About Prospa business loans
Prospa offers business loans of $5,000 to $250,000 with terms between 3 and 24 months and cash flow friendly repayments that are either daily or weekly.
You can apply for the Prospa business loan in under 10 minutes online or over the phone, receive a same day response and the funds could be in your account in 24 hours. Traditional business loans reference an interest rate per annum plus other fees and charges. The Prospa 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.
A Prospa business loan can be used for almost any business purpose – including for growth, to take advantage of an opportunity or to support cash flow. It can be used for business renovations, marketing, to purchase inventory or new equipment, as general working capital and much more. The loan cannot be used for personal purposes.
The application process is easy and fast. Simply complete the online form in 10 minutes. If you are applying for $100,000 or less, you need:
- Your driver licence number
- Your ABN
- Your BSB and account number
For loans over $100,000, you’ll also need some basic financial statements, like a P&L and cash flow.
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.
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 a loan amount up to $250,000.
Fees & repayments
Prospa offers a factor rate. A factor rate is expressed as a decimal figure not a percent. It varies based on things like your industry, how long you have been in business, and the health of your cash flow. When a factor rate is used, interest is charged to the principal when the loan is originated, it doesn’t compound.
There are no hidden fees for our business loans, and you’ll know exactly how much you need to pay and when from day one. There’s no compounding interest, no penalties for early repayment and no additional fees (as long as you make your payments on time).
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 that is payable on your loan. The level of discount applied to your 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.
There are no additional fees for early repayment and no balloon payment at the end of your loan. Any outstanding late fees or default fees will not be waived and the discount will not be applied in respect of any interest payments that are in arrears. Once you make the final payment your balance will be $0.
If you wish to repay the entire balance of your loan early, you should ring Prospa on 1300 882 867 to obtain your early repayment figures and relevant payment details.
Right from the start you will know your total repayment amount and the date of your final payment.
To help you avoid missing repayments we offer repayments that fit in with your cash flow cycle – either daily or weekly. These are automatically deducted from your nominated business account.
Security & privacy
Yes. We use industry recognised encryption standards to protect your personal, sensitive and financial data and we’re ISO27001 certified for our commitment to customer 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.
About business loans
Asset-based borrowing is when a business owner uses an asset they own to secure a loan. The asset can be either a personal asset like the family home, or a business asset like a truck or piece of equipment.
The vast majority of lenders, including the big banks, tend to secure loans against an asset. If you have trouble paying back the loan then your asset may be sold by the lender. In essence it’s a way of securing new financing by using the value of what you already have.
For loans up to $100,000 no asset security is required to access the money, however we do require a personal guarantee. As long as you follow your loan obligations (as detailed in your loan contract document), asset security will never be required. For loans of over $100,000 Prospa generally takes a personal guarantee and security in the form of a charge over assets.