Prospa review

By   |   Verified by David Boyd   |   Updated 9th September 2021

Prospa review

Prospa, one of the most established lenders to businesses in Australia, are stepping into the void left by the big banks.

They are known for their simple application process, low fee structure, and transferring funds within 24 hours of approval. If you are considering your options, find out how Prospa works, what is on offer, and what you need to apply.

About Prospa

Prospa was founded in 2011 and trades on the ASX (ASX:PGL). It is based in Sydney and registered under the name Advance Pty Ltd. Sometimes they are referred to as Prospa Funding or Prospa Lending.

Prospa was founded with the goal of making it easier and faster for small business owners to secure funding. Flexibility, fast decisions, and dedicated business lending support have earned Prospa many awards including Excellence in Business Lending at the Finnies Awards and FinTech Lender of the Year at MFAA Excellence Awards three years running from 2018 to 2020.

Prospa has made it to #26 on the AFR Fast 100 (2020), #5 in Deloitte Technology Fast 50 Australia (2018), and #1 Financial Times 1000 High Growth Company in the Asia Pacific (2018).

Types of Prospa business loans

Secured or unsecured small business loans

Quick access to lump sums with a secured or unsecured business loan to invest in your business or to cover one-off expenses.

  • Loans between $5,000 and $300,000
  • Fixed loan terms between 3 months and 3 years

Line of credit

Provides money on demand to keep your business moving.

  • Facility between $2,000 and $150,000
  • Renewable term of 24 months
  • Pay interest only on what you use


  • Loans up to $300,000 available
  • Interest rate calculated based on risk, depending on business circumstances such as trading history, cashflow, industry, etc.
  • Repayment up to 3 years
  • Repayment holiday from 1 to 4 weeks (optional)
  • Flexible repayments (daily or weekly)
  • Early repayment without exit fees
  • Secured loans of $150,000+ (secured on assets, e.g. property)
  • Unsecured loans below $150,000
  • Fast decisions and funds within 24 hours (best case)


Who can qualify

  • Australian citizens or permanent residents
  • Be over 18 years old
  • Own an Australian business with a valid ABN/ACN
  • Those who have been trading for at least 6 months, or for 3 months after purchasing an existing business
  • Show turnover higher than $6,000 per month
  • Must consent to credit check
  • Not operating in one of Prospa’s excluded industries

Required documents

  • Driving licence
  • BSB and account number
  • ABN
  • Business name, entity type, business address
  • Estimated annual revenue
  • Financial statements, P&L, and cash flows for loans above $150,000
  • Amount you pay as rent per month
  • No asset security required upfront to access funding up to $150,000


Can you apply with bad credit?

Generally, no. If you were approved with poor credit, Prospa’s risk-based pricing policy would increase your interest rate. Remember that declined loan applications can have an impact on your credit score.

Can a startup with a short trading history apply?

Yes, if your startup has been trading for at least 6 months with cash flow. If you’ve been trading for less than 6 months, you are not eligible for a Prospa business loan.

Can sole traders apply?

Yes. Sole traders may apply, with more than 6 months of trading history.