Prospa Review (2021)

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RATED:

90.0
🗺️ ProductsBusiness Loans
Merchant Cash Advance
💰Funding Amount$5,000 to $300,000
📊 Loan Terms3 to 36 Months
💰 Min. Trading Period12 Months
💰 Min. Trading Turnover$4,000 to $6,000 per month
🛍️ Unsecured/Secured Unsecured if under $100,000
💳 Funding SpeedApproval in 24 hours
Funding 24 hours of approval

Prospa logo with words Prospa Review under it

Our Prospa review found this SME lender offers small business loans and a business line of credit. With 2 very different loan options, Prospa may be the product to fulfil your capital needs.

Prospa small business loans are unsecured between $5000 and $100,000 but you can borrow up to $300,000 if you provide asset security. To qualify, your business needs a trading record of 12 months or more and a turnover of $4000+ per month. You have up to 3 years to repay the loan.

Business lines of credit can range between $2000 and $100,000 and are unsecured. Like with business loans, the same qualification requirements apply. You can extend or close the credit line after 12 months.

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Loan ProductsSmall business loanLine Of Credit
Loan Terms & Funding Size
💰 Loan Amount5,000 to $300,000$2,000 - $100,000
⏳ Loan Length3 to 36 months12 Months renewable
📆Payment scheduleDaily, WeeklyWeekly
💳 Line of Credit Option?✔️
Loan Costs
💸Fees (excl. interest)3% Origination FeeWeekly service fee
﹪Interest Rate TypeSimple interest rate
(from 9.9% per year)
Fixed interest on drawdown
🔓 Unsecured Loans?✔️ (Up to $100,000)✔️
👍 Early Repayment✔️ (Fees reduced)✔️ (Fees reduced)
Loan Qualification
🎓 Qualification BasicsABN or ACN
Australian bank account
Australian citizen
ABN or ACN
Australian bank account
Australian citizen
🛍️ Min. Trading Qualification12 Months12 Months
📅 Min. Turnover Qualification$4,000 to $6000 a month (depending on industry) $4,000 to $6000 a month
(depending on industry)
🗎 Low Doc Loans✔️(Under $150,000)✔️
😕 Bad Credit OK?
Approval & Funding Speed
🏍 Fast Online Application✔️✔️
💨 Funding SpeedApproval within 24 hours
Funding within 24 hours of approval
Approval within 24 hours
Funding within 24 hours of approval

Prospa Pros and Cons

Pros

  • Low doc loans under $150,000 (minimal paperwork)
  • Unlimited drawdowns up to limit on credit lines
  • SMART Box™ statements
  • Early payout permitted
  • Loans best for: All industries

Cons

  • Not for start-ups
  • No personal loans
  • Asset collateral required for loans over $100,000
  • Business with credit rating under 550 may struggles
  • No Merchant Cash Advance Products

Prospa Review - Products Available

With Prospa you can choose between two types of business loans. These are:

  1. Prospa small business loans
  2. Prospa line of credit

Prospa Small Business Loans

Short-term loans with Prospa are best if you know how much funding you need, and you need it fast. As a non-bank online lender, Prospa can approve loans on the same day, a feature not available with many traditional banks.

The online application takes only 10 minutes, if your loan is under $100,000 then you will not need to give collateral. Loans under $150,000, do not need to business documents such as P&L statements.

Prospa Line Of Credit

Prospa lines or credits are pre-approved capital loans that you can draw from any time in the next 12 months. The advantage of the arrangement is that you only pay interest on what you use, while you use it.

Credit lines are best if you don’t know how much capital you may need, but wish to have access to funding without needing to go through the loan application process. Prospa requires a weekly repayment and give one year to pay off the credit line.

Prospa Review - Small Business Loan

Prospa aims to help small business overcome the challenges they face when trying to get a loan from a bank.

Getting a loan from a bank can result in challenges such as

  1. Long application and approval process
  2. Too much paperwork
  3. Time lost in meeting and administration
  4. Good credit requirements

For this reason, a small business loan from a non-bank lender such as Prospa can be a good option.

Small business loans can be tailored to your business needs giving your business flexibility to find a loan that works best for you.

Most importantly however they offer fast application and approval with minimal paperwork. This frees up your time to focus on immediate cash concerns and most importantly, manage your business.

Small Business Loan Eligibility / Qualification

Minimum Time Business Operating

Minimum Time Business

6 Months
(new business)
3 Months
(buy existing business)

Minimum Turnover

Minimum Turnover

None specified but use $4,000 ($6,000 for construction) as a guide

Credit History

Credit History

N/A

Other

Other

Valid ABN/ACN
Australian bank account
Loans over $100,000 need
1. Security
2. Finance documents

Prospa’s application process is simpler than with a bank. Loans and credit lines less than $100,000 need no paperwork other than 6 months of business bank statements. As part of the application, Prospa will ask you to link your bank BSB and CRN so they see if you meet the minimum monthly turnover requirements.

The minimum turnover requirement as not specified on Prospa’s website will be between $4000 and $6000 depending industry. You can use the loan for any business need as long as it’s not for personal purposes.

Small Business Loan Funding And Loan Terms

Loan Amount

Loan Amount

$5,000 – $300,000

Term Length

Term Length

3 Months – 36 Months

Payment Schedule

Payment Schedule

Daily, Weekly

Low Doc Loans

Low Doc Loans


(if under $150,000)

Unsecured-Secured

Unsecured/
Secured

Unsecured under $100,000
Secured over $100,000

Prospa business loans and lines of credit have different loan terms. If you are looking for large loans, then a business loan is your better choice. With this loan, you can borrow up to $300,000 with up to 3 years to repay the loan.

If you need less than $100,000, then you need to decide how you wish to use the loan. Depending on your needs, a line of credit may be a better choice.

Small Business Loan Costs And Fees

Origination Fee

Origination Fee

3% Origination fee

Interest Rate

Interest Rate

Simple interest
starts From 9.9%

Other Costs

Other Costs Details

SMART Box™ available

No Hidden fees

No Hidden fees

Early Payment Permitted

Early Payment Permitted

(Remaining principal + any accrued interest) plus
(1.5% of remaining principal and outstanding fees)

Business term loans have an upfront or origination fee of 3%. Prospa subtracts from your loan, the disbursement amount you receive in your bank account will be less than you request.

Prospa have no hidden fees, your small business loan contract will include all your cost. There are no compounding interest fees and as long as you pay on time no other fees such as late fees or credit card fees.

Prospa’s simple interest rate starts from 9.9% per year. This is only a starting point as the interest rate can vary depending on factors such as your business credit score, cash flow and loan amount. Simple interest does not include other the cost of any fees.

If you want to see your interest with all costs then you need the annual percentage rate (APR). This small business lender will provide this if you request a SMART Box™  statement.

A SMART Box™ statement is an AFIA industry standardised loan statement that allows you to compare loans with other lenders that give SMART Box™. This statement will include cost metrics such as the APR.

Prospa Review - Line Of Credit

A line of credit allows your business to borrow up to a pre-approved limit when you need extra capital.

If your business is uncertain how much capital is needed, then a credit line is the best option. Unlike a small business loan where you pay interest on the entire loan, a credit line means you only pay interest on the amount you draw. As you can borrow from the credit facility anytime and only pay interest on what you use, a credit line can give you the best borrowing versaility.

Line Of Credit Qualification / Eligibiility

Minimum Time Business Operating

Minimum Time In Business

6 Months
(new business)
3 Months
(buy existing business)

Minimum Turnover

Minimum Turnover

None specified but use $4,000 ($6,000 for construction) as a guide

Credit History

Credit History

N/A

Other

Other

Valid ABN/ACN
Australian bank account

Our Prospa review found qualification for a line of credit is much the same as a small business loan. As long as your business has a trading history of 6 months and earns decent turnover then you are eligible to apply for a line of credit.

Line Of Credit Funding And Loan Terms

Loan Amount

Loan Amount

$2,000 – $100,000

Term Length

Term Length

12 Months renewable

Payment Schedule

Payment Schedule

Weekly

Low Doc Loans

Low Doc Loans

Unsecured-Secured

Unsecured/
Secured

Unsecured

A line of credit allows you to access a credit facility of $2,000 to $100,000.

This is a rolling facility which means you can reuse as borrowings that are paid back.

Each drawdown is a separate loan meaning you will have 1 year to pay the loan from the time of your drawdown.

Prospa will create a 52-week repayment plan when you drawdown which means you will make 52 payments. This detail is important because 12 months after activate the credit line facility you will need to either extend the facility a further 12 months or close the facility. Should you close the facility, you will need to pay all outstanding amounts.

Line Of Credit Costs And Fees

Origination Fee

Origination Fee

3% Origination fee

Interest Rate

Interest Rate

Fixed interest
(only on funds drawn)

Other Costs

Other Costs Details

A weekly service fee
SMART Box™ available

No Hidden fees

No Hidden fees

Early Payment Permitted

Early Payment Permitted

(Remaining principal + any accrued interest) plus
(1.5% of remaining principal and outstanding fees)

One of the advantages of a line of credit is that you only pay interest on what you draw from the credit line.

This interest consists of a 3% origination fee for each drawdown and fixed interest rate. Prospa only applies this interest to any outstanding amounts which are calculated daily on the outstanding balance. In addition to interest, you will also have a weekly service fee.

To close your credit line before the 52 weeks is completed you will need to pay the remaining outstanding balance plus 1.5%.

Prospa Ease Of Application

Prospa application forms can be completed in under 3 minutes. The application process is a series of questions to find out if you qualify and do not need business details at this point.

Questions Prospa ask include:

  1. How much do you wish to borrow?
  2. Why do you need the funds?
  3. Do you hold Australian Citizenship or permanent residency?
  4. Are you the director or owner of the business?
  5. How long have you been trading?
  6. How much are your monthly sales?
  7. What industry is your business?

From here you will provide your business details such as ABN, ACN or legal trading name, personal details.

When you provide this information, Prospa will check if you are eligible for a loan with them. If successful, expect a call from a Prospa Fintech lending specialist within 24 hours. They will walk you through the last steps, which will include choosing the loan you need and linking your bank details.

Note: You can also call Prospa and speak with a loan specialist for your application.

Prospa Funding speed

Online Application

Online Application

3 Minutes

Approval

Approval

With 1 hour possible
(during business hours)

Funding

Funding

Within 24 Hours of approval

You can complete a Prospa online application in 3 minutes, which is faster than any other lenders.

The application is fast as the application is only to confirm your business qualifies for a loan, basic business details will also be required.

Should the business qualify for a specialist will then call you within hours to take you through the rest of the application process.

How soon a Prospa loan specialist calls you will depend on the time of the day you apply. If you apply before 4 pm, then it is possible a specialist can call and approve your loan application on the same day but expect this will be the next day.

Prospa will transfer funds to your business bank account with 24 hours of you signing the loan contract.

Prospa Review Of Customer Service

Customer service is available Monday to Friday: 8.30 am to 7 pm. You can contact them by 1300 phone, email, website email and live chat. Fast business loans tested their live chat, you may have to wait a little while but their service is helpful. Expect them to ask if they can ask information about you so they can best help you.

Prospa TrustPilot And Customer Reviews

With over 5700 reviews on Trustpilot and a score of 4.9 out of 5 or 5 Stars meaning Excellent, you can be confident this lender will provide a top level of service. Prospa reviews have wide praise for their excellent customer service.

Prospa-Trustpilot

Our Prospa Review Conclusion

Our Prospa review found this lender is one of the popular SME lenders in Australia as demonstrated by their TrustPilot score and the many awards they have won.

This SME lender has a simple online application process and can provide capital fast. A big plus is Prospa have low doc loans for under $150,000.

The key thing to decide on if choosing Prospa and the type of loan is:

  1. Must your loan be unsecured?
  2. Do you know how much you need? and is it more than $300,000?
  3. What you need the loan for?

Fast Business Loans like the fact that you can choose between two products that best suit your needs. This is a big plus as each product benefits different users but provides a solution that covers most business needs. Business loans are best if you wish to make a single purchase whole a credit line is useful if you want to maintain cash flow.

Prospa will only give you an unsecured loan if you are borrowing under $100,000. If you need more than $300,000, then you may need to consider a different lender.

About Prospa

Greg Moshal and co-founder Beu Bertoli started Prospa in 2011 with a vision to ease access for funding for Australian small businesses.

Prospa’s business model is built on a proprietary lending platform and simple web application process. This model has seen Prospa lend $500m in loans to over 12,000 SME.

Prospa have their headquarters in Sydney, NSW. This lender is award-winning, having won titles such as:

  • MFAS National Fintech lender of the year, 2020, 2019, 2018
  • AFR Fast 100, 2020, 2018, 2017
  • Mortgage Global 100, 2020
Awards

Prospa holds an Australian Credit Licence: no. 454782 issued by ASIC and is a member of Australian Finance Industry Association.