Prospa Business Loans: Best Small Business Loans, Credit Lines 2024

This Prospa review focuses on Prospa’s small business loans and credit line for short-term financing. Business loans of up to $500,000 are available, and if you require flexibility, a $150,000 credit line with multiple drawdowns may be ideal.

Prospa’s online-first approach makes it an excellent business loan lender for business owners and entrepreneurs who can access short-term working capital quickly and manage their application process online. 

Based on firsthand experience, we approached Prospa to get a business loan when we wanted to expand our business. We had the money in our bank account within 48 hours.

Prospa New Zealand launched in 2019 and has become a leading business lending provider. Today, they have provided more than $500 million in funding to New Zealand-owned small businesses and sole traders.

Key features of a Prospa loan

Prospa offers three types of loans:

  • Small Business Loan, a
  • Prospa Plus Business Loan and a
  • Line of Credit.
  • Small Business Loan:

    $5,000 and $100,000 loans for covering working capital and everyday expenses.

  • Business Loans Plus:

    $100,000 to $500,000 loans to invest in business growth opportunities.

  • Business Line of Credit:

    up to $150,000

  • Personal Guarantee (Important):

    Prospa requires a personal guarantor, usually a person actively engaged in the business, such as a director or shareholder.

  • Asset Security:

    No upfront property security is required for funding up to $150,000. For amounts above $150K, security over business assets will be registered on the government’s Personal Property Security Registry (PPSR).

  • Fees:

    The loan balance is subject to a 3.50% charge. E.g. $1,050 for a $30,000 loan. Early repayment and default fees also apply.

  • Mobile App:

    Prospa’s App offers 24/7 access to SME lending on Android and iOS.
    Streamline your cash flow management and see all your Prospa products in one place. And if you are new to Prospa, you can easily apply for new funding or open a Prospa Business Account with a few taps.

  • Awards:

    Prospa has won multiple awards, most recently being the Excellence Awardee, Best Non-Bank BDM, New Zealand Mortgage Awards, 2022.

  • Controversy:

    ASIC, the Australian Securities & Investment Commission, confirmed in 2018 that Prospa would remove unfair loan terms for small business borrowers and guarantors.

Pros & Cons


  • Funding granted within 24h
  • Simple to understand terms and conditions 
  • Unsecured business loans
  • Startup-friendly; accepts borrowers with a minimum of six months in business.


  • Security is required for loans over $150,000
  • No options for startups with less than six months trading
  • Early repayment fee
  • Daily or weekly repayments
  • Higher interest rates

Prospa small business financing at a glance

Prospa is best for borrowers who:

  • Need cash fast: Borrowers can apply for a Prospa business loan in just a few minutes and get a response the same day; funds may become available in a few hours.
  • Can afford frequent short-term payment plans: Prospa term loans require daily or weekly direct debit payments (depending on loan amount and term length). Repayment terms of 3 – 36 months, with an Early Repayment option to pay out your loan early and save on interest.
  • Don’t meet the eligibility requirements of other lenders: Prospa considers current cash flow and at least 6 months in business. The lender will ask you to sign a personal guarantee and maybe take a general lien out on your business assets as well.

Where Prospa stands out

Fast Business Loans

Prospa is a good option if you need fast access to short-term financing.

You can apply quickly online by providing basic information about yourself and your business, connecting your business bank account or uploading financial statements.

After you submit your application, you may be able to get access to the funds available in as little as 24 hours.

Flexible eligibility requirements

Prospa will consider borrowers who have been in business for six months or more, making it an excellent alternative for financing startups.

This lender is interested in your company’s existing and future cash flow, so you must connect your business bank account — or supply bank statements — as part of your application.

Other online and traditional lenders have stricter requirements than Prospa. The lender determines the interest rate for each customer based on a risk-based pricing algorithm that considers many variables. Such as the industry in which a company operates and the number of years the company has been in operation.

Because banks have particular qualification standards that many small businesses will not meet, they may have to pay higher fees and interest with an online lender than they would with a bank, sometimes because a bank would not have helped them in the first place.

Where Prospa falls short

Can be expensive

The business line of credit has annual percentage rates as high as 34.99%, making them more expensive than most conventional business lending options.

However, customers seem to have no problem with Prospa’s prices, considering them reasonable in light of the quick and easy application process and top-notch support it provides for small businesses, judging by the overwhelmingly positive reviews posted online.

Frequent repayments

The shorter repayment durations of business loans and lines of credit — up to 36 months and 12 months, respectively — result in higher payment amounts. Loans for businesses are repaid daily or weekly, whereas lines of credit are repaid weekly.

This high frequency of payments might be challenging for companies with inconsistent cash flow.

Early Repayment Fee's & Late Payment Fee's

Prospa late payment fees can quickly accumulate. They charge you a daily late payment fee and a daily late payment percentage of the amount owing.

Prospa will give you an early repayment figure that includes the remaining principal amount, accrued interest up to the date of the early payout, plus 1.5% of the remaining principal and any outstanding fees.

If you owe $10,000, your early repayment fee will be at least $150.

What kind of small business loans are available from Prospa?

Prospa makes it easy for small businesses to get loans by using a smart proprietary technology platform and a simple online application process. It has already given loans to thousands of small businesses in New Zealand.

Small business owners can get business loans, as well as a line of credit.

Small business loans can range from $5,000 to $500,000 (up from $300,000 in 2023), and lines of credit can range from $2,000 to $150,000. The business loan will give the borrower a lump sum that they can pay back over time, while the line of credit can be used and re-used over the course of the 24 month term, with the option to review.

Here’s an overview of the finance options offered:

Prospa Small Business Loans, unsecure

Quick access to $5K – $150K to cover unexpected expenses or one-off purchases.

Interest Rates: 9.9% – 26.5%

Origination Fee: 2.5%

Loan Term: Terms from 3 to 24 months

Response Time: Within 24h

Requirements for an Unsecured Business Loan

Lender Requirements:

  • Minimum six months of trading to apply,
  • Consent to a credit check,
  • NZ Citizen or Resident,
  • 6-12 months of bank statements

Prospa Plus Business Loans, secure

Larger loans of $100K – $500K to invest in business growth opportunities.

Interest Rates: 9.9% – 26.5%

Origination Fee: 2.5%

Loan Term: Term up to 36 months

Requirements for a Secured Loan

Lender Requirements:

  • Minimum three years of trading to apply,
  • financial statements,
  • P&L, and
  • Cash flow + asset security,
  • Consent to a credit check,
  • NZ Citizen or Resident
Prospa New Zealand offers faster business lending

Prospa Business Line of Credit

Ongoing access to up to $150K to cover gaps in working capital and access funds 24/7 with the Customer Online Portal.

Loan Term: 24 month term with option to renew

Response Time: Fast decision and funding possible in 24 hours

Interest Rates: Only pay interest on what you use – 19.99% – 34.99% APR

How to apply for a loan from Prospa

You can apply for a Prospa loan or line of credit online. First, you’ll need to create and log in to your Kabbage account. Then, you will connect your business checking account and any additional accounts to the Kabbage platform.

  • How much are you after?
  • How do you plan to use the funds?
  • Why do you need the funds?
  • Do you hold New Zealand citizenship or permanent residency?
  • Are you the director or owner of the business?
  • How much are your average monthly sales?
  • Search for your NZBN
  • How long have you been actively trading?
  • What industry is your business in?

Who is Prospa New Zealand?

Prospa New Zealand, often named “Prospa Lending” or “Prospa Funding”, launched in March 2019 with an office in Takapuna, Auckland offering Small Business Loans, Business Growth Loans and Business Lines of Credit funding.

Their online application process is streamlined, and their response and funding time are 24 hours or less. So most of the time, borrowers get the money the same day.

Prospa New Zealand, the small business loans specialist, is a wholly owned subsidiary of Prospa Group Ltd, PGL (ASX), founded in December 2011 by Beau Bertoli and Gregory Moshal, with the company headquartered in Sydney, Australia.

Both of them had been business owners, so they knew how hard it was to get bank funding.

The whole application process took about 4-6 weeks, and most of the time, they were turned down.

Prospa was started because it was clear that the loan options for small businesses weren’t good enough.

Beau and Gregory, the two co-founders, are still involved in the company as executive directors.

Prospa New Zealand Reviews and Recognition

Prospa is popular among business owners. This is their key point of difference and one of the reasons customers consistently rate the company so high.

Here are some reviews that have been collected from all over the web:

Prospa New Zealand, small business loans


Recognition & Awards

Including winner of the Finnies Awards for Excellence in Business Lending, 2021, and the number one spot in the Financial Times 1000 High Growth Companies in 2018 for Asia Pacific. 

Prospa has grown to a business of over 200 employees, hiring some of the best tech talent in Australia. 

It is regularly awarded for being an excellent company to work for, winning a ‘Great Place to Work Australia’ in 2021. 

And reaching the final of the Australian HR Awards for Best Workplace Diversity & Inclusion Program in 2020.

Customer Success Stories

Jeannine McCallum from wine sales distribution company The Invisible Agency has co-founded a new wine products business Cognoscente, with financing from Prospa.

Prospa alternatives


Bizcap offers business loans and lines of credit of up to $1,000,000 with repayment terms of up to 12 months. The minimum requirements are five months in business and a $12,000 turnover per month.
Bizcap is a good option for both startups and businesses with bad credit. Bizcap can approve and fund applications in as little as 3 hours.

Lending Crowd

Lending Crowd offers secured and unsecured loans to both personal and business borrowers of up to $200,000 with repayment terms of up to 2, 3 and 5 years. Although the amount you can borrow is less than what Prospa and Bizcap offer, Lending Crowd may be more affordable, with interest rates ranging from 7.95% to 21.6%. There are no fees for early repayment.

The minimum requirements are:

  • A good credit history
  • Over 18 months in business.
  • No less than $80,000 in annual revenue.
  • Full ownership of your business.


Prospa vs. Banks

In my experience, banks are hesitant to lend. They make the process difficult and want a personal guarantee, and typically security in private property and cash flow forecasts, including P & L and endless documentation.

In my opinion, banks let New Zealand businesses down, which doesn’t fit their narrow requirements for business funding. Naturally, this is very frustrating for any business owner.

In contrast, Prospa has filled a gap in the market. They have removed the barriers to quick and efficient access to capital, helping small Kiwi businesses grow the economy.


Compare business loans

The best business loan is generally the one with the lowest rates and most favourable terms. But other factors to consider are the business industry and the amount of time needed to secure funding can play a role in deciding which alternative is best for you.

LifeCovered recommends comparing small-business loans to find the right fit for your business.



What can a Prospa Small Business Loan be used for?

A Prospa Business Loan can be used for almost any business purpose, such as making improvements, buying inventory or new equipment, or just as general working capital. However, the loan can’t be used for personal reasons, which is made clear by the company.

How long does the approval decision take?

Usually, an approval decision is available within 24 hours and can be as quick as one hour. The quickest way is to make sure you apply during regular business hours and let Prospa use the advanced bank verification system to check your bank information online right away. It will take a little longer if you upload copies of your bank statements. 

When will I have the money?

As soon as your application is approved and funds are released, you may see the money in your bank account the same evening. As was our experience.

Author: Willi Olsen

Willi has worked in the insurance industry since 2004, accumulating a wealth of knowledge broadly across all aspects of insurance and financial protection, as well as as a business owner.

The New Zealand Certificate in Financial Services (NZCFS Level 5) in Life, Health, and Disability and the (NZCFS Level 5) Investments strand back up this practical experience.