Since Prospa’s founding in 2011, it’s aimed to offer a competitive alternative to traditional banks for Aussie small businesses. Focused on quick, personalised lending, Prospa uses its own smart technology platform to allow borrowers to apply and be approved for loans online.
Prospa provides great business loans and lines of credit to small businesses with its customer first focus and innovative lending. There are just a few things to know before you get started. We’ve gathered some of the numbers, features and specifics of a Prospa business loan, so you can understand the business loan process before you dive in.
Interest rates vary based on risk. Rates range from 9.90% to 26.50% p.a.
Principal & Interest
from 24 hours
Getting a stock standard loan that doesn’t take into account the specifics of your business can leave you paying more or on terms that don’t fit with what you need. You want a loan that is personalised to your business, which is why Prospa does just that. They’ll look at things like your business’s finances, how long you’ve been in business and what industry you’re in.
Unlike other lenders, Prospa uses a factor rate which is charged as a decimal figure, rather than an interest rate, which is a percentage of your loan. Using this rate mean that interest is charged to the original loan amount and doesn’t compound, so you’ll know the full amount you need to repay up front, and then it will be split into repayments.
Prospa loans are set up so that you’ll know about any guaranteed fees upfront, including a first time fee to set up the loan. Once you’ve got the loan, if you fail to make a repayment, you’ll have to pay a direct debit dishonour fee and for every corresponding repayment not on your agreed schedule, you’ll need to pay a rescheduling fee. All these fees, including your factor rate are determined by the specifics of your business.
You can apply for a Prospa business loan online, via phone or on live chat with a real person. You’ll need to complete a short 10 minute form about your business’s finances and operations. If you’re borrowing under $100,000 all you need to provide is your driver's license, ABN and BSB and account number. Loans over $100,000 also require some financial statements like profit and loss and cash flow.
While Prospa is keen for every small business to get the loan they need, they do have a couple of requirements: you need to have been trading and receiving income for at least 6 months and to have minimum annual turnover of $25,000. Remember that as proof, you'll need to provide bank statements for the full trading period of up to 12 months, so if you've been in business for 8 months, you'll need to show Prospa 8 months' worth of statements.
Having the flexibility to choose the exact amount you need, whether it’s a small amount to get those ever needed essentials or a large amount to drive your business to that next phase is critical. That’s why Prospa offers loans between $5000 - $300,000, so they can meet your business loan needs, no matter the amount.
Who has time to be waiting and waiting and waiting to know if your business loan has been approved? No-one. That’s why Prospa gets back to you within hours of your quick and easy 10 minute application. Plus you won’t be twiddling your thumbs as you wait for your funding to come through, Prospa has made the dream of 24 hour funding a real possibility.
Not having large physical assets to put up as security can be one of the biggest obstacles for a small business looking to get a loan. This is why Prospa allows business’ looking for a loan under $100,000 to borrow without any sort of brick and mortar or tangible assets. Meaning if your business is running out of a small rented office or even your bedroom you’ll still have the chance to get that funding you need.
Having large repayments due at the end of the month can put unnecessary strain on your business budget. Using a factor rate rather than an interest rate, Prospa allows for daily or weekly repayments, meaning you can always be on top of your repayments and fit them around your budget.
Business loans can be complex and at times stressful to manage. Having someone to talk to about any issues or concerns can make the whole procedure a lot easier and be the perfect panadol for your business loan headache. You can call Prospa to get in contact with their customer support to make sure your business loan experience is as good as possible.
Aside from business loans, Prospa now offer an unsecured business Line of Credit. Eligible businesses may be able to access a Prospa Line of Credit between $2,000 and $150,000 for terms of up to 24 months.