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Case Study: From $528,000 ATO Debt to a Business Back on Its Feet

Overview
SBR Assist helped a civil infrastructure business restructure its ATO liability, raise capital through a private lending facility, and complete a Small Business Restructuring while mainstream lenders declined to assist.
Background
The clients operate in the civil infrastructure industry and own their home in Koo Wee Rup, Victoria. During the COVID-19 pandemic, their sole client entered administration, leaving approximately $250,000 in unpaid invoices outstanding. The impact on business cash flow was severe and sustained. Despite the business difficulties, the clients' personal credit profile remained clean with no adverse history recorded. However, the company credit file carried a significant ATO default, which effectively closed the door on any mainstream lending options.
The Challenge
The clients needed to refinance their owner-occupied property and raise $250,000 to fund a Small Business Restructuring. In practice, the combination of factors made it a scenario that most lenders would not consider. An ATO default of $528,000 was listed on the company credit file, immediately disqualifying the clients from mainstream lenders. The clients were also actively undertaking a Small Business Restructuring at the time of application, adding further complexity to an already sensitive credit position. Every mainstream lender approached declined to consider the scenario, leaving the clients without a clear path forward.
The Solution
SBR Assist identified a lending solution through its lending partner, Fundsnational. Rather than treating the SBR as a barrier, the structure was built around it, using the refinance to fund the restructuring and enable a negotiated reduction of the ATO liability.Working with Fundsnational, a private lending facility was secured against the clients' owner-occupied property. Fundsnational specialises in complex lending scenarios outside the major banks and was able to assess the full picture, including the active SBR, rather than declining at the first sign of complexity. The existing mortgage of $575,129 was refinanced as part of the facility, consolidating the lending into a single arrangement. Capital of $250,000 was raised against the property to fund the SBR payout, giving the business the resources it needed to proceed. Through the restructuring plan, the ATO liability was then negotiated from $528,000 down to $250,000, a reduction of $278,000 and a significantly improved financial position for the business.
Key Figures
  • Funds raised: $250,000
  • Mortgage refinanced: $575,129
  • ATO debt (original): $528,000
  • ATO debt (post-SBR): $250,000
  • Total debt reduction: $278,000
  • Personal credit impact: None
Outcomes
  • ATO debt reduced from $528,000 to $250,000, a saving of $278,000
  • Small Business Restructuring completed successfully
  • Business operating on stable financial footing
  • Existing mortgage refinanced and consolidated through Fundsnational
  • Personal credit profile remained clean throughout the entire processcommunication and coordination throughout the liquidation and transition process to help reduce stress and provide clarity for the client