I have tax debt. What are my funding options?

Often yes. Several lenders accept a formal ATO payment plan that is up to date, and some will refinance the tax debt itself into a longer facility. What they will not accept is an undisclosed debt that appears in a bank statement or a director's credit file.

The question is whether the business can service a new facility as well as its trading commitments. That is the first thing a broker checks.

A payment plan in place and paid on time reads as a managed liability. Lenders ask for the plan, the recent payment history and the current balance.

A debt with no plan, or a plan in arrears, reads as a cash-flow problem that the finance would only defer. Many lenders decline at that point; a few specialist lenders will look at it against strong security or a clear turnaround.

The size of the debt relative to turnover matters more than the size in dollars.

Refinancing a tax debt into a term facility can lower the monthly outgoing and replace the ATO's general interest charge with a lender's rate. Whether that is cheaper depends on the rate, the term and the fees, so we compare the total cost over the term.

Where the business has equipment or property, a secured facility is usually cheaper than an unsecured one. Where it does not, unsecured facilities exist for established businesses at a higher price.

It cannot fix a business that cannot pay its debts as they fall due. If that is the position, speak with your accountant or a registered liquidator. We say so when we see it.

It also cannot remove the debt from a lender's view. Disclose it early. The path is shorter when nothing is discovered late.

The ATO payment plan and recent payment history. Recent BAS. Three to six months of business bank statements. Your accountant's contact, if you want us to work with them. Send an enquiry with what you have and we tell you which lender type fits before you chase anything else.