Repay ATO Debt

At one point or another, otherwise healthy, thriving businesses find themselves with an ATO debt  due to unforeseen circumstances, such as a natural disaster affecting business operations, a major client going out of business or management buy-outs temporarily depleting cashflow.

Even if ATO payment plan obligations are being met, these businesses are often prevented from obtaining further lines of credit. This often limits access to funds and puts pressure on business cashflow and inhibits growth.

In these situations, our experienced team take the time to understand the circumstances to propose a finance solution that assists the business to payout their ATO debt and remove this impediment in seeking further lines of credit.

SALE-BACK 

We often achieve this through a Sale-Back of their existing equipment. 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 make the deal work and will delve into the detail to determine how we can assist.

Is Sale-Back a solution for you?

  • In business for a minimum of 2 years
  • ATO debt is not an ongoing issue & there is a reasonable explanation for why the debt occurred
  • The business is meeting all ATO payment plan obligations
  • Sufficient assets to satisfy the ATO debt 

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DEBTOR FINANCE 

Where the 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?

  • Sell on credit terms to businesses
  • Turnover of $1M or more
  • Borrowing requirements over $250K
  • ATO debt is not an ongoing issue & there is a reasonable explanation for why the debt occurred
  • The business is meeting all ATO payment plan obligations

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INTEGRATED FINANCE 

Where the 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, we often propose an Integrated Finance solution. 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?

  • In business for a minimum of 2 years
  • Sell on credit terms to businesses
  • Turnover of $1M or more
  • Borrowing requirements over $250K
  • ATO debt is not an ongoing issue & there is a reasonable explanation for why the debt occurred
  • The business is meeting all ATO payment plan obligations
  • Business owns assets but not enough to satisfy ATO debt

Enquire Now

 

There are always exceptions and special circumstances that do not fit in a neat box, so if you need an alternate funding solution, give us a call on 1300 780 895 to discuss.