What’s in this Guide?
|🗺️ Products||Small Business Loans
Plus Business Loans
Business Line Of Credit
|💰Funding Amount||$2,000 to $500,000|
|📊 Loan Terms||3 to 36 Months|
|Min. Trading Period||6 Months|
|Min. Trading Turnover||$5,000 to $6,000 per month
|🛍️ Unsecured/Secured||Unsecured if under $150,000|
|💳 Funding Speed||Approval in 24 hours
Funding 1 t 3 days of approval
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 have the product to fulfill your capital needs.
Prospa small business loans are unsecured between $5000 and $150,000, but you can borrow up to $300,000 if you provide asset security. To qualify, your business needs a trading record of at least 12 months and a turnover of $4000+ per month. Loan terms are up to 3 years.
Business lines of credit with Prospa range between $2000 and $150,000 and are unsecured. Like with business loans, the same qualification requirements apply. Every 12 months, you can extend or close the credit line.
|Loan Products||Prospa Small business loan||Prospa Plus Business Loan||Prospa Line Of Credit|
|Loan Terms & Funding Size|
|💰 Loan Amount||$5,000 to $150,000||$150,000 to $500,000||$2,000 - $150,000|
|⏳ Loan Length||3 to 24 months||3 to 36 months||24 Months renewable|
|📆Payment schedule||Daily, Weekly||Daily, Weekly||Weekly|
|💳 Line of Credit Option?||❌||❌||✔️|
|💸Fees (excl. interest)||3% Origination Fee|
No Repayments for first 4 weeks
|3% Origination Fee|
No Repayments for first 4 weeks
|Weekly service fee|
|﹪Interest Rate Type||N/A||N/A||Fixed interest on drawdown|
|🔓 Unsecured Loans?||✔️ (Up to $150,000)||❌||✔️|
|👍 Early Repayment||✔️ (Fees reduced)||✔️ (Fees reduced)||✔️ (Fees reduced)|
|🎓 Qualification Basics||ABN or ACN|
Australian bank account
6 month of bank statements
|ABN or ACN|
Australian bank account
|ABN or ACN
Australian bank account
|🛍️ Min. Trading Qualification||6 Months||36 Months||6 Months|
|📅 Min. Turnover Qualification||$5,000 a month (depending on industry)||$1,000,000 p.a||$6,000 a month
(depending on industry)
|🗎 Low Doc Loans||✔️(Under $150,000)||✔️ (Partial Low Doc Under $250,000)||✔️|
|😕 Bad Credit OK?||✔️||✔️|
|Approval & Funding Speed|
|🏍 Fast Online Application||✔️||✔️||✔️|
|💨 Funding Speed||Approval within 24 hours|
Funding within 24 hours of approval
|Pre-approval in 6 hours|
Funding in 2 to 3 days
|Approval within 24 hours
Funding within 24 hours of approval
Prospa Advantages and Disadvantages
Prospa Review – Products Available
With Prospa you can choose between two types of business loans. These are:
- Prospa small business loans
- Prospa line of credit
Prospa small business loans
Prospa aims to help small businesses overcome the challenges they face when trying to get a loan from a bank.
Getting a loan from a bank can be difficult for the following reasons:
- Long application and approval process
- Too much paperwork
- Time lost in meeting and administration
- Good credit requirements
For this reason, a small business loan from a non-bank lender such as Prospa can be a good option. Prospa works with you to tailor your small business loan to the needs of the business. The lender does this by mixing funding amounts, loan terms, payment schedules, and interest costs to find a way that best suits your business requirements.
Most importantly, Prospa has a fast application and approval process with minimal paperwork. This frees up your time to focus on immediate cash concerns and manage your business.
Small business 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 $150,000 then you will not need to give collateral. Loans under $150,000 do not need business documents such as P&L statements.
Small Business Loan Eligibility / Qualification
To qualify for a business loan with Prospa, your business should have at least 6 months of trading and $6,000 per month in revenue. If you have purchased an existing business, then 3 months trading history for the business is acceptable. You will need to provide an ABN to show you are using the loan for business purposes.
Business Loans under $150,000 require no collateral or paperwork. In place of business financials such as P&L statements, Prospa requires you to provide electronic access to your bank statements.
Linking your bank statements is so Prospa can determine you meet their application requirements. It is secure and speeds up the application process meaning you can get your funds within 24 hours following your application.
Loans over $150,000 will require some security and business financials such as profit and loss, balance sheets.
Small Business Loan Funding And Loan Terms
Prospa small business loans range from $5,000 to $300,000. These loans come with a 3 month to 3 year repayment term and can be a daily or weekly schedule.
Small Business Loan Costs And Fees
Prospa includes the following costs with their small business loans
- 3% upfront or origination fee
- Interest rates
- Early payout fee – remaining principal + any accrued interest at the date of early payout + 1.5% of the remaining principal and any outstanding fees
- Late fees
Prospa uses an amortization schedule which means you will pay the same amount for repayment. The lender has no compounding interest fees, so if you make payments on time, your payments will always be predictable. These payments use direct debit. meaning you should never miss a payment.
Prospa offers SMART Box™ statement, which is a pricing disclosure tool created by the Australia Finance Industry Association (AFIA) as part of its Code of Lending Practice. This tool contains several metrics that make it easy for you to understand the exact cost you will pay and to assist with easy cost comparison with other lenders.
SMART Box™ means that there are no hidden costs. All your costs are clearly stated as part of the document.
When using the SMART Box™, the most important tool to look for is ‘the Total Repayment Amount’ which shows your total payback. Another useful metric is the Annual Percentage Rate (APR) which allows you to compare your cost with other lenders.
Prospa Review – Line Of Credit
A line of credit, much like a credit card, allows you to borrow from a credit facility up to a preapproved limit. The advantage of this type of loan is that you only borrow when you need funds and pay interest for what you draw from the credit facility. With a credit line, you can make multiple drawdowns without approval from the lender, as long as you do not exceed the credit limit.
Line Of Credit Qualification / Eligibility
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 has decent turnover then you are eligible to apply for a line of credit.
Like with a business loan, if you purchase an existing business, you will only need 3 months of trading history.
Line Of Credit Funding And Loan Terms
A line of credit allows you to access a credit facility of $2,000 to $150,000. This is a rolling facility which means you can reuse as borrowings that are paid back.
Prospa will create a 52-week repayment plan when you drawdown which means one payment per week. After 1 year, 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
One advantage of a line of credit is that you only pay interest on what you draw from the credit line.
This interest comprises 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. Besides interest, you will also have a weekly service fee.
To close your credit line before the 52 weeks is complete you will need to pay the remaining outstanding balance plus 1.5%.
Prospa Ease Of Application And Process
Prospa application forms take 3 minutes to complete. 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 asks include:
- How much do you wish to borrow?
- Why do you need the funds?
- Do you hold Australian Citizenship or permanent residency?
- Are you the director or owner of the business?
- How long have you been trading?
- How much are your monthly sales?
- What industry is your business?
From here you will provide your business details such as ABN, ACN, or legal trading name, personal details along with bank account number and bsb so the small business lender can perform a credit check.
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 business lender 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
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 along with basic business details.
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 for 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 the excellent customer experience they had.
Our Prospa Review Conclusion
Our Prospa review found this lender is one of the popular SME lenders in Australia as shown 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 has low doc loans for under $150,000.
The key thing to decide on if choosing Prospa and the type of loan is:
- Must your loan be unsecured?
- Do you know how much you need? and is it more than $300,000?
- 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 $150,000. If you need more than $300,000, then you may need to consider a different lender.
Greg Moshal and co-founder Beau 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 a simple web application process. This model has seen Prospa lend $500m in loans to over 12,000 Small business owners. With such numbers, Prospa is the number one online lender for small businesses in Australia.
On June 11, Propsa was listed on the ASX as Prospa Group Limits with the ticker PGL.
In 2018 ASIC performed a broad review of the non-bank small business lending contract terms, Prospa became the first non-bank lender to complete its review and ensure they comply with the AFIA Code of Lending Practice. Such commitment highlights the lenders commitment to transparency to its customers.
Prospa has its 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
Prospa holds an Australian Credit Licence: no. 454782 issued by ASIC and is a member of Australian Finance Industry Association.