Business tax debt funding: what should a company prepare?
Where a business is considering third-party finance to address eligible tax liabilities, preparation can make the commercial discussion clearer and faster.
1. Understand the liability
Prepare current ATO account information, any payment-plan details and a clear breakdown of the business liabilities being addressed. Do not send TFNs or passwords through ordinary website forms.
2. Show the operating business
Recent financial statements, management accounts, bank statements, BAS information and aged receivables/payables can help explain whether the underlying business is viable and how cash moves through it.
3. Explain the repayment source
A lender will normally want to understand how the proposed facility is expected to be serviced or repaid from future business cash flow or another credible commercial source.
4. Map existing finance and security
Existing loans, equipment finance and registered security interests can affect the structure of any new facility.
General information only. This guide is not tax, legal or financial advice and does not mean SME Capital Partners is currently offering credit.