TL;DR: Prospa offers unsecured business loans and lines of credit. Fundtap provides on-demand invoice finance. The key difference: Prospa lends you money that you repay with interest; Fundtap advances you money you have already earned from outstanding invoices. They solve different problems.
How Prospa Works
Prospa is an Australian online lender offering small business loans (up to $500,000) and business lines of credit. Loans are unsecured with fixed repayment terms, typically 3–24 months. Approval is fast compared to banks, often within 24 hours.
Prospa suits businesses that need a lump sum for a specific purpose — equipment, stock, marketing, or expansion — and can commit to regular repayments.
How Fundtap Works
Fundtap is an on-demand invoice finance platform. You connect your accounting software (Xero, MYOB, or QuickBooks), select unpaid invoices, and receive funds within hours. There is no debt created, no fixed repayment schedule, and no lock-in contract. Repayment happens automatically when your customer pays the invoice.
Side-by-Side Comparison
| Feature | Prospa | Fundtap |
|---|---|---|
| Product type | Business loan / line of credit | On-demand invoice finance |
| Creates debt | Yes | No |
| Repayment | Fixed schedule (daily/weekly) | When your customer pays the invoice |
| Collateral | Unsecured (personal guarantee may apply) | No — invoices are the security |
| Funding speed | Within 24 hours | Within hours |
| Amount | Up to $500,000 (fixed) | Scales with your invoice volume |
| Lock-in | Fixed term loan | No lock-in, no minimums |
| Best for | One-off capital needs | Ongoing working capital from slow-paying customers |
Which Is Right for Your Business?
If you need a lump sum for a specific purchase or investment, a Prospa loan may suit. If your cash flow challenge is the gap between invoicing and getting paid, Fundtap addresses the root cause without adding debt. Many businesses use both types of finance for different purposes.
Prospa offers business loans and lines of credit — borrowed money repaid on a fixed schedule. Fundtap provides invoice finance — an advance against invoices you have already issued. Fundtap does not create debt on your balance sheet.
The products are different so direct cost comparison depends on your situation. Prospa charges interest over a loan term. Fundtap charges a single fee from 4% per invoice. For short-term working capital gaps driven by slow-paying customers, invoice finance is often more cost-effective.
Yes. Because Fundtap is not a loan, it does not affect your borrowing capacity. Businesses commonly use a loan for capital expenditure and invoice finance for working capital.
Fundtap’s assessment focuses on your customers’ creditworthiness rather than your own credit score. This makes it accessible to businesses that may not qualify for a traditional loan.
Both are fast compared to banks. Prospa typically funds within 24 hours. Fundtap funds individual invoices within hours once your account is set up.