Refinance Guide
How to Refinance a Prospa Loan
Prospa is one of Australia's leading business lenders — we arrange Prospa facilities when clients need fast capital with minimal paperwork. Their speed and accessibility make them ideal for urgent funding needs. However, once your business stabilises, you may benefit from refinancing to traditional bank finance at lower rates.
About Prospa
Prospa offers unsecured business loans up to $500,000 with terms from 3 months to 3 years. We regularly arrange Prospa facilities for clients who need funds quickly — often within 24 hours. This speed is invaluable when timing matters. As your business matures, though, transitioning to bank finance can significantly reduce your ongoing interest costs.
Typical Rates
15% to 35% p.a. (factor rates typically 1.15 to 1.45)
Typical Terms
3 months to 3 years, daily or weekly repayments
Things to Consider with Prospa
- High effective interest rates compared to bank finance
- Daily or weekly repayments strain cash flow
- Factor rate pricing makes true cost unclear
- Limited ability to pay out early without penalty
- Debt serviceability impacts future borrowing capacity
Your Refinance Options
Bank Term Loan
If your business has stabilised with consistent cash flow and clean financials, a traditional bank term loan can reduce your rate to 7-12% p.a. with monthly repayments.
Secured Business Loan
Using property or other assets as security can dramatically reduce rates. Secured commercial loans typically range from 6-10% p.a.
Asset Finance Refinance
If you used Prospa to purchase equipment, refinancing to a dedicated asset finance facility can reduce costs and free up working capital.
Invoice Finance
If cash flow timing is the core issue, invoice finance may be more appropriate than a term loan, with costs typically 2-4% per invoice.
Considering Your Prospa Options?
Whether you need additional capital or want to explore refinancing, we can help. Get a free assessment of your options.
How to Refinance Prospa
Request a payout figure from Prospa — this shows exactly what you owe including any early exit fees
Gather your financials — last 2 years of tax returns, 6 months of bank statements, current balance sheet
We assess your position and identify suitable refinance lenders
Submit applications to appropriate lenders (bank, non-bank, or secured)
Upon approval, the new lender pays out Prospa directly
You transition to lower-cost monthly repayments
Frequently Asked Questions
Other Lender Refinance Guides
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