Funding for
Avoid liquidation
A creditor at the door — a statutory demand running its clock, a winding-up application filed, an ATO balance moving to enforcement — does not have to end the company. Where the business is viable and there is real equity in property the company or trust owns, that equity can be released in days to clear the pressure and hold the position while a refinance, a sale or recovering trade plays out. The harder, more important question is whether funding is the right answer at all.
Indicative only — subject to assessment. Placeholder figures.
When a creditor is at the door but the business is still viable
A statutory demand running its 21-day clock, a winding-up application filed, a supplier threatening to stop supply, an ATO balance moving to enforcement — these arrive with hard deadlines, and the bank can rarely restructure a facility inside them. Where the company or trust owns property with equity, that equity can be released to clear the immediate pressure, so a single solvable creditor does not take down an otherwise sound business.
How it works
A second mortgage sits behind your existing mortgage — there is no refinance of your first facility — and releases equity from property the company or trust already owns. Where the deadline is inside days, a caveat can be lodged faster again. The funds clear the creditor, and the facility is repaid when the planned exit lands: a refinance to longer-term finance, a sale settling, or trade recovering. Assessment is on the security and the exit, not full financials, so it can move at the speed the deadline needs.
When this works — and when to stop first
This suits a viable company facing a single, solvable creditor, with real equity and a credible exit. It does not suit a company that is insolvent or trading on without a viable plan. Borrowing to pay one creditor in a failing business rarely fixes the position — it can deepen the loss, and taking on new debt while insolvent can raise insolvent-trading and directors’-liability questions under section 588G of the Corporations Act. If that is the picture, the first conversation belongs with your accountant and a registered insolvency or restructuring practitioner: about protecting yourself while a credible plan is developed (the safe-harbour provisions exist for exactly this), a small business restructure, or voluntary administration if a turnaround is not realistic. Sometimes the honest answer is to deal with the position properly, not to fund one more month of it.
What we’ll need
The property and the rough equity, the creditor and the deadline, and the exit that repays the facility. That is enough to confirm whether this is the right move — or to tell you plainly that it is not.
- A viable company or trust facing a single, solvable creditor
- Real equity in property and a credible exit — refinance, sale or recovering trade
- A hard deadline the bank cannot restructure a facility to meet in time
- A company that is insolvent or trading on without a viable plan
- Anyone for whom new debt would only deepen the loss — get advice first
- Owner-occupier consumer borrowers (business-purpose only)
How it compares
FAQ
Can this stop a winding-up application?
It can clear the creditor behind the pressure where the company is viable and the funds settle in time, but it is not legal advice or a substitute for it. If an application is already on foot, speak to your accountant and a registered practitioner straight away.
What if the company is actually insolvent?
Then borrowing more is usually the wrong move. The first call is your accountant and a registered insolvency or restructuring practitioner — about the safe-harbour provisions, a small business restructure, or voluntary administration.
How fast can it settle?
Often within days once we have the security details, the creditor and the deadline, and a clear exit. A caveat can be the faster route where the deadline is inside days.
Do I need my first-mortgage holder's consent?
A registered second mortgage can require the holder of your first mortgage to agree a priority arrangement; a caveat often does not. We confirm the position for your security upfront.
What counts as a real exit?
Usually a refinance to longer-term finance, a sale settling, or trade recovering once the immediate pressure is cleared. We want to see a credible one before proceeding.
Tell us the pressure, the asset and the exit.
The amount, the asset and the timeframe. We’ll review and come back to you fast.
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