Line of Credit For cash flow confidence

With the Prospa Business Line of Credit you pay:

• A Weekly Service Fee is charged weekly from the date of Settlement.
• Interest, but you only pay interest on the funds you have drawn down, and only until you repay those funds. Interest is charged at a fixed rate, calculated daily based on your drawn balance (i.e. the amount of your facility that has been drawn down and not repaid), and interest is charged weekly. The facility limit of your Line of Credit, and your interest rate, will be based on our assessment of your business.
• Every week we will attempt to Direct Debit your business account for the repayment amount owing that week, any unsuccessful attempt will attract a $25 Dishonour Fee, as well as a Late Payment Fee.

Your Line of Credit will be available for a period of 24 months. If you wish to extend your Line of Credit beyond this 24-month period, we will need to re-assess your business situation in case anything has changed.

On or before the end of the 24-month term you can choose from the following options:

• you can apply to renew your Line of Credit for a further 24-month term; or
• you can arrange to close your Line of Credit.

If you elect to renew your Line of Credit for a further 24-month term, we will need to complete a new assessment to check whether there have been any changes in your business. If you are approved, you can also review your facility limit based on your business’s current needs.

If you elect to close your Line of Credit at the end of the term, there are two possible options available to you to repay the outstanding balance:

• you can elect to repay the entire outstanding balance at the end of the term. This can be done in one lump sum payment via BPay.
• if you are eligible, you may elect to repay your outstanding balance on a 52-week repayment plan. This repayment plan will commence immediately after your Line of Credit term finishes. At this time, your access to the facility will be suspended and the outstanding balance of your Line of Credit will be divided into 52 instalments. These instalments will be direct debited from your bank account each week along with that week’s accrued interest and Weekly Service Fee until your outstanding balance is paid down to $0. Interest will accrue on the outstanding balance throughout the 52 weeks at the same rate as your Line of Credit. To be eligible for the 52-week repayment plan you must not be in arrears at the end of your Line of Credit term.

If you do not select an option on or before the date on which the term ends or you apply for and are not approved for a term extension, your Line of Credit will be closed and, if eligible, you will be placed on the 52-week repayment plan.

We will set up an automatic repayment schedule with set weekly repayments over 24 months. The weekly repayment will comprise interest and a portion of principal as well as any applicable fees, such as the Weekly Service Fee.

So that you don’t need to worry about missing a payment, your weekly repayments will be automatically debited from your nominated business bank account.

You can choose to simply pay the set weekly repayments, or you can make additional payments at any time to reduce your drawn balance, thus reducing the amount of interest you pay. It’s up to you.

There are two ways to access and use your Prospa Line of Credit:

• Via the Prospa online portal
• Via the Prospa mobile app

Once you have logged in, you will be able to view transactions, draw down funds to your nominated business bank account, directly pay invoices and suppliers and much more.

Visit our getting started page for more details.

A Line of Credit can be used for almost any business purpose – including activities that help you manage day-to-day cash flow. For example, it could be used for paying staff wages, covering unpaid invoices, buying urgent stock, managing seasonal fluctuations, paying suppliers and much more.

You can apply for a Prospa Line of Credit if you:

• are an Australian Citizen (or permanent resident)
• are over 18 years, own an Australian business (with a valid ABN/ACN)
• Minimum trading history applies