Prospa Business Line of Credit
- Max. Loan Amount
- $500,000
- Loan Term
- Up to 2 years
Summary
This business line of credit can help boost your cash flow. Interest rates are risk-based and start from
A business line of credit gives you ongoing access to funds that you can draw on, repay and reuse to cover business expenses and manage your cash flow. Prospa says the funds can be used for almost any business purpose, and you only pay interest on the amount you draw. Your credit limit and interest rate are based on Prospa's assessment of your business. There's no establishment fee, but a weekly service fee applies based on your facility limit. Your line of credit is reviewed every 2 years, and it can continue if your business still meets Prospa's criteria.
Details
Product details
| Product Name | Prospa Business Line of Credit |
| Min. Loan Amount | $2,000 |
| Max. Loan Amount | $500,000 |
| Loan Security | Unsecured |
| Loan Term | Up to 2 years |
How does a Prospa Business Line of Credit work?
Unlike a business loan, a line of credit isn't paid out as a lump sum. You get a limit of $2,000 to $500,000 that you can draw on, repay and reuse as needed over a 24-month term, which can be renewed if your business still meets Prospa's criteria.
Interest is only charged on the amount you've drawn. It's calculated daily and charged weekly at a rate based on Prospa's assessment of your business. A weekly service fee of 0.046% of your limit also applies, whether or not you use it. Limits over $150,000 need security in the form of a charge over your business assets.
Features of a Prospa Business Line of Credit
- Flexible amounts. You can get a credit limit of $2,000 to $500,000, depending on your business's needs.
- Quick access to funds. You can be approved and receive your funds within 24 hours.
- 24-month term. You can use and re-use the credit as much as you want during the term.
- Risk-based interest rate. You will receive a rate from depending on your business's situation.
- Weekly repayments. Prospa will set up weekly automatic repayments that cover interest, as well as 1% of the principal.
- Additional repayments. You can choose to make additional payments to reduce the amount of interest you pay.
- Line activation fee. You will need to pay an up-front fee.
- Monthly subscription fee. You'll pay a weekly service fee based on your facility limit, charged from the date your line of credit is set up, whether or not you draw on it.
- Be at least 18 years old
- Be an Australian citizen or permanent resident
- Own an Australian business with a valid ABN or ACN
- Your business has a monthly turnover of at least $6K
- Have been trading for at least 6 months, or 3 months if you
bought an existing business - Are not operating in a Prospa excluded industry
Fees and charges
You will also need to pay a dishonour fee for each time your direct debit repayment is unsuccessful, and well as a late payment fee.
How to apply for a Prospa Business Line of Credit
You can apply for a Prospa line of credit by clicking "Go to site" above. You will need to meet the following criteria to be eligible for a business line of credit:
A Prospa business line of credit is a flexible funding option for businesses looking to manage their cash flow or cover upcoming expenses. You should compare a range of business finance options to find the one that's best suited to your business.
Frequently asked questions
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