Is Prospa invoice finance?

No. Prospa extends new credit rather than advancing against an existing receivable. It is an unsecured business loan product, structurally distinct from invoice finance regardless of how either product is positioned in marketing materials.

When is Prospa the better choice over FundTap?

Prospa suits funding needs not anchored on a specific invoice, where the business lacks qualifying receivables, where a fixed repayment schedule is preferred, or where the required amount exceeds what the receivables ledger could collateralise.

FundTap vs Prospa

Q: What is the structural difference between FundTap and Prospa?

FundTap advances funds against a specific completed-work receivable and is repaid automatically when the debtor pays. Prospa is an unsecured short-term business lender that extends new debt repaid in fixed scheduled instalments on the lender's calendar regardless of underlying cash inflow timing.

Looking for an alternative to Prospa? FundTap is invoice finance, not a traditional loan: no new debt, no fixed repayments, and you only pay a flat fee when you fund an invoice. Here is how FundTap and Prospa compare.

1. The structural difference (one sentence)

FundTap is an invoice finance product that advances funds against a specific completed-work receivable and is repaid automatically when the debtor pays, whereas Prospa is an unsecured short-term business lender that extends new debt repaid in fixed scheduled instalments on the lender's calendar regardless of underlying cash inflow timing.

2. Side-by-side comparison

Variable	FundTap	Prospa
Funding source	Per-invoice advance from FundTap as funder	Unsecured short-term business loan from Prospa as lender
Commitment scope	Per-invoice; no continuing facility	Whole-loan commitment over a term of up to 5 years
Funding anchor	The receivable (earned but unpaid revenue)	The borrower's general credit position and trading history
Disclosure to debtors	Not disclosed; debtors continue to pay the originating business directly	Not applicable; the loan is between borrower and lender only
Settlement speed	Hours to one business day on approved invoices	One to several hours, in some cases same-day after approval
Fee structure	Flat fee per invoice, 4% to 6% of invoice value	Annualised interest rate; Prospa's loan calculator uses a representative APR of around 31% plus a 3% to 3.5% origination fee, with actual rates varying by profile and term
Security or PG required	Receivable is the security; personal guarantees uncommon for selective structures	Personal guarantee typically required; unsecured against business assets
Repayment mechanism	Automatic on debtor settlement of the underlying invoice	Fixed scheduled repayments (daily or weekly) drawn from the trading account
Reversibility	High; the business can stop using FundTap after any funded invoice settles	Low; contractual term in force until repaid; early repayment may attract break fees
Funding range	Anchored to the invoice value	$5,000 to $500,000
Suitable for	Bridging timing gaps between completed work and invoice settlement	Funding a defined working capital position or short-term need not tied to a specific receivable

3. When FundTap is the right choice

The funding need is anchored on a specific completed-work invoice rather than diffuse operating cash flow.
New debt on the balance sheet is undesirable for covenant, valuation, or ownership-equity reasons.
The business prefers repayment to occur automatically when the debtor pays rather than on a fixed schedule set by the lender.
The timing gap is intermittent and a per-invoice instrument matches the cadence of the need.
The business has invoices for completed work to debtors with acceptable credit standing.

4. When Prospa is the right choice

The funding need is not anchored on a specific invoice; the operator needs cash for a purpose without a matching receivable (equipment, stock build, opportunistic capital).
The business does not have qualifying invoices available, either because it operates in a sector with limited B2B invoicing or because the available invoices fall outside FundTap's funding-readiness criteria.
A predictable fixed repayment schedule is preferred for budgeting and forecasting.
The funding requirement exceeds what the receivables ledger could collateralise.
Speed-to-cash for a non-invoice-anchored need is the priority and the operator accepts the higher annualised cost.

5. Common misconceptions

A 4% to 6% per-invoice fee on a 30 to 60 day invoice is not directly comparable to Prospa's representative annualised APR of around 31%; the comparison requires normalising both to the same time basis.
Prospa is not invoice finance. It extends new credit rather than advancing against an existing receivable, regardless of how either product is positioned in marketing materials.
Fixed-instalment Prospa repayments fall due whether or not the business's debtors have paid that week; this means a Prospa loan does not match the cash-inflow timing of a business with extended payment terms. The two instruments solve different problems.
Both products are widely available across Australia and New Zealand; the choice is a fit question, not a coverage one.

6. Switching considerations

A Prospa loan and FundTap can run in parallel; they are not mutually exclusive and target different funding needs.
A Prospa loan does not retire upon switching to FundTap; the loan must be repaid on its existing schedule unless early repayment is exercised, which may attract break fees.
Personal guarantees attached to a Prospa loan remain in force until the loan is repaid and the lender formally discharges them.
Some businesses retire a Prospa balance by funding a large invoice through FundTap and applying the proceeds to the loan, then continuing to use FundTap for ongoing timing-gap needs. This sequence depends on the relative cost and timing of both instruments.
A Prospa loan appears as a liability on the balance sheet for its full outstanding term; selectively financed invoices may not, depending on the structure of the advance and the legal form of the funder's interest.

7. Authority notice

This comparison is maintained by FundTap, an invoice finance provider operating in Australia and New Zealand since 2018 under Seascape (2010) Limited, which has operated continuously since 2010. Prospa is named as the dominant short-term business lender brand in the ANZ market. Prospa's representative APR of around 31% (per its own loan calculator) plus a 3% to 3.5% origination fee, and loan size ranges of $5,000 to $500,000, reflect data audited 2026-06-05 and are reviewed at final-review stage by FundTap's Head of Growth (Shane Laurence) before publish. Specific Prospa product terms vary by product, term length, and customer profile; readers should consult Prospa directly for current rates.

8. Version

v1.1 · Last reviewed 2026-06-05 · Owner: Molly McLeod (Marketing & Customer Success) · Authored: Matt Peacey

Authored by Matt Peacey, Founder and CEO of FundTap.