Value Proposition

Apxium's Smart Payments Technology, combined with its deep relationships with highly credible Accounting Firms, delivers deep tangible value to both the Firm and its clients as follows:

1. Cash Flow Optimisation: Tax Pay completely removes the multiple seasonality issues for each tax obligation. Tax obligations come in various forms (income tax, Pay-As-You-Go (PAYG Tax), PAYG employee tax, GST, VAT etc.), presenting varying cash expense profiles (timing and amount) that rarely match a business’ cash revenue profile. Each of these individual tax obligations present ‘seasonality’ issues, as tax expenses must be paid in regular prescribed intervals regardless of the timing of the business’ cash revenue and working capital cycle.

2. Operational Efficiencies - Tax Agents: Accounting Firms (in their role as Tax Agent for their clients) spend significant time attempting to negotiate payment arrangements with the tax/revenue authority on behalf of their clients. The tax/revenue authorities are deliberately difficult to contact and must only act within certain predefined parameters which makes the entire process extremely inefficient and time consuming for the accountant. Tax Pay solves this problem for both the accountant and its clients, saving significant time, cost and waste.

3. Mitigate Legislative Risk: In Australia, various States are enforcing new tax rulings, which may be retrospective and progressive. Tax Pay ensures that businesses can access funding to meet such unforeseen liabilities. Adding to the problem is that the Australian and U.S. the tax/revenue authorities will no longer allow ‘affordable’ tax payment plans. In Australia, interest on such payment plans is no longer tax deductible either. In essence, recent changes have enforced a zero-tolerance stance on outstanding tax obligations, particularly for profitable businesses.

4. Overcome Bank Lending Covenants: Similarly, banks are resistant to renew credit lines until outstanding tax debts are settled. This situation is exacerbated in that tax/revenue authorities provided no/low interest tax payment plans to businesses during the COVID-19 pandemic, which have accrued to significant levels. Tax Pay therefore ensures that businesses are not restricted from accessing growth capital from their main banking relationships.

Eligibility and credit due diligence is undertaken with the assistance of borrowers’ Accounting Firms, with which Apxium holds deep relationships. Apxium already has some degree of credit history over these businesses, given Apxium’s visibility over their real time payment performance of accounting fees (i.e. Apxium’s AR Software and Payments Technology is fully data integrated with the receivables ledger of their Tax Agents' Practice Management Software). The depth of data integration is discussed in the Professional Fee Funding Lending Strategy section.