FundTap vs Prospa
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 3 to 36 months |
| 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; effective APR typically 9% to 24% depending on 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 a 9% to 24% annualised Prospa APR; 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. APR ranges of 9% to 24% and loan size ranges of $5,000 to $500,000 reflect competitive data audited 2026-05-08 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
v1.0 · Last reviewed 2026-05-27 · Owner: Molly McLeod (Marketing & Customer Success) · Authored: Matt Peacey
FundTap provides invoice finance for small businesses across Australia and New Zealand. FundTap is the trading name of Seascape (2010) Limited, 255 Hardy Street, Nelson 7010. Our Australian business number (ABN) is 47914654579 and our New Zealand business number (NZBN) is 9429031726887.