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Prospa vs Scotpac vs Bizcap: Which is Best?
⚡ Quick Answer:
Choose Prospa for fast unsecured-loan approvals. Choose Scotpac for asset finance or invoice factoring (where the asset/invoice is the security). Choose Bizcap for a middle ground on speed and flexibility. Specific rates and approval timelines vary by applicant — confirm current pricing on each lender's site.
People Also Ask
What are Prospa's requirements?
Confirm current eligibility (trading history, revenue, credit profile) directly on Prospa's NZ site. We do not maintain a copy.
How does ScotPac work?
ScotPac provides asset-backed lending and invoice finance, using your equipment or invoices as security.
Is Bizcap a licensed lender?
Yes — Bizcap operates as a licensed credit provider in NZ. Confirm current licence + entity details on Bizcap's NZ site.
Which is cheapest?
Asset-secured lending (ScotPac's model) is typically priced lower than unsecured because the asset reduces lender risk. Confirm current rates with each lender — we do not maintain a live rate feed.
Complete Side-by-Side Comparison
| Feature | Prospa | Scotpac | Bizcap |
|---|---|---|---|
| Interest rates | See published rates | See published rates | See published rates |
| Loan amount | Confirm with Prospa | Confirm with ScotPac | Confirm with Bizcap |
| Approval time | Marketed around fast unsecured decisioning | Slower — asset / invoice verification step | Comparable to Prospa |
| Term length | Short-term unsecured | Asset-tied; longer terms typical | Short-to-medium-term |
| Min time in business | Confirm with Prospa | Confirm with ScotPac | Confirm with Bizcap |
| Min annual revenue | Confirm with Prospa | Confirm with ScotPac | Confirm with Bizcap |
| Security model | Unsecured-led | Asset / invoice-secured | Mostly unsecured |
| Personal guarantee | Required | Usually required | Required |
| Early repayment | Confirm structure with Prospa | Confirm structure with ScotPac | Confirm structure with Bizcap |
| Best fit | Speed of unsecured decisioning | Asset finance + invoice finance | Secured + unsecured flex |
What is Prospa?
Quick answer: Prospa is one of the most established alternative business lenders operating in NZ, focused on fast unsecured decisioning. Confirm current loan caps + approval timing on Prospa's NZ site.
How does Prospa work?
Prospa uses automated credit assessment technology to approve business loans quickly without requiring property security. They analyze your business cash flow, banking data, and credit history to make lending decisions in hours rather than weeks.
When Prospa is the right fit
- Speed: One of the fastest unsecured decisioning channels in NZ
- Unsecured: No property or asset security required
- Flexible: Use funds for any business purpose
- Simple: Streamlined online application
Trade-offs
- Pricing: Alternative-lender rates carry a meaningful premium over bank-secured pricing — confirm Prospa's current rate quote against bank options
- Term length: Short-term unsecured product set
- Repayment frequency: Repayment cadence is set by the lender — confirm cash-flow fit before signing
- Personal guarantee: Directors personally liable
Modelling Prospa cost
Use the SMELoans business loan calculator with Prospa's quoted rate to model total repayment.
What is Scotpac?
Quick answer: ScotPac is a specialist asset finance and invoice factoring company offering secured business lending. Confirm current loan caps and pricing on ScotPac's NZ site.
How does Scotpac work?
Scotpac specializes in asset-backed lending, using your equipment, vehicles, or invoices as security. They offer equipment finance, invoice factoring, and trade finance solutions. Their rates are lower than other alternative lenders because loans are secured.
When ScotPac is the right fit
- Asset-secured pricing: Asset / invoice security typically unlocks better pricing than unsecured
- Larger transactions: Capacity for larger asset-secured deals — confirm caps with ScotPac
- Specialisation: Specialist in equipment finance and invoice factoring
- Established: Long operating history
Trade-offs
- Slower than unsecured channels: Asset / invoice verification adds time to the decision
- Security required: You need pledgeable assets or qualifying invoices
- Complex: More documentation than unsecured lenders
- Eligibility: Not every business model fits the asset / debtor-finance lens
Modelling ScotPac invoice finance
Use the SMELoans invoice finance calculator with ScotPac's quoted advance rate and discount fee.
What is Bizcap?
Quick answer: Bizcap is an alternative business lender offering both secured and unsecured options across the NZ SME segment. Confirm current loan caps + pricing on Bizcap's NZ site.
How does Bizcap work?
Bizcap positions itself between ultra-fast expensive lenders like Prospa and slower traditional banks. They use technology-driven assessment but take slightly more time to offer better rates. Most loans are unsecured with flexible repayment terms.
Why choose Bizcap?
- Balanced approach: Better rates than Prospa, faster than banks
- Flexibility: Various loan products and terms
- Growing network: Expanding broker relationships
- Customer service: More personalized than pure online lenders
Why avoid Bizcap?
- Not the fastest: Slower than Prospa if you need urgent funds
- Not the cheapest: More expensive than secured lenders
- Newer player: Less established than competitors
- Limited track record: Operating since 2019
Modelling Bizcap cost
Use the SMELoans business loan calculator with Bizcap's quoted rate to model total repayment.
How to Choose Between Prospa, Scotpac, and Bizcap
Choose Prospa If:
- ✓ You need funding within Prospa's marketed turnaround (emergency cash flow)
- ✓ You don't have assets to use as security
- ✓ Your business has limited trading history but solid recent cash flow
- ✓ You can handle higher interest rates for speed
Choose Scotpac If:
- ✓ You have equipment, vehicles, or invoices to secure
- ✓ You want the lowest possible alternative lender rates
- ✓ Your need is larger than the typical alternative-lender unsecured cap
- ✓ You can absorb the asset / invoice verification step in the timeline
Choose Bizcap If:
- ✓ You want a balance between speed and cost
- ✓ You prefer working with a growing, flexible lender
- ✓ You can absorb a slightly slower decision in exchange for product flexibility
- ✓ You want unsecured funding at better rates than Prospa
Should You Consider Other Options?
While Prospa, Scotpac, and Bizcap are popular choices, they may not be right for everyone. Consider these alternatives:
Traditional banks
ANZ, ASB, BNZ, Westpac, Kiwibank typically beat alternative lenders on rate, in exchange for tighter eligibility and a longer underwriting cycle. Confirm current rates on each bank's site.
Best if: You can absorb a longer decision and meet bank credit policy
Peer-to-peer lenders
Harmoney and similar NZ platforms sit between bank and alternative-lender pricing for the right credit profile. Confirm current rates with each platform.
Best if: You want a middle-ground rate vs. alternative lenders
Government Schemes
Regional Business Partner Network co-funding can subsidise eligible spend (R&D, capability building) — see business.govt.nz for current scheme terms.
Best if: You're in growth sectors or regions
Invoice Finance Specialists
Timelio, Debtor Finance NZ offer competitive invoice factoring.
Best if: You have quality invoices to factor
Our Final Recommendation
🏆 Best Overall: It Depends on Your Situation
There's no single "best" lender - it entirely depends on your specific needs:
- Speed Critical? → Prospa (accept the higher rates for 24hr funding)
- Have Assets? → Scotpac (lowest alternative lender rates)
- Want Balance? → Bizcap (middle ground on speed and rates)
- Can Wait? → Try banks first (8-12% vs 15-28%)
💡 Pro Tip: Compare Multiple Options
Don't just apply to one lender. Getting quotes from multiple lenders can save you thousands in interest and fees. Use a broker or comparison service to access multiple options simultaneously.
Compare All Your Business Loan Options
Not just Prospa, Scotpac, and Bizcap - access our partner lender panel in one application