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An ASIC spokesman confirmed it had been examining unfair contract terms in the industry and this review was "ongoing."

The delay to the float comes after conditions in small business loan contracts from banks were scrutinised by the royal commission into financial misconduct in its most recent round of hearings.

ASIC senior executive Michael Saadat was last week asked by Commissioner Kenneth Hayne why ASIC did not enforce unfair contract laws more forcefully, rather than working with the industry.

Prospa is one of a number of online lenders targeting small businesses, and it is set to have a market capitalisation of about $576 million upon listing, of which $146 million is to be raised in the initial public offering, at a price of $3.64 per share.

Key investors include London-based venture capital firm Entree Capital, which has a 34 per cent stake in the business, and the co-founders and joint chief executives Greg Moshal and Beau Bertoli.

On completion of the raising, Mr Moshal is set to hold a 15.5 per cent stake in the company worth $89.5 million, while Mr Bertoli will hold a 6.1 per cent stake worth $34.9 milliion.

Its prospectus says it provides loans of up to $250,000, with no security required for loans up to $100,000. Its interest rates are set according to "risk-based pricing," and the average annual interest rate across its portfolio was 41.3 per cent.

A note from Field Research director Stewart Oldfield this week said the Prospa prospectus said it had reviewed loan contracts, but added: "Call us pedantic but Prospa did not go on to say that those reviews found that its contracts complied with the unfair contract regulations at those times."

One fund manager said it was a bad look for the company to delay a float in response to ASIC queries, but it was also possible the Prospa was being extra cautious in the environment of heightened scrutiny from regulators.

ASIC has also been putting fintech "buy now, pay later" businesses such as Afterpay under the microscope in recent months. Afterpay share have surged in the past year but dropped 4.5 per cent, to $8.15, on Wednesdsay.