Prospa NZ

Prospa NZ, small business funding in New Zealand

Prospa NZ presents itself as an online lender specialising in small business funding in New Zealand. Its offering is built around three products: the Small Business Loan, the Business Loan Plus and the Line of Credit, all managed through a single digital platform. The company claims to be New Zealand's number one online lender, with over twelve years of experience, NZ$4 billion in small business loans and more than 50,000 businesses funded.

Funding products

Prospa NZ's catalogue distinguishes three solutions based on amount and purpose:

• Small Business Loan: same-day access to funds, with amounts from NZ$5,000 to NZ$150,000. It is designed for immediate liquidity needs.
• Business Loan Plus: a larger lump sum, from NZ$150,000 to NZ$500,000, aimed at longer-term investment plans.
• Line of Credit: ongoing access to funds from NZ$2,000 to NZ$500,000, with the option to pay interest only on what is used.

The company also offers a business transaction account (Business Account) to help manage cash flow, as well as the Prospa App, an application that allows you to control finances and manage payments and invoices from anywhere. The app integrates with Xero for accounting reconciliation and with Bill Pay for bill payment.

Flexibility and payment management

Prospa NZ highlights the possibility of making unlimited extra repayments on business loans, without penalty, and of paying interest only on the capital used on the line of credit. Cash flow and invoice management is centralised in the Prospa App, which includes smart features such as integration with Xero and Bill Pay.

Application process and timelines

The application is made online and, according to the company, can be completed in about ten minutes. For amounts between NZ$5,000 and NZ$150,000, a response can arrive within an hour if you apply during standard business hours and use the advanced bank verification system to validate banking information online. If you choose to upload copies of bank statements, the decision may take up to one business day. For amounts between NZ$150,000 and NZ$500,000, the final approval timeframe is around two to three days, although it can be shortened depending on the circumstances of each application. Once the agreement is finalised, funds can be available in the account in as little as one hour.

Eligibility requirements

To access funding, the applicant must be a New Zealand citizen or permanent resident, over 18 years old and the owner of a New Zealand business with valid NZBN/IRD. Requirements vary by product:

• Small Business Loan: minimum of six months of trading history, monthly turnover over NZ$6,000, active NZBN and valid driver's licence, and a good credit history.
• Business Loan Plus: minimum of three years of trading history, monthly turnover over NZ$6,000, active NZBN and valid driver's licence, and a good credit history.
• Line of Credit: minimum of two years of trading history.

Approval and terms are subject to standard credit assessment, and not all amounts, terms or interest rates are available to all applicants.

Change of mind policy and security

Prospa NZ offers a 14-day change of mind policy: if the customer decides not to proceed with the loan, they can cancel the agreement and return the funds at no cost within 14 days of signing. After that period, there is the option to settle the loan in full to minimise interest, although fees and charges apply.

Regarding security, the company states that it uses industry-recognised encryption standards to protect personal, sensitive and financial data, and claims to be aligned with ISO27001 and NIST CSF. The advanced bank verification system allows account information to be validated online to speed up the response.

Customer profile and sectors

Among the sectors Prospa NZ indicates it serves are agriculture, mining, arts and lifestyle, building and trade, financial services and insurance, hair and beauty, health, hospitality, manufacturing, professional services, real estate and property management, services, retail, transport and automotive, wholesaling and others. The company collects customer testimonials from sectors such as plumbing, technology, eco-friendly products, automotive and leisure.

Partner programme

Prospa NZ has a partner programme that offers resources, articles and an access portal for partners, with the aim of expanding its network of collaborators. Partners can access their own dashboard and curated content.