Fundtap helps businesses grow, improves cashflow, with invoice finance

Are cashflow pinch points hindering the growth of your business? Now there is a fast, trustworthy alternative to traditional bank lending. Two Kiwi businesses explain how FundTap worked collaboratively with them to support their growth.

YUM are the pioneers of delectable, handmade NZ granola and breakfasts available to households, cafes, hotels and supermarkets around the country.

After experiencing high demand and growth, YUM began observing a pattern in their cashflow. They found themselves in a pinch for a couple of weeks each month between receivables and payables and actively sought a solution to help smooth that gap. After speaking to their bank, their bank referred them to invoice financing service FundTap.

YUM were looking for unsecured financing that was affordable and realistic. FundTap stood out because it was a local provider with a more personal approach to working together.

“We love the convenience and accessibility,” says Sarah Hedger, YUM Co-Founder. “There is always someone available to answer questions and assist us. It’s quite a simple system too. FundTap has enabled us to do things with our business that we wouldn’t have been able to do otherwise.”

YUM has been able to launch a new product flavour, No 8 – 100% NZ grown granola. “This was a lockdown idea that we were able to push out to the market in three months with support from FundTap. We achieved phenomenal sales and growth as a result and were able to achieve scaleability more easily with FundTap’s support. We were able to make cost savings by ordering larger volumes of ingredients, and by having capital available to pay for large packaging runs with long lead times.”

YUM value the speed at which FundTap operates. “It’s so important to be able to strategise with human beings on the other side of the phone so that we can come up with solutions together.”

Looking ahead, YUM want to switch their packaging to compostable materials, which will involve a significant capital outlay. “We’ve found that start-ups don’t look favourable to a bank on a piece of paper. But given the progress we’ve made while using FundTap, we’ll continue working together to achieve success in this next step in our growth plan.”

                                                                   Sarah Hedger of YUM

                                                                                                                  Aaron Orchard of Phoenix Kitchen

Phoenix rises due to FundTap support

Phoenix Kitchen Transformations are leading kitchen design experts in New Zealand, renovating and redesigning timeless kitchen spaces for any taste and style. After social media marketing in the industry led to rapid growth and increased demand for retail kitchen spaces, Phoenix Kitchen Transformations reached out to FundTap to secure capital to support its business growth. 

Phoenix Kitchen Transformations cashflow issues were based on the need to buy materials in advance, pay contractors during a renovation, and financially support the development of many designs at different stages all at once. Phoenix Kitchen Transformations knew invoice financing was a fast, trustworthy alternative to traditional bank lending. They selected FundTap due to its simple processes and compatibility with Xero.

Phoenix Kitchen Transformations found that banks required they prove they didn’t need financing in order to be able to smoothly obtain bank financing. With prior knowledge of the invoice financing industry, Phoenix Kitchen Transformations instantly had confidence in the team and FundTap service, noting the very reasonable fees and the impressive speed with which funding was advanced.

Phoenix Kitchen Transformations were particularly pleased with the simplicity of the FundTap process. The ability to connect FundTap to Phoenix Kitchen Transformations’ accounting software meant a seamless process, with the FundTap team monitoring transactions through Xero.

“Being able to easily contact the team at FundTap is really helpful, as is the speed at which things can be sorted, particularly when it’s more urgent,” says Aaron Orchard from Phoenix Kitchen Transformations.

“It’s made finances a lot easier. I can buy materials in bulk rather than as I go, which saves me money and valuable time. FundTap allows the leeway for us to use our finances strategically to remain competitive and maintain momentum for the continued growth of our business.”

www.fundtap.co