Cash flow worries keep small business owners awake more than almost any other issue. Invoices go out before customers pay, stock must be bought before it sells, and a slow month can arrive without warning. In 2021, Australian buy now, pay later company Zip tried to ease that squeeze with Zip Business Trade Plus, a credit line built for small firms. This guide explains what the product offered, who could use it, what it cost, why Zip shut it down, and how to approach working capital today.

This is general information, not financial advice. Check current terms with any lender and consider talking to an accountant or adviser before borrowing.

Is Zip Business Trade Plus Still Available?

No. Zip stopped taking new applications, and both its business trade products closed from 1 September 2022. Customers with accounts in good standing could keep making purchases up to and including 31 August 2022, and each account closed once the balance owing reached zero. Zip’s help centre now says that its business credit products have been closed, and that affected customers received a notice that their accounts had moved to third-party companies. Anyone searching for the product today is usually looking for history, an old account, or a replacement.

What Was Zip Business Trade Plus?

It was a business line of credit that sat above Zip’s smaller checkout-style Trade account, which covered purchases of up to $3,000. At launch, the credit line ranged from $3,000 to $150,000 and was interest free for 60 days.

The main features were:

• Large limits. Credit of up to $150,000 for businesses that qualified.
• An interest-free window. Purchases could be repaid within 60 days without interest.
• Quick decisions. Zip said approval could come within 24 hours.
• Flexible use. The credit worked online, in stores, and even for bills and invoices.
• Tap to pay. Zip later added a one-tap digital wallet option for businesses with an account, usable wherever Visa is accepted.
• A large merchant network. About 35,000 approved merchants, including well-known hardware and office supply retailers.

Who Could Apply?

Applicants needed an active ABN or ACN, at least six months in business, and at least $5,000 in monthly sales, and Zip’s usual lending criteria still applied. That made it a product for established small businesses, not brand-new startups.

How Zip Business Trade Plus Helped With Cash Flow

The appeal was timing. Many small firms pay suppliers first and get paid later, which creates a gap. A credit line can bridge that gap so a business can buy stock, tools, or supplies without draining its bank balance.

Zip’s launch announcement pointed to the scale of the problem, saying cash flow was a key issue for 70 percent of Australia’s small businesses. That figure came from the company’s own announcement, so treat it as a marketing claim rather than independent research. The pitch was speed and simplicity compared with credit cards, bank loans, and overdrafts.

In practice, the benefits were:

• Smoothing out large one-off purchases
• Keeping cash in the bank for wages and rent
• Avoiding a long loan application for everyday supplies
• Giving owners a predictable repayment window

The Costs and Risks Owners Weighed

Interest-free credit is only cheap if you repay on time. Owners who used Zip Business Trade Plus needed a clear plan for clearing balances inside the free window, because the alternative could cost more. Customers who chose to repay in four equal instalments paid a fee of 3 per cent of the purchase value, and monthly late fees on the smaller Trade account rose from $12 to $20.

Critics of buy now, pay later credit also argued that some services are simply an expensive line of credit that may not put customers’ best interests first. The lesson holds for any short-term business credit: the product is helpful when it is paired with a repayment plan and risky when it becomes a habit.

Zip Business Trade Plus Timeline: From Launch to Closure

When	What happened
2020	Zip Business began after Zip’s acquisition of Spotcap Australia and New Zealand.
April 2021	The credit line launched with limits up to $150,000.
Later in 2021	The tap-to-pay option arrived for account holders.
June 2022	Management signalled it would “simplify and prioritise” its Australian business.
1 September 2022	Both trade products closed to new use.
1 May 2023	Zip told staff its remaining business loan product, Zip Business Capital, would also be wound down.

Why Zip Business Trade Plus Was Discontinued

Zip told customers that the current environment forced a tough decision to close the Trade and Trade Plus services and focus on its core consumer and merchant offerings. The company also said it was reprioritising resources to deliver sustainable profitability in its core ANZ market.

Put simply, business credit is a different kind of lending from consumer buy now, pay later. It carries different risks and demands different resources, and Zip chose to concentrate on what it considered its core strengths. The closure says little about whether small businesses need flexible credit (they clearly do) and a lot about how quickly a provider can withdraw a product.

What Happened to Existing Accounts?

Accounts were not simply erased. Zip’s help page lists third-party companies, including Pioneer Credit and Prospa, that took over some closed accounts, and customers received a “Notice of Assignment” naming the new contact. If you still have a balance from Zip Business Trade Plus, find that notice, confirm who now holds the account, and contact them directly or through Zip’s help centre. Keep your statements until the balance is fully cleared.

What Can Small Businesses Use Instead?

Product names differ by country, so compare categories first and providers second.

Option	Best for	Watch out for
Business credit card	Everyday purchases with a short repayment window	High rates on carried balances
Overdraft or bank line of credit	Ongoing, revolving working capital	Fees, review dates, and security requirements
Invoice finance	Firms waiting on large unpaid invoices	Fees on each invoice and customer involvement
Short-term business loan	One-off needs such as stock or equipment	Total repayment cost and early-payoff terms
Supplier trade terms	Regular purchases from the same suppliers	Late-payment penalties and lost discounts
Business buy now, pay later	Smaller, planned purchases	Fees if you miss the interest-free window

Many owners who once relied on Zip Business Trade Plus now compare these routes, and the right mix usually depends on how predictable your sales are.

How to Compare Working Capital Options

Use the same checklist for every offer so you compare like with like:

1. Total cost. Add interest, establishment fees, late fees, and any instalment charges.
2. Interest-free period. Check exactly how long it lasts and what happens afterward.
3. Credit limit and growth. Ask whether the limit can rise as your business grows.
4. Security. Find out whether it needs a personal guarantee or business assets as collateral.
5. Speed. Fast approval matters in emergencies, but do not let speed rush you past the terms.
6. Flexibility. Look at early repayment, hardship options, and what happens if the provider changes the product.
7. Provider stability. A lender that might withdraw the product is a risk, so favor established providers and keep a backup.

When comparing offers like the one Zip Business Trade Plus used to represent, always ask what the provider can change after you sign.

Lessons From the Rise and Fall of Zip Business Trade Plus

• Never depend on one source of credit. Keep at least two options available, such as a card and an overdraft.
• Read the terms and fee schedule. Instalment fees and late fees were part of what made this product costlier than it first appeared.
• Plan your exit before you borrow. Know exactly when and how you will repay each draw.
• Expect change. Products, pricing, and even whole lending arms can disappear, so review your funding every year.
• Use credit for timing, not for losses. Borrowing to bridge a delay is healthy, and borrowing to cover a business that loses money is not.

Cash Flow Habits That Reduce Borrowing Needs

The cheapest credit is the credit you do not need. Even a large limit like the one Zip Business Trade Plus offered cannot fix weak forecasting. These habits help:

• Invoice immediately and follow up on late payers within days.
• Offer small early-payment discounts where margins allow.
• Negotiate longer supplier terms as your relationship grows.
• Keep a rolling 13-week cash forecast and update it weekly.
• Set aside tax and super money in a separate account.
• Build a buffer of at least a few weeks of fixed costs.

Good records and tidy systems make all of this easier. Our guide to management tools for software developers shows how to choose simple tools for tracking work, and our no-jargon investment guide is a helpful next read once your cash flow is stable and you want to grow your savings.

Frequently Asked Questions

Can I still apply for Zip Business Trade Plus?
No. Applications closed before the product shut down in 2022. Look at current business credit options instead, and use the checklist above to compare them.

What was the credit limit?
Limits ranged from $3,000 to $150,000 at launch, depending on the business and Zip’s assessment.

Was it really interest-free?
Purchases were interest free for 60 days, but fees could apply, including a 3 per cent fee on instalment plans and late fees if payments were missed.

Is it the same as the consumer Zip account?
No. It was a business product with its own limits, eligibility rules, and terms and conditions, although it worked in a similar buy now, pay later style.

Who do I contact about an old account?
Start with Zip’s help centre. It lists the companies that took over closed business accounts and explains how to reach them.

What is the safest way to bridge a cash flow gap?
There is no single answer, but a mix of supplier terms, a modest overdraft or card, and a regular cash forecast gives most small businesses more options than relying on one product.

Conclusion

The story of Zip Business Trade Plus shows both the appeal and the fragility of fast, flexible credit. It gave small firms large limits and quick access, then disappeared when its provider changed direction. The practical takeaway is to compare options carefully, protect yourself with a backup, and build cash flow habits that make borrowing a choice instead of an emergency. For more practical business guides, browse the Team Disquantified blog.