Frequently Asked Questions
Frequently Asked Questions
About Prospa business loans
Prospa offers business loans of $5,000 to $300,000 with terms between 3 and 24 months and cash flow friendly repayments that are either daily or weekly.
You can apply for the Prospa business loan in under 10 minutes online or over the phone, receive a same day response and the funds could be in your account in 24 hours. Traditional business loans reference an interest rate per annum plus other fees and charges. The Prospa business loan is an upfront priced loan so you will know in advance the total amount payable including any interest, fees or charges. This is then broken down into either a daily or weekly repayment figure.
A Prospa business loan can be used for almost any business purpose including cash flow management, business renovations, marketing, to purchase inventory or new equipment, as general working capital and much more. The loan cannot be used for personal purposes.
The application process is easy and fast. Simply complete the online form in 10 minutes.
For loans of $150,000 or less, all you need to have ready is:
- Identification details (valid Driver’s Licence)
- Details about your business (including trading time, ownership details & an active Business Number)
For loans over $150,000 you will also need some basic financial statements like a P&L and cashflow, so we can evaluate the health of your business and see what kind of repayments your business can manage without stress.
We can often provide a response in one hour – as long as you apply during standard business hours and allow us to use the advanced bank verification system link to instantly verify your bank information online. If you choose to upload copies of your bank statements we can provide a decision in as little as one business day.
If you apply before 4pm on a business day and your application is approved, it is possible to have money in your account the next business day.
We provide loan amounts between $5,000 and $300,000. When you make an application for a specific amount we consider a variety of factors to determine the health of your business and the level of repayments your business can support. The total amount of your loan will depend on the specific circumstances of your business.
Fees & repayments
The Prospa business loan is an upfront priced loan so you will know in advance the total amount payable including any interest, fees or charges. To calculate the upfront price, Prospa uses a factor rate. A factor rate is expressed as a decimal figure not a percent.
A Factor Rate is a simple, straightforward way to calculate loan repayments. It is a total payback multiple of the loan amount (including the origination fee). For example:
Take a loan of $10,000 with a $250 origination fee (2.5%) and factor rate of 1.20. You would pay back $12,300 over the loan term. ($10,000 + $250) x 1.20 = $12,300
The Factor Rate you receive is specific to your business and is based on a risk assessment across a range of factors like your industry, how long your business has been operating, your turnover, the loan term and other factors.
There are no hidden fees for our business loans, and you’ll know exactly how much you need to pay, and when, from day one. There’s no compounding interest, no penalties for early repayment and no additional fees (as long as you make your payments on time).
Prospa doesn’t charge an Application Fee. You can apply for a loan with Prospa with no upfront cost or obligation to proceed.
The Origination Fee covers the costs associated with setting up and managing the loan. You are only charged this fee if you proceed with the loan. Our Origination Fee is 2.5% of the loan amount.
You can choose to repay the entire amount of your loan early at any time.
If you choose to repay your entire loan early, Prospa will provide you with a discount on the remaining interest that is payable on your loan. The level of discount applied to your repayment amount will depend on how far you are into the loan term and will be at least 25% of the remaining interest payable on your loan.
There are no additional fees for early repayment and no balloon payment at the end of your loan. Any outstanding late fees or default fees will not be waived. Once you make the final payment your balance will be $0.
If you wish to repay the entire balance of your loan early, you should ring Prospa on 0800 005 797 to obtain your early repayment figures and relevant payment details.
To help you avoid missing repayments and to fit in with your cash flow cycle we offer repayments that are either daily or weekly. These are automatically deducted from your nominated business account.
Security & privacy
Yes. We use industry recognised encryption standards to protect your personal, sensitive and financial data and we’re ISO 27001 certified for our commitment to customer security and privacy. We use an advanced bank verification system link to instantly verify your bank account information online so we can provide a fast response.
About business loans
Asset-based borrowing is when a business owner uses an asset they own to secure a loan. The asset can be either a personal asset like the family home, or a business asset like a truck or piece of equipment.
The vast majority of lenders, including the big banks, tend to secure loans against an asset. If you have trouble paying back the loan then your asset may be sold by the lender. In essence it’s a way of securing new financing by using the value of what you already have.
For loans up to $100,000 no asset security is required to access the money, however we do require a personal guarantee. As long as you follow your loan obligations (as detailed in your loan contract document), asset security will never be required. For loans of over $100,000 Prospa generally takes a personal guarantee and security in the form of a charge over assets.