FundTap, a New Zealand provider of on-demand invoice financing for small and medium businesses (SMBs), has selected bank payment company GoCardless to automate its repayment collections across Australia and New Zealand.

According to GoCardless’ latest Pursuing Payments report, 15% of SMBs in both Australia and New Zealand estimate they lose up to $1,000 per month on late payments alone. FundTap empowers businesses to ‘unlock’ the cash from unpaid invoices within minutes, reducing the pressure caused by outstanding cashflow and enabling SMBs to focus on growing their business.

The partnership delivers a seamless experience by integrating GoCardless directly into FundTap’s Xero accounting software. When FundTap advances funds against an invoice, GoCardless automatically schedules and collects the repayments from the SMB’s bank account via Direct Debit, seamlessly reconciling the payment within Xero. This automation has been a primary driver for FundTap’s rapid expansion in the Australian market, achieving a 39% increase in total lending to the AU SMB market in the last year alone and a 212% increase over the past two years.

Backed by Xero, MYOB, Reckon and QuickBooks, FundTap solves the cash flow timing problem for SMBs by giving them immediate access to money from invoices that haven’t been paid yet. By using GoCardless to handle repayments via Direct Debit, FundTap secures a reliable, automated collection record for its own ledger, while simultaneously removing the administrative burden of manual bank transfers for the small businesses it serves.

Automating the path to growth

The integration allows FundTap to scale its operations without increasing headcount. Key benefits of the partnership include:

• Significant administrative savings: The GoCardless integration saves FundTap 2.5 to 3 days per week on manual payment admin and reconciliation, eliminating double data entry for the team even as invoice volumes have grown fourfold.
• Customer certainty: Borrowers benefit from a “set and forget” experience, knowing repayments are handled automatically, which reduces manual proof of payment requests.
• Faster funding via Xero: Automating the repayment cycle within Xero lets FundTap clear balances faster and get cash back out to businesses sooner.

Shane Laurence, Head of Growth at FundTap, said, “Australia has become a major growth market for FundTap. Our momentum there reflects a clear need for flexible working capital that moves at the same speed as business opportunities. By automating repayments with GoCardless, we’ve removed a massive friction point for both our team and our clients. Our customers get a ‘set and forget’ repayment process, giving them the certainty they need to take on new work and invest in growth without worrying about managing manual bank transfers or waiting weeks for invoices to be paid.”

Pat Phelan, Chief Revenue Officer at GoCardless, said, “We already know that SMBs are under immense financial pressure at present, and our data tells us that one of the biggest drivers of that stress is late payments and the time it takes to chase them. These cashflow concerns will only grow as we head into the new financial year, with payday super coming into effect.”

“Chasing unpaid invoices consumes an average of two full business weeks a year for SMBs, not to mention the significant stress pursuing payments adds to SMB decision makers. While GoCardless can help automate some of that admin workload, ensuring that you can access those funds at the time you need them is still a priority. We’re proud to support FundTap’s approach that makes it possible to access those funds when they’re needed most.”