Prospa business loans
You can get a business loan of up to $500,000 from New Zealand’s small business lending specialist.
Specialising in finance for small businesses, Prospa has now expanded into New Zealand after operating successfully in Australia. This award-winning lender has been featured on numerous media outlets and allows small businesses to seize opportunities and manage their cashflow.
With a Prospa business loan, you can focus on what’s next for your business, with a simple application process and quick decisions on the funding you need.
|Product Name||Prospa Business Loan|
|Benefit Description||No repayments for the first 4 weeks on Prospa business loans. Approved customers can choose to take an optional initial no repayment period between 1 to 4 weeks. Interest will accrue from the loan settlement date to the end of the loan term. Subject to approval criteria, T&Cs apply.|
|Interest Rate (p.a.)||13.9% - 29.9%|
|Min. Loan Amount||$5,000|
|Max. Loan Amount||$500,000|
|Loan Term||3 months to 3 years|
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How do Prospa Business Loans work?
Whether you are needing a cash injection to buy stock, are moving into a new office or need to purchase a work vehicle, Prospa provides loans to keep small businesses moving.
You can borrow from $5,000 to $500,000 for any business purpose and have up to 36 months to repay. Repayments are made daily or weekly depending on what works for your cash flow.
Prospa strives to have a shorter and less involved application process with fewer documents required than traditional banks. There is no fee to apply and no obligation to proceed – just fill in your details on the Prospa website and a Business Lending Specialist will be in touch to go through your application. You’ll receive a decision quickly and could have funds in your bank account in less than 24 hours.
Features of Prospa business loans
- Quick application. Submit your application in 10 minutes.
- Quick fund release. Funds are usually released within 24 hours. If your loan is approved before 4pm on a business day, you’ll receive funds in your bank account the next business day.
- Various loan amounts. Borrow up to $500,000 for a term 3 months to 3 years.
- Flexible payments. Choose between daily or weekly repayments that will be automatically debited from your bank account.
- Security. For loans under $150,000, no asset security is required upfront but you will need to provide a personal guarantee. To be approved for a business loan of over $150,000, Prospa requires asset security as well as a personal or director’s guarantee.
- Encryption security. Prospa is ISO 27001 certified and uses industry recognised encryption standards to protect your personal data.
How much does the loan cost?
Prospa does not charge an application fee but an origination fee of 2.5% of the loan will apply if you proceed with the loan.
You will be assigned an interest rate that is determined by factors including your creditworthiness, the loan amount, your cashflow, whether you are using an asset as collateral and how long you’ve been in business. There is no compounding interest.
Exactly how much your loan will cost will be presented to you before you sign your loan agreement. There are no hidden fees and your repayments will remain the same.
How to apply for a loan from Prospa
To apply, you’ll need to meet the following requirements:
- Be at least 18 years of age
- Be a New Zealand citizen or permanent resident
- Own a business with a valid NZBN
- Have a monthly turnover of at least $5,000
- Have been trading for a minimum of 6 months
To qualify for a Prospa Plus Business Loan of up to $500,000, you will need to have been trading for a minimum of three years and have a minimum annual turnover of at least $700,000.
Required supporting documents
- Identification, such as a valid New Zealand driver’s licence
- Documents showing ownership over the business
- An active NZBN
- Full financials such as bank statements, profit and loss statement and cash flow details.