Funding the Unfundable: A $235,000 SBR Resolved Through Private Lending
The Situation
The client had been managing a complex tax debt for almost two years before it became clear that a Small Business Restructure was the most appropriate pathway forward. Working collaboratively, the client, their accountant, an insolvency practitioner, and SBR Assist each played an important role in shaping the outcome.
The Challenge
The approved SBR totalled $235,000. However, because the security property was owned by the company rather than the individual, conventional SBR funding was not available, with credit assessors identifying the transaction as falling outside standard lending parameters.
The Solution
To work through this, the team developed a coordinated strategy. A private lending facility was arranged to fund the SBR obligations, allowing the restructure to proceed without interruption. At the same time, work began on refinancing the client's existing first mortgage of $1.35 million, with pre-approval secured while the SBR was still being completed.
This forward planning meant that once the SBR was successfully finalised, the refinance was already in place and ready to settle. The SBR funding was repaid, the private facility was discharged, and the long-term refinance was completed in a smooth, sequential process.
The Outcome
The result was a holistic solution delivered through the combined efforts of the client, accountant, insolvency practitioner, and finance professionals. It addressed the immediate restructuring requirements while also providing a clear pathway to long-term financial stability, allowing the client to move forward with confidence.