Settling an estate or family arrangement and need to keep the business whole?

A hard time to be dealing with money

Estate and family settlements usually arrive at the worst possible moment. You may be grieving a parent who built the business with you, or working through a separation while trying to keep staff, customers and suppliers steady. At the same time, there are agreements to honour, deadlines to meet and other family members who need to be paid their share.

We understand that these conversations are personal. We keep them practical and private, focus on what needs to happen and when, and make sure you fully understand the loan, the costs and the exit before anything goes ahead.

Where business owners need funding

Our loans are for business purposes only. Within an estate or family settlement, that commonly includes:

• Paying out siblings or other beneficiaries for their share of a family business, so the business can continue under one owner.
• Keeping business premises that form part of an estate or settlement, where others need to be paid out to avoid selling the building the business trades from.
• Buying out a former partner's interest in a business or business property under a family settlement.
• Clearing business debts attached to an estate, such as tax or supplier balances, so the business can be transferred cleanly.
• Bridging the timing between a settlement payment being due and a business asset or property being sold.

Where funds are for personal or household purposes, our loans aren't the right fit.

Why banks struggle with these scenarios

Estates and settlements are complex. Ownership may be changing hands, the business's financials may have been disrupted, and a bank will typically want years of records, a credit check, a valuation and clarity on every party involved. A bank refinance commonly takes up to three months or more, and it may not approve the amount you need. Executors and other parties, meanwhile, want certainty on timing.

Equity Tap is a direct, independent private business lender. We lend our own money, 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. We handle difficult and complex scenarios that banks and cash flow lenders decline. We don't order a valuation before approval, and for a property-secured loan we don't need tax returns, BAS, profit and loss, an accountant's letter or bank statements.

Steps from first conversation to settlement

1. A quiet first call. Ring 1300 123 024 and tell us what has been agreed or ordered, the amount needed, the timing and the property available as security.
2. Conditional answer. Conditional approval can often be given on the phone, with a term sheet in about 30 minutes once we have the scenario.
3. Coordination. We work alongside your solicitor, the executor or the other party's representatives on documents and timing.
4. Settlement. Eligible loans can settle in as little as 24 hours once documents and consents are in place.
5. Exit. The loan is repaid through the agreed exit within the term.

Security and repayments

Security can be your own home, business premises or other property you hold. A second mortgage lets an existing loan stay where it is (the first lender's consent may be needed). Where property is passing to you through the estate or settlement, timing and title need care, and we'll talk through how that affects the structure.

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. Interest is not waived, but it gives you room while ownership settles and the business finds its footing.

Common exits

• A bank refinance once ownership has been transferred and the business is settled under its new structure.
• Sale of a property or asset received through the estate or settlement.
• Sale of surplus business equipment, stock or a division.
• An insurance payout, such as a key person or buy-sell policy, that will take time to be paid.
• Business cash flow where the amount is modest.

Read our exit strategy guide for how to plan this out.

For example

For example, after a parent passes away, three siblings inherit equal shares in the family transport business and its depot. One sibling runs the business and wants to keep it; the other two would prefer their share in cash. A short-term loan secured over the depot and the operating sibling's home pays the other two out on the agreed date. The sibling who keeps the business later refinances to a bank once the business and property are in their name.

Related situations

If the arrangement is with a business partner rather than family, see business partner buyout. If tax debts need clearing as part of the estate, see ATO tax debt loans. For releasing equity from property you already own, see equity release business loans.

Brokers

Estate and family settlement scenarios need patience and speed at once. Send them through our broker page and you'll deal with the same experienced team from first call to settlement.

Talk it through with us

We are business owners lending to business owners, and we have been lending for a long time. Each loan is priced on the client's individual circumstances, aiming for the sharpest rate available for that situation, with the full cost shown before you proceed. Apply online, schedule a call or ring 1300 123 024.

Business-purpose lending only. Approval, timing and terms depend on the scenario.

Frequently asked questions

Brokers: send the scenario through the Equity Tap broker channel and you will deal with the same lending team.