Prospa Business Finance: SMB's Loans & Flexible Credit Lines (2025)
Prospa provides small businesses with loans of up to $500,000 for short-term financing and offers a flexible business line of credit of up to $500,000, allowing multiple drawdowns to support cash flow management.
- By Willi Olsen
- Updated
Prospa’s digital-first fintech lending model establishes it as a trusted financial partner for entrepreneurs, sole traders, and small to medium-sized businesses (SMBs) in need of fast, flexible access to short-term working capital.
As the leading alternative lender to banks in New Zealand, Prospa specialises in business loans, cash flow financing, and tailored working capital solutions, enabling businesses to scale, invest, and thrive with ease.
When our business a loan to grow our business, we turned to Prospa. The process was smooth, and the funds were in our account within 48 hours.
Since launching in New Zealand in 2019, Prospa has become a trusted leader in business lending. They’ve funded over $500 million for Kiwi small businesses and sole traders, empowering them to thrive.
Key features of a Prospa loan
Prospa offers three types of loans:
- Small Business Loan,
- Prospa Business Loan Plus,
- Line of Credit.
Small Business Loan:
- $5,000 and $100,000 loans for covering working capital and everyday expenses.
Business Loan Plus:
- $100,000 to $500,000 loans to invest in business growth opportunities.
Business Line of Credit:
- up to $500,000
Personal Guarantee (Important):
- Prospa requires a personal guarantor for all business loans. This is typically someone actively involved in the business, such as a director or shareholder.
Asset Security:
- No upfront property security is required for loans up to $150,000. For loans exceeding $150,000, Prospa registers security over business assets on the government’s Personal Property Security Register (PPSR).
Fees:
- The loan balance is subject to a 3.50% charge, which is $1,050 for a $30,000 loan. Early repayment and default fees also apply.
Mobile App:
- The Prospa App gives you 24/7 access to SME lending on Android and iOS.
Easily manage your cash flow and view all your Prospa products in one place. New to Prospa? You can apply for funding or open a Prospa Business Account in just a few taps.
Simple, convenient, and designed to keep your business moving.
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 2018 that Prospa would remove unfair loan terms for small business borrowers and guarantors.
Pros & Cons
Pros
- 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.
Cons
- 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 is the ideal lender 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 great choice for quick access to short-term funding.
The online application process is simple. Just provide basic details about yourself and your business. You can connect your business bank account or upload financial statements.
Once submitted, you could receive your funds in as little as 24 hours. Fast, easy, and hassle-free.
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 simplifies small business lending with its smart proprietary technology and easy online application process. Thousands of small businesses in New Zealand have already benefited from Prospa’s loans.
Business owners can choose from two types of business loans or a line of credit to suit their needs.
- Small Business Loans:
Borrow $5,000 to $500,000 (increased from $300,000 in 2023). Get a lump sum with flexible repayment options. - Business Loans Plus:
Access funding from $150,000 to $500,000. Ideal for larger-scale needs, with a lump sum and structured repayment terms. - Lines of Credit:
Secure $2,000 to $500,000. Use and reuse funds as needed during a 24-month term, with the option to renew.
Flexible financing designed to support your business growth.
Prospa Small Business Loans, unsecure
Quick access to $5K – $500K 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 Business Line of Credit
Ongoing access to up to $500K 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:
Reviews
- Prospa New Zealand has 961 reviews and an average 5.0-star rating from New Zealand business owners and sole traders on Trustpilot, who have used the service and has been recognized with countless awards.
- Forty-six customers have rated Prospa 4.6 stars on Google My Business.
- Prospa Australia has 7,058 reviews and an average 4.9-star rating from Australian business owners on Trustpilot.
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
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
Banks are often reluctant to lend to small businesses. They complicate the process with stringent requirements such as personal guarantees, collateral from private property, cash flow forecasts, profit and loss statements, excessive paperwork, and time-consuming procedures.
This approach falls short for many New Zealand businesses. If you don’t meet their narrow criteria, you’re out of luck, which can be incredibly frustrating for business owners.
Prospa, on the other hand, has stepped in to fill this gap. They have removed the barriers, making access to capital quick and efficient. Prospa empowers small Kiwi businesses to grow and contribute to 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.
FAQ's
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.
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.