FundTap has partnered with GoCardless to automate repayment collections for its invoice finance products in Australia and New Zealand, supporting its growth in Australia, CFOtech Australia reported.
The integration allows the invoice finance provider to schedule and collect direct debits automatically, reducing its reliance on manual bank transfers.
The GoCardless service integrates directly with FundTap’s Xero accounting software.
The company stated that the new system has eliminated up to three days of manual payment administration and reconciliation work each week.
By linking repayment collection directly into its finance workflow, FundTap has removed double data entry while handling a fourfold increase in invoice volumes.
Faster clearing of balances enables the company to recycle funds back into the market more efficiently.
FundTap provides invoice finance to businesses seeking earlier access to cash tied up in unpaid invoices. Borrowers draw funds against these invoices and repay the amount automatically from their bank accounts.
The platform is backed by integrations with major accounting software providers including Xero, MYOB, Reckon and QuickBooks.
Managing Australian lending growth
The operational upgrade supports the company’s expansion of lending activity in Australia without adding headcount.
FundTap recorded a 39% rise in total lending to Australian small and medium-sized businesses over the past year.
“By automating repayments with GoCardless, we’ve removed a massive friction point for both our team and our clients,”
said Shane Laurence, Head of Growth at FundTap.
Laurence added that the automated process gives customers more certainty when taking on new work without managing manual bank transfers.
GoCardless’s recent Pursuing Payments report indicated that 15% of smaller businesses in Australia and New Zealand estimate losing up to A$1,000 a month from late payments.
Pat Phelan, Chief Revenue Officer at GoCardless, noted that pursuing unpaid invoices is also a time-consuming process for small business owners. He said it consumes an average of two full business weeks a year.
“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,”
Phelan said.
GoCardless currently processes over US$130 billion in payments annually for more than 100,000 businesses across more than 30 countries.
Featured image credit: Edited by Fintech News Australia, based on image by ghiska via Magnific
