There are some ways to correct the lending model and improve...

There are some ways to correct the lending model and improve returns while keeping the interest rate lower

Say it was a $20,000 loan less the below charges/fees
Loan Establishment Fee 20% = $4000
Service fee $50 month (no interest charged)
Interest rate 9%p.a for 12 months, then recaps at 18% in second year
**Can pay out early no penalty (enticement to payout early) + (Prospa make their fees anyway) meaning (less reliance on interest returns)
** If you payout the first 12 months P and I on time, you can reborrow the same amount (50% of gross loan) again (with an attached rollover fee ** Another bonus for Prospa) makes the loan book a continual revolving one.

This provides the borrower with higher fees yes, however the interest rate is acceptable.

Lastly, what you also provide each small business is a free business advertising section within a portal of some kind, where all businesses using the prospa product can sell their services, products etc to other prospa business customers, building a longer term sustainable catalogue of client.

Anyway, what would I know.