ATO debt refinancing
Outstanding tax debt can restrict your business and your credit options. Refinancing it with a lender can consolidate repayments and give you a clear plan to clear it.
Common uses
Clear ATO debt
Pay out outstanding GST, PAYG, BAS or income tax.
Consolidate repayments
Replace an ATO payment plan with a single loan repayment.
Protect cash flow
Structure repayments around your trading cycle.
Secured or unsecured
Use property security or explore unsecured options for smaller amounts.
How lenders look at ATO debt
Lenders will refinance tax debt for businesses that are trading well. These are the questions a credit team asks first.
Why the debt arose
Growth, a large one-off bill or a timing issue is viewed very differently from ongoing losses. Lenders want a short, clear explanation.
Lodgements
Tax returns and BAS should be lodged and up to date. Outstanding lodgements are often the first thing to fix.
Current trading
Recent bank statements and BAS need to show the business can meet new repayments as well as its ongoing tax.
History with the ATO
A payment plan that has been kept to helps. Defaulted plans or garnishee notices need explaining.
Security available
Property security usually gives a lower rate and a longer term than unsecured options. Unsecured options suit smaller amounts.
A plan for future tax
Lenders want to see how the business will avoid new tax debt, such as setting aside GST and PAYG each month.
Four steps, one point of contact
Tell us the plan
What you are trying to do and the approximate amount.
Get a straight answer
Whether it is fundable and which lenders suit it.
Compare the options
Rates, structure, fees and conditions side by side.
Through to settlement
Application prepared, submitted and managed.
Fix these first
These are the issues that most often slow an application down, and what to do about each one.
- Lodgements outstanding
Lodge every overdue return and BAS with your accountant first. Most lenders won’t proceed until they are up to date.
- No current ATO statement
Download an up-to-date integrated client account statement so the exact debt is clear.
- Ignoring ATO letters
Respond to the ATO and set up a payment plan if you can. Engaging with the ATO matters to lenders too.
- Tax debt on your credit file
Check your business credit file. Reported tax debt affects approvals so lenders need to know about it upfront.
- No cash flow plan
Work out how GST, PAYG and super will be paid going forward so new debt doesn’t build up again.
Can I get a loan if I owe the ATO?
Yes. Several lenders specialise in refinancing tax debt, provided lodgements are up to date and the business is trading.
Is it better than an ATO payment plan?
It depends on the amount, interest and your cash flow. We will compare both so you can decide.
Will tax debt affect my credit file?
Significant overdue tax debts may be reported to credit bureaus. Addressing it early keeps more options open.
Tell us what you need.
No documents needed to start. Call (02) 7822 0255 or 0481 877 727, or answer a few quick questions.