Prospa Business Loan – review 2026
Pros
- ASX-listed lender with strong market reputation
- Decisions typically within one business day
- Unsecured loans up to AUD 500,000 with no property collateral required
- Accepts businesses from 6 months of trading history
- AFIA Code of Lending Practice member
Cons
- Terms capped at 24 months shorter than some rivals
- Effective rates can be high for short-term loans
- Factor rate pricing can make cost comparison difficult
- Establishment fee of approximately 3% applies
- Loans structured with daily or weekly repayments
Prospa Business Loan Review
Prospa is one of Australia's best-known online small business lenders, listed on the ASX since 2019. It provides unsecured business loans from AUD 5,000 to AUD 500,000 with terms from 3 to 24 months.
Rates are expressed as a factor rate rather than an annual percentage rate for business loans, with the effective annual rate ranging from approximately 9.9% to 26% p.a. depending on credit assessment. Prospa uses business bank statement analysis and credit reporting data in its automated decisioning system.
Fees and Charges
Establishment fee of approximately 3% of the loan amount typically applies. No monthly fee. Early repayment may result in a rebate of unearned interest.
Requirements
- Australian-registered business with ABN
- Minimum 6 months trading history
- Minimum monthly revenue AUD 5,000
- 100 points of ID for director or guarantor
- Australian citizen or permanent resident director
Information in this review is based on publicly available sources and is for informational purposes only. Finatino.com is not a financial product broker. Before signing any contract, we recommend reading the provider's terms and conditions.