We are not having much luck with the banks for the fit out of our cafe. A broker has mentioned a lender called Prospa - never heard of them so does anyone know much about them?

Hi Alan,
I haven't heard of them. They do loans secured by directors guarantees for amounts between $5k and $250k. They only allow terms up to one year and there is no mention of interest rates - that may indicate they are pretty steep.
Did your broker assess your financial position and your business plan?
Sometimes it comes down to how the proposal is presented

Hi Alan, they are a short term unsecured business lender. As opposed to a bank they do not charge interest rates but instead do factoring. For example you borrow 10k.. and how factoring works is they charge somewhere between say 1.1-1.4 x 10k, depending on risk etc. so you would repay 11-14k. Plus high fees and charges. There are no prizes for early repayment as with factoring the total repayable figure is a fixed amount advised at the point of loan offer. Loan terms are generally 3-6 months.

Now the important thing is that they lend against the strength of your business, so if your a brand new business or not trading then they will not assist.

If your an existing business thats not generating a profit.. probably cannot assist either.

It really depends on if your a new business or not, and your personal financial position however if you have an existing residential option there is a commercial option through a major lender that for the right application/applicant that will lend up to 100% of the property value and a portion of your business start up costs.

Happy to discuss, regards Ariel 0433132331

Prospa are one of a number of lenders that look at your last 12 months of more trading history and lend unsecured up to an amount they determine - it'd unsecured and around 1.2% per month so there might be cheaper options like a personal loan or lease on the equipment, I take it you have no real estate assets else there are Lo Doc lending options.

They are a funding solution
Please find a good quality broker so they can investigate your situation, assets and turnover etc

I am amazed how many people DO NOT avail a independent broker who will establish the correct solution and keep your credit rating ( Veda ) foot print as healthy as possible

Hi Alan, we may be able to help you. Get in touch.

Hi Alan,
I have a fantastic commercial broker that I work closely with. If you would like to give me a call you can contact me on 0401 925 507.

Regards,
Jade Murphy
RateOne Home Loans

Hi Alan,
I'm not sure if anyone has mentioned equipment finance options which can cover fit out also.

I hope you have had some luck by now, if not feel free to make contact.

Best wishes
Meiken Barnes

Expensive. Have your accountant work out the annualised interest rate... And then have a stiff drink. Check out Silver Chef for equipment and custom stainless, cheaper than prospa and likely better suited. Your equipment dealer should know about Silver Chef.