Prospa Business Loan
You can borrow from $5,000 up to $500,000 with Prospa. An upfront original fee of 3% will apply and interest rates are risk-based
Prospa offers unsecured business loans of between $5,000 up to $150,000, if you offer property as collateral, you can borrow up to $500,000. Loan terms are between 3 months and 3 years. Applications are online, and if approved, you could receive your funds on the same time. There is no early repayment fee, but the interest rates vary greatly. The interest rates are risk-based, and can range from 9.9% p.a. up to 26.9% p.a. It is based on your industry, experience, cashflow and creditworthiness. This means that if you have a good credit rating and the right experience and cash flow, you’ll receive a lower rate. But if you don’t check all these boxes, your rate will be high. There’s also an upfront fee of 3% the borrowed amount.
3% origination fee
Max. Loan Amount
3 months to 3 years
How does the Prospa Business Loan work?
This is a loan secured by a personal guarantee or by asset security that can be used to finance a number of business purposes. You can borrow up to $150,000 on a loan with no asset security, or up to $500,000 on a secured loan with property collateral. Terms are for between 3 months and 3 years.
You can select either daily or weekly repayment terms, depending on what works best for your business. The payments will be deducted automatically from a nominated business account and you can also repay your loan early without penalty.
The features that come with a Prospa Business Loan
Before applying, it's important to consider all the features to ensure it's the right loan for you:
- Easy application process. You can apply for the business loan online in about ten minutes and receive a response in as little as one hour. If you are approved before 4pm on a business day, you could receive your funds that same day.
- Range of loan amounts. The amounts available – $5,000 and $500,000 – make this loan suitable for a range of businesses and purposes. However, the maximum loan amount will vary depending on if you choose a secured or unsecured loan.
- Short loan terms. Prospa offer loans terms between 3 to 36 months. This means you can have the loan repaid without accumulating too much debt.
- Security. To be approved for a loan of over $150,000 you will be required to own a property. Loans of under $150,000 only require a personal guarantee.
- Flexible repayments. You can choose repayments to best suit your business' cash flow. Both daily and weekly repayments are available.
- Early repayment. You're able to repay your loan early without penalty.
How much will the loan cost?
The following fees and charges should be considered before you apply for your loan:
- Interest rate. Prospa uses risk-based pricing to determine your rate, which can range from 9.9% p.a. to 26.9% p.a. Your rate is determined by factors including your industry, years in business, cash flow and creditworthiness. The better your business cash flow, experience and credit rating, the lower the rate you're likely to receive.
- Establishment fee. This fee will be added onto the amount you owe at the beginning of the loan term.
- Late payment fees and default fees. These will only be charged if you fail to make repayments on time or do not repay your loan.
Here's how to apply with Prospa
If you're ready to submit your business loan application with Prospa, follow the simple online process to get started.
First, check you meet the following eligibility criteria:
- Be at least 18 years old
- Be an Australian citizen or permanent resident
- Own an Australian business with a valid ABN or ACN
- Are not operating in a Prospa excluded industry
If you are applying for the unsecured loan:
- Have been trading for at least 6 months
- Have turnover of more than $6,000 per month
If you are applying for the secured loan:
- Have been trading for at least 3 years
- Have turnover of more than $100,000 per year.
If you meet these criteria then you just need the following information on hand to complete your application:
- Loan details. List how much your business needs, how soon it needs it and why you are applying for the loan.
- Personal details. Your name, contact information and driver's licence number.
- Business details. Business name, entity type, business address, estimated annual revenue, how long you've been in business and the amount you pay in rent per month.
- Bank statements. To verify the business' financials, you will need to upload the last three months of your business' bank statements.