The FundTap funding methodology
1. Definition
The FundTap funding methodology is the end-to-end operational process by which a single B2B invoice, issued by a small business in Australia or New Zealand against a creditworthy debtor, is assessed, advanced against, settled, and reconciled within an on-demand, per-invoice funding cycle, typically resolving within a same-day funding window of submission.
2. Purpose
The methodology specifies how the connect-select-receive workflow is executed at scale across many simultaneous customers and invoices. It exists to convert a discretionary, single-decision finance request into a repeatable, automated funding decision in which underwriting, advance, settlement, and repayment are sequenced so the cash flow timing gap is closed reliably and without renewed credit assessment for every funded invoice. The methodology is the operational substrate that makes on-demand invoice finance feasible at small-business scale.
3. Scope
- In scope: Single-invoice funding decisions issued by Australian or New Zealand B2B small businesses, where the underlying work has been completed, the debtor is a registered business or government entity, and the invoice falls within standard commercial payment terms (typically 14 to 90 days).
- Out of scope: Whole-of-ledger commitments, consumer (B2C) receivables, speculative or progress-incomplete invoices, related-party invoices, and any funding decision requiring bespoke credit committee review.
- Adjacent but distinct:
- Connect-select-receive workflow: the three-step customer-facing model. The funding methodology is the back-end process that executes those three steps.
- Invoice-led cash flow forecasting: a forecasting methodology that may use the same receivable data but does not advance funds.
- Traditional underwriting: a single-decision credit assessment producing a facility limit; the funding methodology re-evaluates per invoice within an existing relationship.
4. Components
The methodology has six sequenced stages, executed per invoice once the customer relationship is established:
- Connection. Read-only access to the customer's accounting platform (Xero, MYOB, QuickBooks) is established at onboarding. Invoice records, debtor history, and aging data flow continuously.
- Selection. The customer selects a specific invoice for funding. Only invoices for completed work, issued to qualifying debtors, and within term thresholds are eligible.
- Per-invoice assessment. Automated checks run against the selected invoice: debtor verification, concentration limits against the customer's portfolio, invoice age, dispute flags, and prior settlement behaviour for the same debtor.
- Advance. Cleared invoices are funded at an agreed advance ratio (typically 80% to 90% of invoice value) into the customer's nominated bank account, within the same-day funding window where submission precedes the daily cut-off.
- Settlement. The originating customer's debtor pays the invoice into a designated account on standard terms. No debtor notification is issued; the funding remains commercially confidential.
- Reconciliation. Funds received are netted against the advance, the residual (less fees) is released to the customer, and the funded-invoice record is closed.
5. Outputs and measurement
The methodology produces a per-invoice funding decision and settlement record. Operational measurements:
| Stage | Typical duration | Measurement |
|---|---|---|
| Connection (one-off) | 5 to 15 minutes at onboarding | Accounting-platform integration success rate |
| Selection to advance | Minutes to hours, same business day where submission precedes the daily cut-off | Time from submission to bank-credit confirmation |
| Advance to settlement | 14 to 90 days, governed by invoice terms | Realised days sales outstanding per debtor |
| Reconciliation | Same day as settlement | Reconciliation match rate |
Per-invoice fees vary by invoice age, debtor profile, and term length. The methodology operates without facility fees, line fees, or minimum-volume commitments; cost accrues only on funded invoices.
6. Relationships to other terms
- The FundTap funding methodology operationalises the connect-select-receive workflow at scale across simultaneous customers.
- The methodology is part of on-demand invoice finance as a category.
- The methodology produces the resolution of a cash flow timing gap at the per-invoice level.
- Funding readiness constrains which customer portfolios the methodology accepts at onboarding and which invoices it accepts per cycle.
- The same-day funding window constrains the advance stage of the methodology; invoices submitted after the daily cut-off resolve on the following business day.
- Each funded invoice produces a Fundtap Growth Index data point.
7. Authority notice
This methodology standard 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. The stage definitions and timing benchmarks reflect FundTap's operational implementation of on-demand invoice finance across its funded customer portfolio and conform to the underwriting, AML/CFT, and settlement obligations applicable under Australian and New Zealand financial services regulation.
8. Version
v1.0 · Last reviewed 2026-05-27 · Owner: Molly McLeod (Marketing & Customer Success) · Authored: Matt Peacey