Prospa Review

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Small Business Lender Review - Prospa

Small Business Lender Review - Prospa


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Overview
Prospa understand that growth opportunities and unexpected challenges pop up when you’re running a business, and that timing can be critical.

They offer award-winning business loans of between $5,000 and $250,000, with cash-flow friendly payments and the possibility of funding within just 24 hours.

Prospa have supported more than 12,000 Australian SMEs with more than $500 million in small business loans.


Features


  • Short-term loan you can use for any business purpose
  • $5,000 and $100,000 unsecured, up to $250,000 secured
  • Flexible repayments – monthly or weekly to suit your cash flow
  • Fast application – funds could be in your account within 24 hours
  • No penalty for early repayment
  • Interest cost fixed up-front


Summary

NameProspa Business Loan
Min Loan Amount $5,000
Max. Loan Amount $250,000
Minimum Loan Term 3 months
Maximum Loan Term 24 months
Loan Security Unsecured up to $100,000
Interest type Factor rate
Repayments Weekly or monthly

Qualification criteria

TypeCriteria
Minimum turnover $6,000 per month
Minimum trading period 6 months (3 if you’ve purchased an existing business)

Cost



Because most of their small business loans are for less than 12 months, Prospa use a factor rate rather than an interest rate to calculate the cost of your loan.

This means your interest will be calculated up-front as a multiple of the amount you borrow. The factor rate will depend on many factors including how much you want to borrow, the term of the loan and the perceived risk level.

You’ll also be charged an establishment fee for the loan. Both this and your interest will be added to your loan balance and repaid as part of your monthly or weekly instalments.

There are no fees for early repayment. However, if you fall behind on your payments or default on your loan you will incur penalties.


How to apply



Prospa has a fast, simple online application process, which should take no more than ten minutes.

For loans up to $50,000, all you need to provide is:

  • Your driver licence number
  • Your ABN
  • Your bank statements (last 3 months)
  • Your BSB and account number.


For loans over $50,000, you’ll also need to provide some basic financial statements, like a P&L and cash flow.

You can choose between using Prospa’s advanced bank verification system or uploading PDFs of your last 3 months’ transactions. If you use their bank verification system you could have a response within as little as an hour – otherwise you can expect a response the next business day.

If you apply before 4pm on a business day, and your application is approved, you could have the funds in your account the same or next business day.

How Does Prospa Compare?


LenderProductTermLoan RangeInterest TypeFeesSecurityRepayments
Prospa Business Lender Logo Prospa Business Loan 3 – 24 Months $5k – $250k Factor rate Establishment fee Unsecured up to $100k Weekly or fortnightly
Spotcap Business Lender Logo Spot On Business Loan 1 – 24 Months $10k – $250k Percentage, but only on balance drawn Drawn on fee (% of credit limit) Unsecured Weekly, fortnightly or monthly
GetCapital Business Lender Logo GetCapital Flexible Business Loan 6 – 24 Months $5k – $500k Percentage 2% Draw down fee, plus $3.85 direct debt fee per week Unsecured Weekly
Businessloans Business Lender Logo Flexible Business Loan 6 – 24 Months $5k – $500k From 0.87% per month 2% Draw down fee, plus $3.85 direct debt fee per week Unsecured Weekly
Ondeck Business Lender Logo OnDeck Small Business Loan 6 – 24 Months $10k – $250k Percentage Establishment fee of 2.5% Unsecured Daily or weekly
Beyond Merchant Capital Business Lender Logo Beyond Merchant Capital Unsecured Business Loan 9 – 12 Months $10k – $500k Factor Rate None Unsecured Daily or weekly
Moula Business Lender Logo Moula Business Loan 6 – 12 Months $5k – $250k 0.75% to 2% per fortnight None Unsecured Fortnightly
Business Fuel Business Lender Logo Business Fuel Business Loan 3 – 18 Months $5k – $250k Factor Rate None Secured or Unsecured Weekly or monthly
MaxFunding Business Lender Logo Max Funding Unsecured Business Loan 1 – 12 Months $2k – $300k From 1.8% per month Fees are laid out in loan agreement Unsecured Weekly or tailored

 

Grow the business you want.

See if you qualify