A Smarter Way to Manage Cash Flow: Introducing Taxi

Posted on 16 May 2025

At Monteck Carter, we’re always looking for smart, practical ways to help our clients manage cash flow more effectively, especially in today’s uncertain economic environment.

One tool we recommend considering is Taxi (www.gotaxi.co.nz).

Taxi is an innovation in business financing that creates a new source of capital at lower costs than bank lending, using the provisional tax framework. In simple terms, it allows you to use your provisional tax payments as a source of security giving you fast, flexible, and affordable access to working capital when you need it most.

This idea is not new. Large corporations have been accessing funding against their provisional tax obligations for years. What Taxi has done is open up the same advantages to small and medium-sized businesses, making it simple, accessible, and designed specifically for the needs of growing New Zealand businesses.

Here’s how Taxi works:

• Sign up and create your Taxi account online, adding your business details, including IRD number.
• Pay your August 28 provisional tax payment through Taxi. Your tax payments are held on your behalf by Public Trust at Inland Revenue.
• Your provisional tax payments can now act as security to access funding at 5.9% per annum, plus a small facility fee.
• You can now access funds whenever your business needs them. Funds are released the next working day.

Key features include:

• Flexible terms: Draw down as much or as little as you need. No fixed repayments unless you want them.
• Lower cost: Because the funding is secured against your provisional tax, Taxi is significantly cheaper than most unsecured lending or credit facilities.
• No security required: No need to tie up personal guarantees or assets.
• Confidential: There’s no impact on your existing banking relationships.
• Pay early, pay late, or pay on time: Taxi gives you the flexibility to match your tax payments with your cash flow.

Managing cash flow is a challenge even for healthy businesses. New Zealand data shows that SMEs experience negative cash flow around four months each year¹. Rather than stretching yourself thin or missing opportunities, using tools like Taxi can allow you to run your business more strategically.

Taxi can be a smart solution if you:

• Are balancing tax payments alongside other operating expenses,
• Want to invest in growth but need to preserve cash reserves,
• Prefer not to extend your overdraft or use expensive short-term financing,
• Value having fast, flexible funding options without heavy paperwork or additional guarantees.

If you think Taxi could be helpful for your business, we are happy to talk it through with you or assist you with the process.

As always, our goal is to support you with tools, advice, and options that make your business stronger, and Taxi is one more way to give you the flexibility and confidence to keep moving forward.

Feel free to get in touch if you’d like to explore whether this could be a good fit for your business.

¹ Xero Small Business Insights, 2022