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Our view: Prospa is worth comparing because its products serve distinct needs: one defined expense, larger property-backed borrowing, or repeated short cash gaps. We would shortlist the product before the brand. The Small Business Loan's six-month trading threshold is more accessible than the line's two-year requirement, while an unused credit limit still attracts a service fee.
On a small screen, scroll the table sideways to see every column.
| What to check | Review finding |
|---|---|
| Small Business Loan | $5,000–$500,000; up to five years, with longer terms restricted by amount |
| Plus Business Loan | $500,000–$1 million; up to five years; property security |
| Line of credit | Up to $500,000; ongoing access subject to review |
| Small-loan starting criteria | Six months trading; $6,000 monthly revenue |
| Other starting criteria | Plus: three years and $2 million annual revenue. Line: two years and $6,000 monthly revenue. |
Where Prospa earns a place on the shortlist
Prospa's strongest feature is the choice between a fixed advance and reusable credit under the same provider. A business can compare those structures without pretending that every cash-flow problem is a term-loan problem. The smaller loan's published entry point also allows an owner to investigate finance before completing several years of trading. That is access to assessment, not evidence that a recently established business will receive a large limit.
The weakness is that the brand's broad funding message hides several different decisions. A $1 million Plus loan involves a more established borrower and property security. A line has an access charge even when little is borrowed. The Small Business Loan conditions restrict longer terms by amount. Our positive view of the range depends on matching one of those products to a credible repayment source, rather than selecting the largest approval available.
Use a term loan for a defined expense
The Small Business Loan has fixed weekly repayments. Terms beyond three years are limited to loans above $150,000. Prospa says upfront property security is not required up to $150,000, but larger amounts and combined exposure can change the security requirement.
The Plus loan is a separate product for larger, established businesses and requires upfront property security. Its ceiling should not be used to describe the unsecured Small Business Loan.
For a planned fit-out, compare the instalments with the time over which the investment generates cash. A shorter loan can cost less overall but place more pressure on weekly cash flow.
A line of credit suits repeated draws
Prospa's current line offers ongoing access with reviews every two years. If access ends, the agreement can provide a two- or four-year repayment period. This differs from older descriptions of a fixed legacy line.
Interest is calculated daily on the drawn balance and charged weekly, with weekly principal-and-interest repayments. Prospa also lists a weekly service fee of 0.046% of the facility limit from settlement and no establishment fee. That limit-based fee matters if you borrow only a small fraction of the available amount.
At the published 0.046% weekly service fee, a $100,000 limit costs $46 a week, or $2,392 across 52 weeks, before interest and any other applicable charges. This is a fee illustration, not a loan quote. It explains why choosing a large limit 'just in case' deserves thought. Extra repayments reduce line interest, but do not remove the limit-based service fee while it applies.
A fit-out and a stock cycle need different comparisons
Consider an illustrative café investing $80,000 in a fit-out. The improvement may generate receipts over several years, so a fixed loan can offer a clearer route to paying the debt down. The owner still needs cash for instalments while work closes the premises or sales build. A weekly payment that fits established turnover may be uncomfortable during those first months.
Now consider a wholesaler that repeatedly needs $30,000 to pay suppliers, then collects customer payments six weeks later. A line may avoid paying interest on funds between cycles. Its service fee must be included during those quiet periods, and the weekly repayments must fit the period before customer receipts arrive. These are examples of funding purposes, not Prospa quotations or approval predictions.
We would compare the café's full-term repayments with the value and life of the fit-out. For the wholesaler, we would model a year's actual draws, repayments and access fees. Using the same calculation for both businesses can make the wrong product appear cheaper.
Read fees and security by product
For the Small Business Loan, Prospa advertises an origination fee of 2%–3.5%. Ask how it affects the amount deposited and compare total scheduled repayments. The rate and final approval remain individual.
The public pages do not establish one guarantee rule for every Prospa product. Ask which business or personal assets are covered, whether a guarantee is required and what registrations may be made. An absence of an upfront property mortgage does not establish an absence of personal liability.
The application becomes more detailed as the amount rises
Prospa's Small Business Loan application guidance asks for six months of bank statements for amounts up to $250,000, with ATO access above $100,000. Above $250,000 it lists 12 months of statements, ATO access and financial statements. Identity and business details are also required. Other products have their own documentation requirements; use the relevant product checklist. A complete application and successful checks matter more than the advertised time needed to fill in the form.
That graduated process is useful for a smaller established business with current electronic records. It is less useful if the accounts, tax position and bank activity tell different stories. Prepare an explanation for unusual transfers, existing repayments and seasonal turnover before choosing an amount. The owner's requested sum is not the lender's assessment of spare cash.
The site distinguishes an initial eligibility check from the personal credit assessment involved in lending. Read the consent at the formal application stage. Speed is a potential administrative benefit; it does not remove verification or make funds certain to arrive before an urgent bill.
Early payout needs the actual contract
The Small Business Loan FAQ checked on 10 October 2026 states an early payout of remaining principal, accrued interest, 1.5% of remaining principal and outstanding fees. On a hypothetical remaining principal of $40,000, the 1.5% component alone would be $600; accrued interest and unpaid fees would be additional. This is the published small-loan formula, not a quote or a rule for every Prospa product or older agreement. Match it to your contract and request the payout for the date you expect to settle.
For a business expecting to repay from one large customer receipt, obtain both the term-loan payout on that date and the line's cost over the same period. Include fees for keeping the line open afterwards. The smaller initial weekly payment does not settle which structure costs less.
Account features and rewards are secondary benefits
Prospa promotes online balance and repayment management and an optional Qantas Points offer on eligible loans. Those features may be useful to an owner already managing payments digitally, but rewards carry an additional origination cost. Check the current rewards conditions and the dollar fee in the quote. An older points promotion should not decide a new loan.
We would value clear visibility of upcoming payments more highly than an award badge or a points balance. Neither establishes the rate offered to your business. If two loans are otherwise equivalent, administrative convenience may break the tie; it should not outweigh a material cost difference or unwanted security.
Our decision on Prospa
Prospa is a sensible comparison for an eligible business with a defined investment or recurring, repayable cash gap. Its product choice and published small-loan thresholds are strengths. The costs of keeping a line open, weekly payment burden and product-specific security are the main limitations.
We would look beyond it if the business needs a very short advance but cannot establish a favourable payout, if the fee-heavy unused line would mostly sit idle, or if repayment depends on continually taking more credit. Request a written offer directly from Prospa, then compare the same structure elsewhere. That gives the brand a fair assessment without assuming it must win because several products are available.
Ownership and the next comparison
Prospa was removed from the ASX official list at the close of trading on 9 August 2024 following its acquisition scheme. It should not be described as currently ASX-listed. The relevant borrower evidence remains the product and contract, rather than a former listing.
Compare OnDeck for a defined weekly loan, Lumi for another loan-and-line choice, or Shift (formerly GetCapital) for an overdraft. Keep the product type, net advance, repayment period and security equivalent.
Sources and review scope
The sources below support the product discussion and dated history. A historical announcement does not establish current pricing or availability. Where official pages disagree, the difference is identified in the review; the provider's written offer determines approval, costs and contractual obligations.
- Prospa Small Business Loan
- Prospa Plus Business Loan
- Prospa line of credit
- Prospa business-loan information
- ASX delisting announcement
This is an editorial assessment of published information, not an account of a test application or personal borrowing experience. See about SMB Loan for information about the site.
Product facts and sources
Provider sources checked 10 October 2026. This is a product-information check, not a test application.
- Published amount
- $5,000–$500,000
- Term and repayment structure
- Up to five years. Prospa’s calculator limits terms longer than three years to loans above $150,000.
- Initial criteria
- At least six months trading and $6,000 monthly turnover. The applicant must be an Australian citizen or permanent resident aged 18 or over. Individual assessment applies.
- Published costs
- The published origination fee is 2%–3.5%; optional Qantas rewards add 1 percentage point. The FAQ gives early payout as outstanding principal, accrued interest, 1.5% of the remaining principal and any outstanding fees.
- Security and guarantees
- No upfront asset security is required up to $150,000 while the borrower continues to meet their obligations. Above $150,000, including combined exposure above that level, property ownership is required and asset security may be required. This does not rule out a personal guarantee.
Source qualification: A current personal-guarantee clause was not verified. The absence of property security does not remove possible personal liability.