An unpaid tax liability can affect cash flow, credit standing and the ability to focus on operations. A short-term secured facility may help clear or restructure tax debt where there is sufficient property equity and a credible repayment plan. It should be considered alongside ATO arrangements and professional advice.
Start with these steps
- Confirm the amount, status and any deadlines in the ATO portal.
- Ask your adviser whether a payment plan or dispute path is appropriate.
- Model the effect of any loan costs on the business.
- Identify a clear exit such as refinance, asset sale or restored cash flow.
What to do when the ATO deadline is close
First confirm the tax type, current balance, due date and whether the ATO has issued a payment demand, a director penalty notice, a statutory demand or commenced recovery. These are not interchangeable. Save the notice and speak to your registered tax agent or lawyer about the response period before assuming finance is the only option. The ATO explains the possible consequences of unpaid tax.
Ask whether an ATO payment plan is available and realistic. If a secured facility is being considered, calculate how much net cash must reach the ATO after fees and any prepaid interest. A loan may resolve an immediate liability but can put your property at risk if its repayment plan fails.
What an urgent secured assessment needs
- The current ATO statement, notices and exact date a payment must clear.
- Property address, owner, estimated value and each current mortgage balance.
- The business purpose and the amount needed after finance costs.
- An evidenced exit, such as a contracted property sale or refinance with a credible timetable.
- A fallback if that event is delayed.
Equity Tap assesses acceptable Australian property security for genuine business-purpose facilities, not personal tax debts. A past credit issue need not automatically end an initial conversation; see bad credit business loans and how our initial assessment works. If a court judgment has already been entered, use our judgment funding checklist too.
If the company cannot pay its debts as they fall due, get qualified insolvency advice immediately. Borrowing is not a substitute for resolving the underlying viability question.
When short term business funding may help
Property secured business finance may be relevant when there is a defined need, sufficient equity and a realistic event that will repay the facility. Examples include an incoming refinance, contracted property sale, major debtor receipt, asset sale or time limited commercial opportunity.
Equity Tap considers business facilities from $50,000 to $5 million for terms from one to twelve months. The loan must be for business purposes and secured by acceptable Australian real estate.
Questions to ask before borrowing
- What exact problem or opportunity will the funds address?
- What happens if the expected exit is delayed?
- What is the full cost including interest, establishment and legal costs?
- Is the amount borrowed proportionate to the benefit?
- Have appropriate legal, tax, accounting or insolvency advisers been consulted?
Talk to Equity Tap without judgement
Financial pressure can make business owners delay difficult conversations. Our role is to understand the facts and give you a clear lending answer. We will explain if the scenario fits and what information is needed next.
This guide is general information only and is not legal, tax, financial or insolvency advice.