Prospa Business Line of Credit

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Manage your cash flow with a business line of credit.

A business line of credit gives you ongoing access to funds that can be used to cover business expenses and help you better manage any cash flow issues. You only pay interest on the amount you use and the funds can be used for any worthwhile business purpose.

For businesses looking to get access to more than $100,000, Prospa also offers traditional business loans up to $300,000.

Applicants who are approved for a business line of credit with Prospa before 31st December 2019 will be subject to a $0 activation fee and will be offered into a draw with the chance to win $6,000.

$195 line activation fee ( $0 for customers who are approved before 31 December 2019 )

Upfront Fee

$100,000

Max. Loan Amount

Up to 1 year

Loan Term

Details

Product NameProspa Business Line of Credit
Min. Loan Amount$2,000
Max. Loan Amount$100,000
Loan SecurityUnsecured
Upfront Fee$195 line activation fee ( $0 for customers who are approved before 31 December 2019 )
Loan TermUp to 1 year

How does a Prospa Business Line of Credit work?

Unlike a regular business loan, a line of credit is not paid as an up-front lump sum, but can be drawn on if and when needed. You only repay the amount that you have used and can continue to access the funds, provided you make your repayments.

You can get a line of credit of $2,000 to $100,000, which can then be accessed as many times as needed throughout the 12-month term. If you wish to extend the term, your business will need to be reassessed by Prospa, and this can be done via phone.

You are charged interest on the funds you have drawn down, and interest is calculated daily and charged weekly. You will receive a rate from 14.95% p.a. but your rate will vary based on Prospa's assessment of your business.

Prospa are offering a limited time special offer on their business line of credit where successful applicants will not be required to pay an activation fee, and will be entered into a draw with the chance to win $6,000.*

*Terms and conditions apply, click "go to site" to view on Prospa site.

Features of a Prospa Business Line of Credit

  • Special offer 1: Prospa offers applicants who settle their line of credit before 31st December 2019 a $0 activation fee. Terms and conditions apply.
  • Special offer 2: Applicants who settle their line of credit before 31st December 2019 will be entered into a prize draw with the chance to win $6,000. Terms and conditions apply.
  • Flexible amounts. You can get a credit limit of $2,000 to $100,000, depending on your business's needs.
  • Quick access to funds. You can be approved and receive your funds within 24 hours.
  • 12-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 14.95% p.a. 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.

Fees and charges

  • Line activation fee. You will need to pay an up-front $195 fee. This fee does not apply to customers who are approved before 31st December 2019, who will pay a $0 fee.
  • Monthly subscription fee. You will also be charged a $25 fee each month from the first time you make a draw down on the credit limit.

You will also need to pay a $25 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:

  • Be at least 18 years old
  • Be an Australian citizen or permanent resident
  • Own an Australian business with a valid ABN or ACN

You will also need to demonstrate six months of trading history for a new business, or three months if you have purchased an existing business.

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.

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