In a landscape where financial liquidity can be the difference between thriving and merely surviving, New Zealand businesses now have a new ally in their corner. Taxi lets small businesses secure affordable business funding, supported by their provisional tax payments. Taxi’s been developed with a low-cost fee structure and is designed to be accessible and flexible to all taxpaying Kiwi businesses.
Taxi is here, marking a significant step forward in how provisional tax payments can be a tool for growth rather than purely a financial obligation for Kiwi businesses. Now every Kiwi business can access radically affordable working capital (hello 7.09%) which is backed by their provisional tax payments. This flexible new working capital solution is poised to fuel New Zealand's business landscape to the tune of billions of dollars.
What is Taxi?
Taxi is a ground-breaking financial platform designed to see New Zealand businesses keep moving forward. It transforms businesses’ provisional tax payments into a source of funding. By leveraging the mechanisms of New Zealand's existing tax system, businesses can access an amount up to 90% of their provisional tax payments (paid through Taxi in the prior 12 months) at the low interest rate of 7.09%. Not only this, but the sign-up process is simple and doesn’t require financial disclosures or credit checks. Taxi offers a smarter way to manage cash flow, providing businesses with access to the funds they need, when they need them.
How does Taxi work?
The journey with Taxi begins with a simple sign-up process, seamlessly integrating with your business' myIR account. Once set up, Taxi allows businesses to use their provisional tax payments to power access to business funding.
Here's how it works:
Sign up and link your myIR: Create an account and link your myIR data with your Taxi account. No credit checks or financial disclosures required.
Pay your tax: Make your next provisional tax payment through Taxi. Your tax payments are held on your behalf by Government-owned Public Trust in an account at Inland Revenue.
Access funds: You can access funds within three working days, based on your provisional tax payments paid through Taxi. Repayment is flexible and works with your business.
This process transforms your provisional tax payments into an opportunity for businesses to invest in growth, manage unexpected expenses, or simply smooth out cash flow fluctuations.
How Taxi can help NZ businesses
We developed Taxi so all Kiwi businesses can use their provisional tax payments to access affordable funding.
Here are some of the benefits:
Improved cash flow management: With immediate access to working capital, you can better manage cash flow, ensuring you have the funds necessary to operate smoothly without dipping into emergency reserves or expensive credit lines.
Cost-effectiveness: Taxi presents a more affordable option compared to traditional funding sources like big bank overdrafts, with competitive interest rates and no hidden fees. Research by the NZIER suggests that the savings to Kiwi businesses using Taxi could be up to $580 million.
Safe and secure: Taxi uses the platform created by Inland Revenue-approved tax pooling intermediary, Tax Traders. All tax payments made through Taxi are handled by Government-owned Public Trust and held in the Tax Traders tax pooling trust account at Inland Revenue.
Simplicity and convenience: Managing provisional tax payments and accessing funding through Taxi is straightforward, eliminating the complexities often associated with financial management. Our web app is mobile friendly and will keep you up-to-date with your Taxi account– so you can check up on things on the go!
Versatility: Whether you're a hospitality company in Queenstown looking to get through seasonal fluctuations, a manufacturer in Taranaki needing to purchase inventory, or a service provider in Nelson that just wants the safety net that Taxi offers, we've designed Taxi to support your unique business needs.
Empowerment: By providing financial flexibility, Taxi empowers businesses to make responsible business decisions – allowing them to flourish and grow faster.
Why hasn't it been done before?
Taxi revolutionises access to a key benefit of New Zealand's tax system, previously available to only large corporations. The challenging times of COVID highlighted how some smaller businesses experienced challenges accessing the financial benefits of New Zealand's provisional tax system that larger corporations could benefit from. Taxi's technology removes the need for expensive legal fees and manual processing. It enables quick, affordable access to funds for businesses of all sizes, and democratises the benefits of New Zealand's tax system to every business paying provisional tax.
Building on this foundation, Taxi has been in development for the past two years, built by leading accountants and tax and technology experts to meet the needs of New Zealand's diverse business landscape. Since our Early Access Programme, we’ve seen the widespread adoption of Taxi across New Zealand. It's clear that businesses of all types, sizes, and industries are finding tremendous value in our innovative financial solution. From bustling cafés in Wellington to insurance brokers in Auckland, companies across Aotearoa are leveraging Taxi to turn their provisional tax obligations into opportunities for growth. Taxi’s universal appeal underscores its effectiveness in providing a flexible, cost-effective, and accessible financial tool that meets the diverse needs of the Kiwi business landscape.
Sources
NZIER. 2024. The economic benefits of Taxi.
