Prospa Review

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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

Name	Prospa 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

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

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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?

Product	Term	Loan Range	Interest Type	Fees	Security	Repayments
Prospa Business Loan	3 – 24 Months	$5k – $250k	Factor rate	Establishment fee	Unsecured up to $100k	Weekly or fortnightly
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 Flexible Business Loan	6 – 24 Months	$5k – $500k	Percentage	2% Draw down fee, plus $3.85 direct debt fee per week	Unsecured	Weekly
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 Small Business Loan	6 – 24 Months	$10k – $250k	Percentage	Establishment fee of 2.5%	Unsecured	Daily or weekly
Beyond Merchant Capital Unsecured Business Loan	9 – 12 Months	$10k – $500k	Factor Rate	None	Unsecured	Daily or weekly
Moula Business Loan	6 – 12 Months	$5k – $250k	0.75% to 2% per fortnight	None	Unsecured	Fortnightly
Business Fuel Business Loan	3 – 18 Months	$5k – $250k	Factor Rate	None	Secured or Unsecured	Weekly or monthly
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.

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