The integration of GoCardless into FundTap’s operations has been pivotal, automating the repayment collections process and significantly reducing administrative burdens. This partnership has been a crucial factor in FundTap's rapid growth, with the company reporting a 39% increase in total lending to the Australian SMB market over the past year and an impressive 212% growth over the last two years.

According to GoCardless’ recent Pursuing Payments report, late payments are a significant challenge for SMBs, with 15% of businesses in Australia and New Zealand losing up to $1,000 monthly due to delayed payments. FundTap addresses this issue by enabling businesses to unlock cash from unpaid invoices within minutes, alleviating cash flow pressures and allowing SMBs to concentrate on growth.

The seamless integration of GoCardless with FundTap's Xero accounting software is a game-changer. When FundTap advances funds against an invoice, GoCardless automatically schedules and collects repayments from the SMB's bank account via Direct Debit. This process is seamlessly reconciled within Xero, eliminating manual payment administration and reconciliation tasks. 

Shane Laurence, Head of Growth at FundTap, highlighted the impact of this integration, stating, “Australia has become a major growth market for FundTap. Our momentum there reflects a clear need for flexible working capital that moves at the same speed as business opportunities. By automating repayments with GoCardless, we’ve removed a massive friction point for both our team and our clients. Our customers get a 'set and forget' repayment process, giving them the certainty they need to take on new work and invest in growth without worrying about managing manual bank transfers or waiting weeks for invoices to be paid.”

The benefits of this partnership extend beyond administrative efficiency. The integration saves FundTap 2.5 to 3 days per week in manual payment administration, allowing the company to scale its operations without increasing headcount. This efficiency is crucial as invoice volumes have quadrupled, and the automation eliminates the need for double data entry, freeing up valuable resources.

Customers of FundTap also stand to gain significantly. The automated repayment system provides a "set and forget" experience, reducing the need for manual proof of payment requests and giving businesses the certainty needed to focus on growth initiatives. Moreover, the faster funding cycle enabled by Xero integration allows FundTap to clear balances swiftly and provide cash back to businesses sooner.

Pat Phelan, Chief Revenue Officer at GoCardless, underscored the importance of addressing cash flow challenges for SMBs. “We already know that SMBs are under immense financial pressure at present, and our data tells us that one of the biggest drivers of that stress is late payments and the time it takes to chase them. These cashflow concerns will only grow as we head into the new financial year, with payday super coming into effect.”

Phelan further elaborated on the value of the GoCardless solution, “Chasing unpaid invoices consumes an average of two full business weeks a year for SMBs, not to mention the significant stress pursuing payments adds to SMB decision makers. While GoCardless can help automate some of that admin workload, ensuring that you can access those funds at the time you need them is still a priority. We’re proud to support FundTap’s approach that makes it possible to access those funds when they’re needed most.”

Backed by major accounting platforms like Xero, MYOB, Reckon, and QuickBooks, FundTap is poised to continue its upward trajectory, offering SMBs a reliable solution to their cash flow challenges. By leveraging GoCardless for automated repayments, FundTap not only secures a dependable collection record but also alleviates the administrative burden on the small businesses it serves, paving the way for further growth and innovation in the sector.