Prospa vs Scotpac vs Bizcap: Which is Best?
⚡ Quick Answer:
Choose Prospa if you need money in 24-48 hours and can afford 18-28% interest. Choose Scotpac for asset finance or invoice factoring at 14-20% rates. Choose Bizcap for balanced 1-3 day approval at 15-25% rates with flexible terms.
People Also Ask
What are Prospa's requirements?
6+ months trading, $75K+ annual revenue, Australian/NZ business, personal credit check required.
How does Scotpac work?
Scotpac provides asset-backed lending and invoice finance, using your equipment or invoices as security.
Is Bizcap legitimate?
Yes, Bizcap is a licensed credit provider operating since 2019 with over $500M in funded loans.
Which is cheapest?
Scotpac typically offers the lowest rates (14-20%) due to asset security requirements.
Complete Side-by-Side Comparison
| Feature | Prospa | Scotpac | Bizcap |
|---|---|---|---|
| Interest Rates | 18% - 28% | 14% - 20% | 15% - 25% |
| Loan Amount | $5K - $500K | $20K - $5M+ | $5K - $500K |
| Approval Time | 24-48 hours | 3-7 days | 1-3 days |
| Term Length | 3-24 months | 12-60 months | 3-24 months |
| Min Time in Business | 6 months | 12 months | 6 months |
| Min Annual Revenue | $75,000 | $200,000 | $100,000 |
| Security Required | ✗ Unsecured | ✓ Asset/Invoice | ✗ Usually Unsecured |
| Personal Guarantee | ✓ Required | ✓ Usually | ✓ Required |
| Early Repayment | Allowed (fees apply) | Flexible | Allowed (fees apply) |
| Best For | Emergency funding needs | Asset finance & invoices | Growth funding |
What is Prospa?
Quick Answer: Prospa is Australia's #1 online small business lender offering unsecured loans up to $500K with approval in 24-48 hours.
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.
Why choose Prospa?
- Speed: Fastest approval in the market (24-48 hours)
- Unsecured: No property or asset security required
- Flexible: Use funds for any business purpose
- Simple: Online application takes 10 minutes
Why avoid Prospa?
- Expensive: 18-28% interest rates (vs 8-12% for banks)
- Short terms: Maximum 24 months to repay
- Daily repayments: Can strain cash flow
- Personal guarantee: Directors personally liable
Prospa Costs Example:
Borrow $50,000 for 12 months at 24% = Total repayment $59,280 (Weekly payment $1,140)
What is Scotpac?
Quick Answer: Scotpac is a specialist asset finance and invoice factoring company offering secured business lending up to $5M+ with competitive rates.
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.
Why choose Scotpac?
- Lower rates: 14-20% due to asset security
- Larger amounts: Can lend $5M+ for right deals
- Specialization: Expert in equipment and invoice finance
- Established: Operating since 1988 with strong reputation
Why avoid Scotpac?
- Slower: 3-7 days for approval due to asset verification
- Security required: Must have assets or invoices to secure
- Complex: More documentation than unsecured lenders
- Industry focus: Not all businesses qualify
Scotpac Invoice Finance Example:
$100,000 in invoices = $80,000 advanced immediately at 1.5% per month factoring fee
What is Bizcap?
Quick Answer: Bizcap is a growing alternative lender offering unsecured business loans up to $500K with 1-3 day approval and moderate rates.
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
Bizcap Loan Example:
Borrow $75,000 for 18 months at 20% = Total repayment $86,250 (Monthly payment $4,792)
How to Choose Between Prospa, Scotpac, and Bizcap
Choose Prospa If:
- ✓ You need funding within 24-48 hours (emergency cash flow)
- ✓ You don't have assets to use as security
- ✓ Your business has been trading for only 6 months
- ✓ 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
- ✓ You need more than $500K in funding
- ✓ You can wait 3-7 days for approval
Choose Bizcap If:
- ✓ You want a balance between speed and cost
- ✓ You prefer working with a growing, flexible lender
- ✓ You need funding in 1-3 days (not emergency)
- ✓ You want unsecured funding at better rates than Prospa
What Do Real Customers Say?
Prospa Reviews
Based on 450+ reviews
"Fast approval but expensive"
"Great when desperate for cash"
"Daily repayments are tough"
Scotpac Reviews
Based on 200+ reviews
"Professional and thorough"
"Good rates for asset finance"
"Process takes time but worth it"
Bizcap Reviews
Based on 150+ reviews
"Better than Prospa rates"
"Good middle ground option"
"Helpful broker network"
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 offer 8-12% rates but need 2+ years trading and strong financials.
Best if: You can wait 2-4 weeks and have good credit
Peer-to-Peer Lenders
Harmoney and similar platforms offer 10-18% rates with moderate requirements.
Best if: You want lower rates than alternative lenders
Government Schemes
Regional Business Partners offer 6-10% rates for qualifying businesses.
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
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