Meet Taxi - Smarter Business Funding for your Business

Need your tax money for business costs and lending costs are up the wazoo? Taxi might just be your new best mate.

Taxi is is a new product that enables you to obtain business funding at a low cost secured by your provisional tax payments. 

It’s effectively is a way to access your own money and have a facility to cash at cheaper rates than what the bank offer by using your provisional tax money. You pay your provisional tax to Taxi, and three days later you can access up to 90% of the provisional tax payments you have paid through Taxi in the previous 12 months.

You can use your money back from Taxi for whatever you like to run your business.

To access this funding, you need to pay your provisional tax payment into the Tax Traders tax pool account. This will be a change, but we've been working with Tax Traders for a while now and we wanted you to know about this new opportunity as it’s a super handy product to give taxpayers flexibility with their cashflow during these challenging times, but also can be used as a tool to enable business growth. 

There is no cost for paying your provisional tax into the Tax Traders tax pool account at Inland Revenue, but doing so gives you the opportunity to unlock (relatively) low-cost funding to support your business growth. If you don’t open a Taxi account or use the facility, your tax is paid on time and it’s no change to your ‘normal’.

What does Taxi cost?

At the time of writing this (August 2024), your rate with Taxi is 7.09% p.a plus a facility fee of 0.15% per month on the Taxi facility limit. You can set your facility limit equivalent to up to 90% of the funds deposited in the previous 12-month period. The interest rate is fixed and paid upfront. If you repay your funding early, we provide a rebate against your prepaid interest. The facility fee is calculated monthly, billed quarterly and is comparable to a big bank line fee on an overdraft.

As a comparison of rates, the IRD currently charges 10.91% on unpaid tax, and Tax Management NZ charge over 8% for tax pooling so this option works out as better value for money if a facility is required.

Taxi’s interest rates will no doubt change as the market interest rate changes, but with how they can use provisional tax money, it’s safe to say it will likely always be at a cheaper rate than what the bank can offer!

Prosper is a a Taxi Partner, you will receive 10% off your quarterly facility fee.

Disclaimer: If you then decide to sign up for a Taxi account to unlock this funding, please note that we do receive a commission to cover our cost of supporting your Taxi account.