Insolvency is a legal and financial issue, not simply a bad month. Directors should get qualified advice early. Funding can sometimes create time to complete a sale, refinance, collect a debtor or implement a genuine turnaround, but it is not a substitute for advice and must not worsen an unworkable position.
Start with these steps
- Get current cash-flow, creditor and tax positions into one place.
- Speak promptly with a registered insolvency practitioner, accountant or lawyer.
- Do not incur new debt without understanding whether the business can repay it.
- Identify assets, available property equity and credible recovery events.
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.