Prospa Review

Small Business Lender Review - Prospa

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

Qualification criteria

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.