3 Ways SMEs Can Repay ATO Debt
At one point or another, otherwise healthy, thriving SMEs find themselves with ATO debt due to unforeseen circumstances. Even if they're meeting ATO payment plan obligations, they may be prevented from obtaining further lines of credit, limiting cashflow and inhibiting growth.
If you are in this situation, the experienced team at Classic Funding Group may be able to assist. We will work with you and take the time to understand your situation and requirements to propose a finance solution to payout your ATO debt and remove this impediment in seeking further lines of credit.
We often achieve this through a Sale-Back of their existing equipment, whereby you sell your eligible assets to us and lease them back on a term that suits your cashflow, using the funds raised to repay the ATO. Whilst these transactions are often more complex than a standard equipment finance arrangement and may take more time, you can be assured that the Classic team is eager to assist you and will delve into the detail to determine how we can assist.
Is Sale-Back a solution for you?
Where your business does not have suitable plant and machinery to use for a Sale-Back facility, a Confidential Debtor Finance facility may be a viable option. Also known as Invoice Discounting, Confidential Debtor Finance may be a good way to raise capital to repay the ATO arrears without taking on additional debt. Real estate security does not need to be provided as collateral and once the facility has been established, funds are generally available within 24 hours of uploading the debtors ledger to the online portal.
Is Debtor Finance a solution for you?
We often propose an Integrated Finance solution where a business has some equipment to use for a 'Sale-back' but not sufficient to raise the entire amount required to settle the ATO debt, but the business qualifies for a Debtor Finance facility. Combining a confidential debtor finance facility to release equity in the debtor ledger, whilst raising additional funds from available equipment through a sale-back facility is an effective way of raising required funds.
Is Integrated Finance a solution for you?
There are always exceptions and special circumstances that do not fit in a neat box, so if you need an alternate funding solution get in touch!