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 on the invoice due date, whereas Prospa is a 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 | Business loan or line of credit from Prospa as lender |
| Commitment scope | Per-invoice; no continuing facility | Business loans run for a fixed term of up to 5 years (terms over 3 years only for amounts above $150K); the line of credit runs on a 2-year term that can be renewed |
| 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 | Within 2 hours once approved | Apply in about 10 minutes; decision within a business day, often a few hours; funds usually arrive within an hour of signing the loan documents |
| Fee structure | One fee per invoice, from 4% of invoice value, quoted in full before you accept | Business loans: a fixed interest rate plus a 2% to 3.5% origination fee (Prospa's loan calculator uses a 31% APR and a 3.5% fee as its example; actual rates vary by profile and term). Line of credit: interest on the drawn balance plus a weekly service fee, with no origination fee. Choosing to earn Qantas Points adds 1% to the origination fee |
| Security or PG required | Your invoices are the main security; personal guarantee required | No upfront security up to $150K; above $150K, property or asset ownership is required, and Business Loan Plus needs upfront property security. Personal guarantee typically required |
| Repayment mechanism | Automatic direct debit on the invoice due date | Fixed weekly repayments drawn from your nominated account |
| Reversibility | High; the business can stop using FundTap after any funded invoice settles | Low; contractual term in force until repaid; paying the loan out early costs 1.5% of the remaining principal, on Prospa's published terms |
| Funding range | Anchored to the invoice value | Australia: business loans from $5K to $500K, a line of credit up to $500K, and Business Loan Plus from $500K to $1M (property security required). New Zealand: business loans from $5K to $150K, Business Loan Plus from $150K to $500K, and a line of credit up to $500K |
| Who can apply | Businesses trading in Australia or New Zealand that invoice customers on terms. General guide: at least 3 months trading and more than $5,000 a month in revenue. No minimum number of invoices | Small business loan: from 6 months trading and $6K monthly turnover. Line of credit: at least 2 years trading. Business Loan Plus: at least 3 years trading and $2M annual turnover in Australia ($1M in New Zealand) |
| Rewards | None | In Australia, Small Business Loan and Business Loan Plus customers can choose to earn 1 Qantas Point per $1 funded (up to 500,000 points per loan), which adds 1% to the origination fee |
| 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 one automatic repayment on the invoice due date rather than 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 per-invoice fee from 4% 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 it is paid out early, which costs 1.5% of the remaining principal plus accrued interest, on Prospa's published terms.
- 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 figures (Australian business loans from $5,000 to $500,000 and Business Loan Plus up to $1M, New Zealand business loans up to $500K, origination fees of 2% to 3.5%, a representative 31% APR in its loan calculator, and its Qantas Points offer) were re-read from Prospa's published pages and loan calculator on 2026-10-07 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
v1.3 · Last reviewed 2026-10-07 · Owner: Molly McLeod (Marketing & Customer Success) · Authored: Matt Peacey
