The biggest difference is how you repay. Bizcap is a business loan: repayments start straight away and come out daily or weekly for the whole term, whenever your customers pay. FundTap is invoice finance, not a loan: you fund the invoices you choose, and there is one repayment, on the date your customer is due to pay. FundTap has no setup or ongoing fees, and you only pay when you use it. Bizcap suits larger amounts, or funding that is not tied to invoices.
Last reviewed 29 September 2026
Bizcap provides fast business loans and lines of credit for AU and NZ businesses that need a lump sum quickly. FundTap is on-demand invoice finance for Australian and New Zealand small businesses. Both are ways to cover a short-term cash flow gap, but they are different products: a business loan and invoice finance. They repay and cost differently enough that comparing the headline numbers will mislead you. Here is how repayment, cost and early repayment work for each.
At a glance
| Feature | FundTap | Bizcap |
|---|---|---|
| Repayment | One repayment, by direct debit, on the date your customer is due to pay the invoice | Repayments start immediately and come out daily or weekly for the loan term, regardless of when your customers pay |
| What it is | On-demand invoice finance. You fund the unpaid invoices you choose | Business loan or line of credit. You borrow a lump sum |
| Commitment | None. No setup fees and no ongoing fees. You only pay when you fund an invoice | Once the loan is drawn, you are committed to the repayment schedule for the term |
| Cost structure | From 4% per invoice, quoted in full before you accept. No setup fees, no monthly fees, no exit fees | Priced on a factor rate, plus an establishment fee agreed upfront and possibly other charges. The rate varies by creditworthiness, loan duration and use of funds, and Bizcap does not publish it. Once every charge is included, the overall cost can be high |
| Does paying early cost less? | Yes. The fee is recalculated for the actual number of days, so it comes down if your customer pays early. There is no early-repayment penalty | Bizcap says it charges no early-settlement fee and offers a discount for settling early. The size of the discount depends on your individual agreement and may not reflect the full unused term |
| Amounts | Up to $300,000 to start, and the limit grows as your invoicing grows. Invoices from $300 | Loans $5,000 to $7.5M and lines of credit to $750,000 in Australia. In New Zealand, loans $5,000 to $4M and a line of credit $5,000 to $500,000 |
| Entry criteria | Connect Xero, MYOB, QuickBooks or Reckon and pick an eligible invoice. Three months of trading activity and more than $5,000 a month in revenue, subject to standard credit assessment of you and your customer | Published NZ floors: 4 months trading and $12,000 monthly revenue for a business loan, 9 months trading and $20,000 monthly revenue for the line of credit, 5 months trading for a secured loan |
| Security | No property security. A general security agreement over the business, and for limits over $30,000 a personal guarantee backed by property the guarantor owns | Unsecured at smaller amounts. Larger loans, secured loans and bridging finance require property security or a caveat |
| Term | No term. Each invoice is funded on its own | Typically 3 to 12 months |
| Effect on your balance sheet | Repaid automatically on the invoice due date, from money you have already earned and invoiced | Adds a loan liability |
| Speed | Approval usually within a day. Once approved, funded within 2 hours | An answer in 3 hours and funds the same day, on their published claim |
| Markets | Australia and New Zealand | Australia, New Zealand and the United States |
Bizcap amounts, entry criteria, the establishment fee and the early-settlement discount are taken from their own published pages, including the Bizcap FAQs, read on 18 and 29 September 2026. Points on repayment frequency, commitment and overall cost describe how Bizcap loans are generally structured, as FundTap understands them. Bizcap does not publish rates, so no rate is quoted here on their behalf. Individual agreements vary, so confirm current terms with Bizcap directly.
One repayment, or repayments from day one
FundTap is repaid once, on the date your customer is due to pay the invoice. Bizcap repayments start straight away and continue daily or weekly until the loan is paid off, whatever your customers are doing.
That difference often matters more than the headline cost. With a fixed schedule, money leaves your account every few days from the start, including in the weeks when customers pay late. Each repayment reduces the cash you have to run the business, so a loan taken out to cover a cash flow gap can keep the gap open. With FundTap nothing comes out until the invoice is due, and the one repayment lines up with the money you are already expecting to receive.
It also changes what you are signing up to. Once a Bizcap loan is drawn, you are committed to its repayment schedule for the term. FundTap has no setup or ongoing fees and no term, so you only pay when you choose to fund an invoice.
What a factor rate actually costs you
A factor rate is a fixed multiple of what you borrow, and Bizcap charges an establishment fee on top. Once every charge is included, a short-term loan can cost a lot more than the headline suggests, so the only reliable comparison is the total repayable in dollars.
This is the part most business owners get wrong, and it is worth ten minutes before you sign anything. A factor rate is not an interest rate, and the two cannot be compared side by side.
An interest rate is charged on what you still owe. A factor rate is a multiple applied once, to what you borrowed. If you are quoted a factor rate of 1.3 on $100,000, you repay $130,000, before any establishment fee or other charges. The cost is set on day one, whether you hold the money for three months or six.
Three consequences follow:
- You never have the full amount for the full term. Daily or weekly repayments start immediately, so by the halfway point you have already handed back roughly half. Your average balance over the term is closer to half what you borrowed, but the fee was calculated on all of it. The true cost of the money you actually had use of is therefore around double what the headline implies.
- Repaying early may save less than you expect. Bizcap says it does not charge an early-settlement fee and offers a discount for settling early. But with a factor rate the cost is set at the start, so how much you save depends on your individual agreement and may not reflect the full unused term. Ask for the payout figure in writing before you rely on it.
- A monthly rate quoted on the original amount is not a monthly rate. If a cost is described as a percentage per month but calculated on the amount you originally borrowed rather than on what is left, it is not comparable to a bank rate, an overdraft rate or an invoice finance fee. Ask for the total repayable in dollars instead.
Work it out on your own quote
You do not need the rate. You need two numbers any lender will give you: the amount that lands in your account, and the total of every repayment and fee. Then:
- Total cost equals total repayments plus any fees, minus the amount advanced. That is the dollar figure that matters.
- Cost as a share of what you borrowed equals total cost divided by the amount advanced.
- Roughly double that to get closer to the real cost of the money you had use of, because you are repaying from day one.
- Then annualise. If the term is three months, multiply by four. A cost that reads as manageable over twelve weeks often does not over twelve months, and short-term facilities are frequently rolled.
None of that is an argument against short-term lending. There are situations where paying for speed is the right call. It is an argument for knowing the number before you commit, which is the same reason FundTap shows you the exact fee on your invoice before you accept it.
Six questions to ask any short-term lender
- What is the total amount repayable, in dollars? Not the rate. The total.
- What fees are there on top? Ask about establishment fees, and any other charges that are not in the repayment figure.
- When does the first repayment come out, and how often after that? Daily or weekly repayments hit cash flow very differently from a single repayment.
- If I pay it out early, how much does the cost come down? Get the payout figure in writing, not just the promise of a discount.
- What security is involved? Ask specifically about personal guarantees, caveats over property, and general security agreements, and at what loan size each one starts to apply.
- What happens if a repayment is missed? Ask what the fees are, and at what point collections begins.
Ask FundTap the same six. The answers are: the exact dollar fee is shown before you accept; there are no setup or ongoing fees; there is one direct debit on the invoice due date; the fee is recalculated for the actual number of days, so it comes down if the invoice is paid early; FundTap does not take property security, though limits over $30,000 need a personal guarantee backed by property; and if something goes wrong we call you.
If you are weighing up a loan against invoice finance more generally, invoice finance vs a business loan covers the wider trade-offs.
When FundTap is likely the better fit
- You have a short-term or occasional cash flow gap, and you want to fund selected invoices rather than take out a loan.
- You want one repayment on the date your customer pays, not regular repayments reducing your cash flow.
- You only want to pay when you use it: no setup fees, no ongoing fees, no term.
- You want the cost to come down if your customer pays early.
- You have unpaid invoices out to business, government or council customers, and the problem is timing rather than a shortfall.
- You do not want a new loan liability on the balance sheet.
- You trade in New Zealand, Australia, or both.
When Bizcap is likely the better fit
- You need a larger amount than your invoices can support.
- You need funding that is not connected to invoices, for example to buy stock, plant or a business.
- You do not invoice other organisations, so there is nothing to fund against.
- You are comfortable with regular daily or weekly repayments for a set term, and you have property security available if you need a larger loan.
Switching to FundTap takes four steps
- Connect your accounting software (Xero, MYOB, QuickBooks or Reckon). Takes about 10 minutes.
- Pick an unpaid invoice you would like to fund.
- See the exact fee for that invoice before you commit to anything.
- Receive funds, typically within 2 hours of approval.
More detail on each step is on how FundTap works.
Common questions
What is the difference between FundTap and Bizcap?
The main difference is repayment. Bizcap lends you a lump sum, and repayments start straight away and continue daily or weekly for the loan term, whenever your customers pay. FundTap advances money against the invoices you choose, and there is one repayment, by direct debit, on the date your customer is due to pay. FundTap has no setup or ongoing fees and no term. Bizcap suits larger amounts, or funding that is not tied to invoices.
How do repayments work with Bizcap and FundTap?
With Bizcap, repayments start immediately after the loan is drawn and come out daily or weekly until it is paid off, regardless of when your customers pay. With FundTap there is a single repayment, by direct debit, on the invoice due date, so nothing leaves your account in the meantime.
Does Bizcap charge an establishment fee?
Yes. Bizcap says it charges an establishment fee on its loans, agreed upfront, in addition to the factor rate. Other charges may also apply depending on the agreement, so ask for the total repayable in dollars, including every fee. FundTap has no setup, establishment or ongoing fees.
Is a factor rate the same as an interest rate?
No, and they cannot be compared directly. An interest rate is charged on the balance you still owe, so it falls as you repay. A factor rate is a multiple applied once to the amount you borrowed, so the cost is set from the start. A factor rate of 1.3 on $100,000 means you repay $130,000, before any establishment fee. To compare any two offers fairly, ask both for the total repayable in dollars.
Does it cost less if I repay early?
With FundTap, yes. The fee is recalculated for the actual number of days the funding runs, so it comes down if your customer pays early, and there is no early-repayment penalty. If the repayment date moves out, the extra days are added. Bizcap says it offers a discount for settling early and charges no early-settlement fee, but the discount depends on your individual agreement and may not reflect the full unused term.
Is Bizcap more expensive than FundTap?
It depends on what you need. For a short-term or occasional gap that invoices can cover, FundTap is usually the simpler cost: one fee per invoice, shown in dollars before you accept, with no setup or ongoing fees. A Bizcap loan combines a factor rate with an establishment fee and possibly other charges, and the overall cost can be high once everything is included. For a larger amount, or funding not connected to invoices, a loan may be the only option. Compare the total repayable in dollars either way.
Do I need property security?
FundTap does not take property security. It takes a general security agreement over the business, and for funding limits over $30,000 a personal guarantee, which needs to be backed by property the guarantor owns. Bizcap's smaller loans are unsecured, but their larger loans, secured loans and bridging finance require property security or a caveat. Whichever provider you use, ask exactly what security applies at the amount you need.
How quickly can I get funded?
Once your accounting software is connected and your account is approved, eligible invoices are typically funded within 2 hours of approval.
What if my cash flow needs are short-term or occasional?
That is exactly when FundTap works best. There are no setup or ongoing fees, no minimum draw volume, and no contract. Fund one invoice, a few, or none. There is no penalty for not using the product.
Bizcap amounts, entry criteria, the establishment fee and the early-settlement discount are taken from Bizcap's own published pages, read on 18 and 29 September 2026. Other points describe how Bizcap loans are generally structured, as FundTap understands them, and individual agreements vary. Bizcap does not publish rates, so none is stated here on their behalf. This page is for general information only and is not financial advice. Outcomes depend on circumstances, invoice profile, and approval. Confirm current terms directly with each provider.
