A Line of Credit is an available balance of cash that you can draw upon at any time.
When you apply for a Line of Credit, you’ll be approved for a certain available balance. This is available cash that you can draw on when, or if, you need it. You only pay fees when you draw down on your available cash. It’s free have sitting there, ready for a rainy day. Any balance you repay is returned to your available balance. You can draw on it over and over again.

How does a Line of Credit compare?

Here’s how a Line of Credit compares to some of the other options available for small business owners.

Line of Credit

Propell Line of Credit

  • No annual fee

  • Cash, not credit

  • Pay interest only on what you use

  • Considers business activity, not personal credit history

  • Fast online application

  • No rewards program

Bank Loan

Traditional bank loan

  • Cash, not credit

  • Full amount is interest bearing

  • Small businesses can find it hard to get approved

  • Lots of paperwork

  • Ongoing fees

  • No rewards program

Bank Overdraft

Bank overdraft

  • Cash, not credit

  • You need to go into the bank to apply

  • No set repayment schedule

Credit Card

Credit Card

  • Rewards program

  • Fast application

  • Great if you can repay full monthly amount

  • Annual fee

  • Usually lower limit than other options

  • Credit, not cash

How does a Propell Line of Credit work?

Loan Duration

From the date of the drawdown, the business has six months to repay the draw down amount in full. They can pay the principal back earlier than this with no penalty fee charged and pay only the fees due at the time of repayment. For example: if a business were to draw down on the 1st January 2021, and then pay the full loan back 14th January 2021, then they would only pay the full principal plus the first month’s fee applicable. Otherwise, they pay each month on the anniversary of the drawdown plus the applicable fee for that month.

Fee Structure

Propell uses a two stage fee structure – a big fee and a small fee. The big fee is applied for the first two months of the agreed repayment arrangement, with the small fee applied to the last four payments.

Big Fee
The big fee is applied from 3% to a maximum of 9.75%.

Small Fee
The small fee is 1% applied to all loans for the last four payments due.

Fee Application Example
For a $1,000 draw down paid as per schedule, the total the customer will pay back is $1,235. That is, six equal payments on the principal plus applicable fee each month. If the Borrower were to pay the loan in full within the first month of the draw down date, the total amount charged is $1,097.50.

Principal Fee Total
$166.67 $97.50 $264.17
$166.67 $97.50 $264.17
$166.67 $10 $176.67
$166.67 $10 $176.67
$166.67 $10 $176.67
$166.67 $10 $176.67
$1,000 $235 $1,235
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