayments and otherwise complies with the product terms and conditions.

Please note, not all amounts, term lengths or rates will be available to all applicants. Interest rates vary due to factors including the amount borrowed, the industry the business operates in, how long the business has been running, whether the business has sufficient cash flow to support the loan, and the overall ‘health’ or creditworthiness of the business.

You can choose to repay the entire amount of your loan early at any time.

You will need to pay the full amount of the outstanding Principal and Service Fee, plus any interest accrued from your last repayment date to the date of payout, and any outstanding fees. All remaining outstanding interest will be waived.

No asset security is required to access the funds. However, personal guarantees will be required.

With the Prospa Back to Business Loan, 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.

General FAQs about Prospa Small Business Loans

The application process is easy and fast. Simply complete the online form in as little as 10 minutes. If you are applying for $150,000 or less, you need:

  • Your driver licence number
  • Your ABN
  • Your BSB and account number
  • For loans over $150,000, you’ll also need some basic financial statements, like a P&L and cash flow.

The application process is the same for funding supported by the Government’s Coronavirus SME Guarantee Scheme.

How fast will I get a decision?

We currently expect that our usual application turnaround times will continue to apply to funding supported by the Government’s Coronavirus SME Guarantee Scheme.

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?

We currently expect that our usual speed of dispersing approved funding will continue to apply to funding supported by the Government’s Coronavirus SME Guarantee Scheme.

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 standard products offer funding up to $300,000. Funding supported by the Government’s Coronavirus SME Guarantee Scheme is up to $250,000 for eligible customers.

Do I need security to access the funds?

Prospa considers the health of a business to determine creditworthiness. For Small Business Loans or Business Lines of Credit, no asset security is required upfront to access up to $100,000.

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

With Prospa funding supported by the Government’s Coronavirus SME Guarantee Scheme no asset security is required for amounts up to $250,000. However personal guarantees will be required.

A standard Prospa Small Business Loan can be used for almost any business purpose – including for growth, to take advantage of an opportunity or to support business cash flow. For example, it could be used for business renovations, marketing, to purchase inventory or new equipment, as general working capital 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.

What are the fees?

There are no hidden fees for our Small Business loans, and you’ll know exactly how much and when you need to pay from day one. There’s no compounding interest, no penalties for early repayment and no additional fees (as long as you make your repayments on time).

Please note, not all amounts, term lengths or rates will be available to all applicants. Interest rates vary due to factors including the amount borrowed, the industry the business operates in, how long the business has been running, whether the business has sufficient cash flow to support the loan, and the overall ‘health’ or creditworthiness of the business.

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

What is your early repayment policy?

You can choose to repay the entire amount of your loan early at any time.

If you choose to repay your entire loan early, Prospa will provide you with a discount on the remaining interest payable on your loan. The level of discount applied to your early repayment amount will depend on how far you are into the loan term and, provided you are not in default, will be at least 25% of the remaining interest payable on your loan.

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

How is the Prospa Small Business Loan different from a traditional business loan?

You can apply for the Prospa Small Business Loan in as little as 10 minutes online or over the phone. Depending on the time of day you apply, approvals can be achieved “same-day” with funds in your account within 24 hours. The Prospa Small Business Loan details the total amount payable upfront including any interest, fees or charges. This is then broken down into either a daily or weekly repayment figure.

The terms and conditions differ for the Back to Business Loan supported by the Government’s Coronavirus SME Guarantee Scheme. Please call us on 1300 882 867 to find out more.

Tell me about the Prospa Small Business Loan?

Prospa offers standard Small Business Loans of $5,000 to $300,000 with terms between 3 – 36 months and cash flow friendly repayments that are either daily or weekly.

The Back to Business Loan supported by the Government’s Coronavirus SME Guarantee Scheme offers amounts up to $250,000 to eligible customers. Please call us on 1300 882 867 to find out more.

What is a Simple Interest Rate per annum?

This is your total interest percentage expressed as an annualised rate. This is the amount of interest expressed as a percentage of the loan amount and does not include the cost of any fees.

What is an Annual Percentage Rate?

The Annual Percentage Rate is the rate that can be used to calculate the cost of the loan taking into account the reducing balance of the Loan Amount, expressed as an annual rate. This does not include the cost of any fees.

Can I speak to someone about a Small Business Loan?

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

Our operating hours are Monday – Friday: 8:30am – 7pm (AEST)

We take the work out of getting a Small Business Loan

We want to help you keep your business moving. Unlike traditional lenders, our entire process puts you in control of getting a Small Business Loan – so you spend less time applying, and more time realising your dreams.

Learn More

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.