How a crisis builds
Most business crises follow a pattern. A big customer pays late, or a project runs over budget, or a quiet quarter eats the buffer. One bill goes unpaid, then another. A supplier puts the account on stop. Without stock, sales slow and the problem gets worse. The landlord sends an arrears notice. The ATO calls. Staff notice. By the time the owner looks up, five problems are feeding each other.
The cheapest point to fix a crisis is early, while it is still one or two problems. That is when fast funding does the most good. It clears the immediate pressure, gives you room to think, and lets you fix the underlying cause without a creditor setting the timetable.
The pressure points we fund most
| Pressure | What can happen if it is left | Where to read more |
|---|---|---|
| Supplier stop-supply | No stock, no sales, customers go elsewhere | Stock funding |
| Lease arrears | Notice of breach, possible lock-out or loss of premises | Urgent business loans |
| Creditor pressure | Legal action, judgments, damaged supplier relationships | Loans after a court judgment |
| Tax debt | Penalties, garnishees, director exposure | ATO tax debt loans |
| Late customer payments | Cash gap that triggers every other problem | Debtor paying late |
Why the bank is not the answer in a crisis
A bank looks at a business under pressure and sees risk. It wants years of financials, recent statements and a clean credit file, and a bank facility commonly takes up to three months or more. By then the supplier has moved on and the landlord has acted. Cash flow lenders may be quicker, but they look closely at recent trading, and a business in difficulty often has weak recent figures and daily repayments that add pressure rather than relieve it. If you have already been declined, see declined by a cash flow lender.
How Equity Tap helps
Equity Tap lends from $50k to $5m for one to twelve months, secured by a first mortgage, second mortgage or caveat over residential or commercial property anywhere in Australia. Because the loan is secured by property, we do not need tax returns, BAS, profit and loss statements, an accountant's letter or bank statements. That matters in a crisis, because the figures that would worry a bank do not decide our answer.
No credit check is made at initial assessment. Bad credit history, defaults, ATO debt or a past decline are not automatically a problem. A credit check may be made before funding. We are business owners lending to business owners, and we understand that a tough patch does not mean a bad business.
Interest for up to the first six months can be prepaid or added to the loan, so there are no scheduled payments in that period. That is a big deal when cash is tight: the loan relieves pressure instead of adding a new weekly bill. Interest is not waived, and the full cost is shown before you proceed.
The exit matters even more in a crisis
Borrowing to fix a crisis only works if there is a real way to repay. We are an ethical lender, so before you proceed we make sure you fully understand the loan, the costs and the exit. Common exits in crisis scenarios include:
- Collecting overdue receivables once the immediate pressure is off
- Refinancing to a bank once the business has stabilised
- Selling surplus equipment, stock or a property
- Trading cash flow over the term, once supply and sales are restored
Our guides to getting through a cash flow crisis and exit strategies are worth reading before you call.
What to have ready
- A list of the debts or pressures you need to clear, with deadlines
- Details of the property you can offer as security and any existing mortgage
- ID for borrowers and guarantors
- Your plan for repaying the loan
We do not order a valuation before approval. You are not pulled away from the business to meet a valuer at a time when the business needs you most.
How fast it can move
Conditional approval can often be given on the phone and a term sheet issued in about 30 minutes once we have the scenario. Eligible loans can settle in as little as 24 hours. There is no credit committee: the person you speak to is often the person who decides. We never guarantee approval or timing, but a quick first call costs nothing and tells you where you stand.
For example, a wholesaler whose main supplier has stopped supply over an overdue account, while two large customers are 60 days late, might use a three-month second mortgage over the family home to clear the supplier, restart orders and repay the loan as the customer payments arrive.
Specific crisis scenarios
If your pressure point is tax-related, our sibling pages cover ATO tax debts, director penalty notices, statutory demands and payroll in more detail. If the crisis is a delay rather than a shortfall, see insurance payout delays or large contract upfront costs.
Brokers
A client in crisis needs an answer today, not a list of documents. Send the scenario through our broker page for a fast indicative answer.
Act while it is still fixable
Call 1300 123 024 or apply online. If you would prefer to talk at a set time, schedule a call.
Business-purpose lending only. Approval, timing and terms depend on the scenario.
Frequently asked questions
My supplier has put us on stop-supply. Can you help quickly?
Will bad credit or defaults stop me getting a loan?
Do you need to see our recent financials?
Won't another loan just make things worse?
Can you pay creditors directly?
We're behind on our lease. Is that a business purpose?
Can I talk it through before applying?
Brokers: send the scenario through the Equity Tap broker channel and you will deal with the same lending team.