Ake teams up with Taxi to help businesses of all sizes access affordable working capital
4 October 2024
We’re excited to share that Ake has become a Taxi partner. Taxi is changing the game for Kiwi businesses by making it easier to access low-cost funding, by leveraging your provisional tax payments.
Instead of sitting idle for months at a time, Taxi enables your provisional tax payments to be a new source of funds for your business. No financial disclosures or guarantees are required, and approval is automatic. Using Taxi also doesn’t impact your other lending arrangements.
With the support of IRD-approved tax pooling intermediary Tax Traders, Taxi helps businesses of every size tap into capital at roughly half the cost of a traditional bank overdraft.
As at 4 October 2024, Taxi is offering a 7.09% p.a. interest rate (you can visit Taxi’s homepage for the most up to date rates).
How does Taxi work?
Taxi gives you the opportunity to access working capital that can be reinvested into your business, helping to fuel growth and smooth out cash flow.
After signing up for a Taxi account and linking your MyIR, you’ll make your next provisional tax payment through Taxi. These tax payments will be held on your behalf by Public Trust in an account at Inland Revenue.
Once you have made your first provisional tax payment into your Taxi account, you’ll be able to access up to 90%* of that amount for up to nine months.
You can access as much or as little as you need of the funds deposited in to your Taxi account in the previous 12 months.
As long as you have completed a simple anti-money laundering check, funds will clear into your bank account within three working days.
You can access funds for your business from your Taxi account for up to nine months at a time.
*Based on market rates
What is the cost to use Taxi?
When you use Taxi, there are two types of fees charged:
A quarterly facility fee** calculated at 0.45% of your Taxi facility limit. This fee is calculated daily and charged quarterly, starting once your provisional tax is paid through Taxi. The minimum fee is $89.70 per quarter.
An interest fee on the funds you access, which is charged upfront. You can find the latest Taxi interest rates on the Taxi website here. If you repay these funds before the end of the repayment term, Taxi will issue a rebate for any interest prepaid for the remainder of the term.
SPECIAL OFFER
As a Taxi partner, you’ll receive a 10% discount on your quarterly facility fees when you register for Taxi through Ake. It also means we’ll be able to keep track of your position and tax payments, enabling us to give you the best advice and simplifying your year end accounts process.
Find out more:
To find out more or register for Taxi, email Matthew on matthew@akeaccounting.co.nz.