FundTap taps GoCardless to speed repayments in ANZ

FundTap has chosen GoCardless to automate repayment collections across Australia and New Zealand, supporting its expansion in Australia.

The GoCardless service is integrated with FundTap's Xero accounting software, allowing repayments to be scheduled and collected by Direct Debit before being reconciled in Xero. FundTap says the system has cut 2.5 to 3 days a week from manual payment administration and reconciliation.

The arrangement comes as small and medium-sized businesses in Australia and New Zealand face continued cash flow pressure from overdue invoices and late payments. GoCardless's latest Pursuing Payments report found that 15% of SMBs in both countries estimate they lose up to AUD $1,000 a month from late payments alone.

FundTap provides invoice finance to businesses seeking earlier access to cash tied up in unpaid invoices. Borrowers can draw funds against invoices and repay automatically from their bank accounts, removing the need for manual bank transfers and repeated proof-of-payment requests.

FundTap says the automation has helped it expand lending in the Australian market without adding headcount. It reported a 39% rise in total lending to Australian SMBs over the past year and a 212% increase over the past two years.

Admin savings

By linking repayment collection directly into its finance workflow, FundTap says it has removed double data entry even as invoice volumes have increased fourfold. Faster clearing of balances also allows it to recycle funds back into the market more quickly.

That matters for smaller businesses, which often wait weeks to be paid by customers while still needing to meet wages, supplier bills and tax obligations. Invoice finance has become one option for companies trying to bridge that gap without taking on a conventional loan.

FundTap says its platform is backed by integrations with Xero, MYOB, Reckon and QuickBooks. Businesses can choose invoices to fund and receive cash on the same business day, according to the company.

Growth market

Australia has become a larger market for FundTap as demand for short-term working capital has increased. The repayment process has been a key operational issue because growth in lending volumes can also increase the burden of manual collections and reconciliation.

Shane Laurence, Head of Growth at FundTap, said Australia had become a major growth market for the company.

"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," Laurence said.

GoCardless positioned the partnership against broader strains on smaller business finances, particularly the time and effort involved in collecting overdue payments. It said late-payment administration can consume a significant amount of management time for business owners.

Pat Phelan, Chief Revenue Officer at GoCardless, said the burden was likely to remain a pressing issue for SMBs dealing with narrow cash buffers and rising compliance demands.

"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," Phelan said.

"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," he said.

GoCardless says more than 100,000 businesses use its bank payment services, and it processes more than USD $130 billion in payments annually across more than 30 countries.