Prospa

Prospa: financing and payment management for small businesses in Australia

Prospa presents itself as a single platform that brings together financing and payment management solutions for small businesses. The company claims to be the leading online lender for small businesses in Australia, with over 14 years of experience, $5 billion in loans issued, and more than 50,000 businesses funded.

Financing products

The loan catalog includes three main options:

• Small Business Loan: fast access to funds from $5,000 to $500,000.
• Business Loan Plus: a single sum above $500,000 and up to $1 million for larger projects.
• Line of Credit: ongoing access to funds from $2,000 to $500,000.

The company states that the application process can be completed online in about 10 minutes and that a response can arrive in as little as one hour if submitted during business hours and using the advanced bank verification system. Funds can be available in the customer's account in approximately one hour after settlement.

Eligibility requirements

For all financing lines, owners must be over 18 years old and Australian citizens or permanent residents. Additional requirements vary by product:

• Small Business Loan up to $500,000: at least 6 months of trading activity and monthly turnover of $6,000.
• Business Line of Credit up to $500,000: minimum 2 years of trading activity, monthly turnover of $6,000, and ownership of real property or an asset.
• Business Loan Plus from $500,000 to $1 million: minimum 3 years of trading activity, annual turnover of $2 million, and ownership of real property or an asset.

For financing up to $150,000, no asset security is required upfront, provided the contract obligations are met. Above that amount, or when combined financing exceeds $150,000, ownership of real property is required and security over assets may be requested.

Payment solutions and business account

In addition to loans, Prospa offers a transaction business account with rewards on eligible payments, the ability to use your own credit card to pay bills where cards are not normally accepted, and the Tap to Pay feature to accept contactless payments from the merchant's device. It also includes bill and payment management, and connection with Xero to sync and reconcile transactions.

Rewards

The Prospa Rewards platform allows you to accumulate points for business payments. Customers can also choose to earn Qantas Points on Prospa business loans. The company offers a calculator to estimate the points you could earn.

Fees and costs

According to published information, an establishment fee of 3-3.5% applies to the Small Business Loan and 2-3% to the Business Loan Plus. For the line of credit, the fee for ongoing access to funds is 0.046%, which for a $40,000 line equates to less than $3 per day. No origination or establishment fee is charged on the line of credit. For financing over $150,000, a registration fee may apply if a caveat or mortgage is registered over real property.

Early repayment and security

The borrower can repay the loan early at any time. The amount is calculated as the sum of the outstanding principal and accrued interest at the early payout date, plus 1.5% of the remaining principal and any outstanding fees. The company states that it uses industry-recognised encryption standards and is aligned with ISO27001 and NIST CSF to protect customers' personal, sensitive, and financial data.

Customer profile and sectors

Prospa serves small businesses in sectors such as building and trade, professional services, health and beauty, hospitality, transport, and retail. The website includes testimonials from funded businesses, such as Black Market Bagels, Tita's Cakes, Donna's Beauty Cottage, Workdog Creative, and Escape to paradise, describing how they have used the funds to scale, manage cash flow, or test new business models.