FundTap vs Invoice Factoring NZ: when each is the better fit
TL;DR: Invoice Factoring NZ is a long-running NZ invoice factoring provider. Factoring sells the debt to the financier and notifies your customer. FundTap is invoice finance: confidential, selective, no debtor notification. Both fund the same underlying problem (unpaid invoices), but FundTap preserves your customer relationship and lets you fund individual invoices rather than your whole ledger.
Invoice factoring providers in New Zealand typically take over the sales ledger, collect from your customers directly, and charge per invoice plus a service fee. FundTap is on-demand invoice finance for Australian and New Zealand small businesses. Here is a straightforward comparison so you can decide what suits your situation.
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At a glance
| Feature | FundTap | Invoice Factoring NZ |
|---|---|---|
| What it is | On-demand invoice finance | Invoice factoring |
| Cost | Per-invoice fee from 4% (no setup fees, no monthly subscription fees, no early-repayment fees) | Discount fee plus service fee, often charged on the whole ledger |
| Repayment | Automatic when your customer pays the original invoice | Factor collects directly from your customers |
| Entry criteria | Connect Xero, MYOB, QuickBooks or Reckon and pick a single eligible invoice , no fixed trading-history or revenue threshold for new accounts (subject to standard credit assessment of you and the debtor) | Typically requires committing the whole sales ledger and notifying customers |
| Effect on balance sheet | No new debt added to the balance sheet , you are accessing money you have already earned | Depends on whether the arrangement is recourse or non-recourse |
| Speed | Typically funded same business day, once your accounting software is connected | Onboarding takes longer due to ledger assignment and customer notification |
| Markets | Australia and New Zealand | New Zealand |
| Ongoing commitment | No monthly subscription fees, no minimum draw volume | Service fees typically apply |
When FundTap is likely the better fit
- You want to choose individual invoices to fund, not commit your whole ledger.
- You want to keep collecting from your customers yourself, with no notification to them.
- Your customer relationships are important and you do not want a third party in the middle.
- You want a per-invoice fee with no service fee or whole-ledger commitment.
When Invoice Factoring NZ is likely the better fit
- You are willing to commit your whole sales ledger to one provider.
- You are comfortable with your customers being notified and paying the factor directly.
- You want the factor to take on debtor management and collection work.
Switching to FundTap takes four steps
- Connect your accounting software (Xero, MYOB, QuickBooks or Reckon). Takes about five 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 the same business day.
Common questions
Does my business need to invoice other businesses to use FundTap?
FundTap funds invoices owed by other organisations, including businesses, government departments, and councils. The most common use is invoicing other businesses, but business-to-government and similar arrangements work too. Cash-only or business-to-consumer arrangements do not fit the product because there is no invoice to fund against.
How is FundTap different from a business loan?
FundTap is not a loan. There is no new debt added to your balance sheet, no fixed repayment schedule, and no lock-in. You are accessing money you have already earned through an unpaid invoice. The invoice is repaid automatically when your customer pays, so you are never paying for funding you are not using.
What if my cashflow needs are short-term or sporadic?
That is exactly when FundTap works best. There are no monthly subscription fees, no minimum draw volume, and no contract. Fund one invoice, a few, or none. There is no penalty for not using the product.
How quickly can I get funded?
Once your accounting software is connected and your account is verified, eligible invoices are typically funded the same business day. Cut-off times and processing windows apply.
Competitor information is based on publicly available data at time of writing and may change. 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.