The phone call starts with:
“I need this sorted urgently.”
The business owes the ATO:
$485,000.
There is pressure to deal with the debt.
The owner wants:
finance.
Quickly.
But there’s a problem.
They don’t know the exact ATO balance.
They can’t find the latest financial statements.
They have six different business loans but don’t know the payouts.
Their accountant has some of the information.
Their bookkeeper has the rest.
And when asked:
“How much finance do you actually need?”
the answer is:
“Whatever gets this sorted.”
Urgency is understandable.
But urgency without information can waste valuable time.
If your business has a substantial ATO debt and the situation has become urgent, the first thing to do isn’t necessarily to apply to as many lenders as possible.
It’s to get the financial position organised.
Because:
$485,000 of ATO debt is only one number.
To investigate an appropriate finance solution, we need to understand what sits around it.
The Albany Business
Imagine an established Albany business operating across transport, contracting, earthmoving and commercial services in southern Western Australia.
Trading history:
18 years.
Annual turnover:
approximately $8.6 million.
Employees:
35.
ATO debt:
approximately $485,000.
Existing business and asset finance:
approximately $1.1 million.
Debtors:
approximately $1.35 million.
The business is profitable.
There is substantial work underway.
But the owner has reached the point where the historical ATO position needs attention.
The first request is:
“Can you get me $500,000?”
Maybe.
But before discussing lenders, let’s establish what the:
$500,000
actually needs to do.
Step One: Find Out Exactly What You Owe
The owner says:
ATO debt:
$485,000.
Where did that figure come from?
Was it checked:
today?
Last week?
Last month?
Before the latest BAS?
Before a recent ATO payment?
Before additional amounts were applied?
We need the current position.
“About $485,000” Isn’t Necessarily Enough
Suppose finance is arranged for:
$485,000.
Then the amount required to deal with the ATO position turns out to be:
$512,000.
The transaction may no longer achieve what the owner expected.
That’s why the starting balance matters.
Don’t Round a Large Tax Debt Down Because the Finance Number Looks Better
If the actual liability is:
$512,000,
tell us:
$512,000.
Then we can investigate the transaction properly.
Step Two: Establish Whether Required Lodgements Are Current
This can materially affect the picture.
Suppose the known ATO debt is:
$485,000.
But:
one BAS remains outstanding.
The owner expects:
another $45,000
may become payable.
Potential total position:
approximately $530,000.
That’s a different funding requirement.
What If Several Lodgements Are Outstanding?
Then the uncertainty can be larger.
Your accountant or tax adviser may need to help establish:
what has been lodged,
what remains outstanding,
and the likely tax position.
Don’t guess.
Step Three: Tell Us Whether There Is an ATO Payment Arrangement
If there is, provide the details.
Current ATO balance:
$485,000.
Regular payment:
perhaps weekly,
fortnightly,
or monthly.
Is the arrangement:
current?
In arrears?
Recently changed?
Has the business missed payments?
These details help us understand:
the urgency
and
current cash commitment.
Urgent Doesn’t Mean the Same Thing for Every Business
Business A says:
“It’s urgent.”
What they mean:
“I don’t like carrying the debt and want it dealt with.”
Business B says:
“It’s urgent.”
What they mean:
“The current arrangement is becoming difficult to maintain.”
Business C says:
“It’s urgent.”
What they mean:
“Formal recovery action is occurring.”
Those are very different situations.
Tell Us What “Urgent” Means
Don’t simply say:
“The ATO is chasing me.”
Tell us what has actually happened.
If you’ve received:
correspondence,
notices,
demands,
or other formal communication,
make sure the appropriate professional advisers understand it.
Finance may be one part of the response, but urgent tax or legal matters may also require:
accounting,
tax,
legal,
or restructuring advice.
Step Four: Decide What You Want the Finance to Achieve
The owner asks for:
$500,000.
Purpose:
“ATO.”
But after discussing the business, we discover:
ATO:
$485,000.
Business credit cards:
$70,000.
Short-term working-capital loan:
$130,000.
Operating cash reserve:
too low.
Now the real question isn’t necessarily:
“Can we borrow $500,000?”
It may be:
“What should actually be restructured?”
Maybe $485,000 Is Enough
Perhaps the business can comfortably deal with everything else.
Then:
ATO only.
Simple.
Maybe $650,000 Makes More Commercial Sense
For example:
ATO:
$485,000.
Credit cards:
$65,000.
Genuine additional working capital:
$100,000.
Potential requirement:
$650,000.
That’s illustrative, not a recommendation.
But it shows why the finance amount should come from:
the problem,
not a round number.
Or Maybe the Business Only Needs $300,000
Suppose:
a major customer is due to pay:
$420,000
within two weeks.
After allowing for:
payroll,
suppliers,
and operating reserves,
the business could genuinely contribute:
$185,000
towards the ATO.
Potential remaining requirement:
approximately $300,000.
Again:
different transaction.
Step Five: Prepare a List of Every Existing Business Debt
Don’t rely on memory.
Create the list.
For each facility:
lender,
current balance or payout if available,
repayment,
repayment frequency,
remaining term if known,
and security.
Include Everything
Business loans.
Working-capital facilities.
Equipment finance.
Truck finance.
Vehicle finance.
Credit cards.
Overdrafts.
Property loans where relevant.
Short-term facilities.
Any other significant business borrowing.
The Albany Business Has $1.1 Million of Existing Finance
That sounds substantial.
But break it down.
Truck and trailer finance:
$380,000.
Earthmoving equipment:
$290,000.
Commercial vehicles:
$160,000.
Business working-capital facility:
$190,000.
Credit cards:
$80,000.
Total:
$1.1 million.
Now we can understand it.
A $1.1 Million Debt Balance Doesn’t Tell Us the Repayment Burden
Maybe most of the debt is:
productive asset finance
with appropriate terms.
Or maybe:
$400,000
is short-term debt with aggressive repayments.
Very different.
Step Six: Know Your Repayments
The lender needs to assess the business’s commitments.
We need to understand them too.
Don’t tell us:
“The truck loan is about $7,000.”
Is that:
weekly?
Fortnightly?
Monthly?
Exact frequency matters.
Weekly Repayments Can Look Small Until You Annualise Them
Example:
$4,000 per week.
Annual cash commitment:
approximately $208,000.
That gives a different perspective.
Step Seven: Get the Business Bank Statements Organised
Depending on lender and transaction, bank statements may be relevant.
They can help show:
customer receipts,
cash balances,
payroll,
existing loan repayments,
ATO payments,
supplier payments,
and account conduct.
Don’t Clean Up the Story
If there was:
a dishonour,
a difficult month,
a major unexpected repair,
or a customer paid late,
tell us what happened.
We need the real business.
Suppose Cash Fell to $20,000 in May
Why?
Maybe the business had to fund:
$240,000
of mobilisation costs for a new contract.
Then customer receipts caught up in June.
That’s useful context.
Or Maybe Cash Is Below $20,000 Every Month
Different issue.
Now the business may have a structural working-capital shortage.
Step Eight: Have Recent Financial Information Available
Depending on the proposed lender and facility, information may include:
financial statements,
tax returns,
BAS,
management accounts,
or other financial information.
Requirements vary.
What If the Latest Financial Statements Aren’t Finished?
Tell us.
Don’t wait silently for three weeks.
Maybe other information can be reviewed while the accountant completes them.
Or perhaps final financials are critical for the proposed transaction.
We can work out what is actually required.
Step Nine: Know Your Current Turnover
Last financial year:
$8.1 million.
Current annualised turnover:
approximately $8.6 million.
Good.
Explain which number you’re using.
Don’t Say “We’re Doing About $10 Million” If the Records Show $8.6 Million
Accuracy matters.
If:
$10 million
is forecast turnover because a new contract has commenced:
say that.
Historical:
$8.1 million.
Current annualised:
$8.6 million.
Forecast:
$10 million.
Now the numbers make sense.
Step Ten: Know Whether the Business Is Actually Profitable
Turnover:
$8.6 million.
Sounds impressive.
But what does the business retain?
Suppose operating profit:
approximately $870,000.
That tells us much more.
High Turnover Doesn’t Automatically Support High Debt
A business can turn over:
$10 million
and make:
almost nothing.
Another can turn over:
$5 million
and produce strong profit and cashflow.
Lenders don’t only look at:
revenue.
Step Eleven: Prepare the Debtor Ledger
For the Albany business:
debtors:
approximately $1.35 million.
That’s significant.
Break it down.
Current:
$520,000.
31 to 60 days:
$460,000.
61 to 90 days:
$250,000.
90+:
$120,000.
Now we can see the collection profile.
Tell Us About the Largest Customers
Largest customer:
$310,000 outstanding.
Second:
$225,000.
Third:
$170,000.
Are those invoices:
current?
Overdue?
Disputed?
Expected shortly?
That matters.
Why Does This Matter for ATO Finance?
Because perhaps the business’s tax problem is connected to:
slow-paying customers.
If so, clearing the historical ATO debt without fixing debtor timing could allow the problem to return.
Step Twelve: Identify Any Major Customer Payments Coming
The owner says:
“We’re getting $600,000 next month.”
Great.
From whom?
For what?
When?
How certain is it?
And how much of that money is already required for:
payroll,
suppliers,
and project costs?
Don’t Count the Same $600,000 Three Times
The owner mentally allocates it to:
ATO,
new excavator,
and
working capital.
It can’t do all three.
Step Thirteen: Prepare Details of Major Contracts
If future revenue is important to the finance story, have relevant information available.
For example:
new three-year contract.
Annual revenue:
approximately $2.2 million.
Mobilisation requirement:
$280,000.
Customer payment terms:
45 days.
This helps explain:
why the business needs cash
and
where future revenue may come from.
Step Fourteen: List the Assets the Business Owns
Depending on the transaction, business assets may matter.
Trucks.
Trailers.
Excavators.
Machinery.
Commercial property.
Other significant assets.
Know:
what is owned outright
and
what has finance attached.
Step Fifteen: If Property May Be Used, Get the Basics Ready
Property:
commercial premises.
Estimated value:
$2.4 million.
Existing mortgage:
$920,000.
Ownership:
company.
That’s useful.
If Residential Property Is Available but You Don’t Want to Use It, Say So
That’s equally useful.
Don’t wait until a structure is proposed and then say:
“I won’t use the house.”
Tell us the boundaries at the beginning.
Step Sixteen: Explain What Created the ATO Debt
The Albany owner initially says:
“COVID, growth, customers, everything really.”
That’s too broad.
Let’s narrow it down.
What Actually Happened?
Three years ago:
turnover:
$5.4 million.
Today:
$8.6 million.
Employees:
22 to 35.
Debtors:
$760,000 to $1.35 million.
Equipment purchased:
substantial.
Customer payment times:
increased.
Now we have:
a working-capital story.
Maybe the Cause Was Different
One customer failed owing:
$280,000.
Or:
a major project lost:
$350,000.
Or:
margins collapsed.
Or:
the business bought too much equipment from cash.
Tell us the actual cause.
Step Seventeen: Explain What Has Changed
This may be even more important.
Historical problem:
slow customer collection.
Change:
new credit-control process.
Historical problem:
underfunded growth.
Change:
future assets will be financed appropriately.
Historical problem:
unprofitable contract.
Change:
contract exited.
Historical problem:
poor tax provisioning.
Change:
separate tax reserve established.
Finance Is Stronger When the Cause Isn’t Simply Continuing
If nothing has changed:
why won’t the debt return?
That’s the question.
Step Eighteen: Work Out the Minimum Cash the Business Needs After Settlement
This is frequently overlooked.
Suppose finance pays:
the entire ATO balance.
Bank account afterwards:
$25,000.
Weekly payroll:
$105,000.
That’s not a comfortable position.
Don’t Use Every Dollar to Produce a Perfect Settlement-Day Screenshot
The business needs to operate:
the next day.
And:
the week after.
Maybe the Business Needs a $200,000 Operating Reserve
Then preserve it where commercially appropriate.
The exact requirement depends on:
business size,
payroll,
supplier commitments,
customer payment timing,
and volatility.
Step Nineteen: Build a Short-Term Cashflow Forecast
Thirteen weeks can be useful.
Show:
opening cash,
customer receipts,
payroll,
super,
suppliers,
ATO payments,
loan repayments,
and major expenses.
Now we can see:
where the pressure occurs.
Urgent Finance Without a Cashflow Forecast Can Miss the Real Amount
Owner asks:
$485,000.
Forecast shows:
after paying the ATO, the business still falls:
$140,000
short during contract mobilisation.
Now we know.
Step Twenty: Decide What Success Looks Like
This is the final preparation question.
What should the business look like:
six months after finance?
A Strong Answer
ATO historical balance:
resolved or under a sustainable strategy.
Current tax:
up to date.
Operating cash:
stable.
Existing productive asset finance:
performing.
No new emergency loans.
Debtors:
controlled.
Business:
profitable.
A Weak Answer
“The ATO stops calling.”
That’s important.
But not enough.
Don’t Apply Everywhere Because You’re Panicking
Urgency can make business owners think:
more applications
equals:
more chance of approval.
Not necessarily.
Multiple poorly prepared applications can create confusion and waste time.
Start by understanding:
the transaction.
One Clear Finance Story Is Better Than Five Different Versions
Lender one hears:
“ATO refinance.”
Lender two:
“working capital.”
Lender three:
“debt consolidation.”
Lender four:
“equipment purchase.”
Which one is it?
Maybe it’s a combination.
But the story should be consistent.
The Broker Needs the Bad News Too
If:
ATO arrangement has defaulted,
lodgements are outstanding,
customer is disputing a large invoice,
turnover has fallen,
or another lender recently declined the business:
tell us.
Hiding the Problem Doesn’t Improve the Problem
It delays the point where it has to be addressed.
What If You Don’t Have Everything Today?
That’s okay.
Start with what you do have.
At minimum, be ready to explain:
ATO balance,
ATO status,
turnover,
trading history,
finance amount,
purpose,
existing debt,
and what created the problem.
Then identify the missing pieces.
Create One Folder
ATO information.
Financials.
BAS.
Bank statements.
Existing finance.
Debtor ledger.
Contracts.
Property information if relevant.
Keep it organised.
When something is requested:
you know where it is.
Give Documents Clear Names
Instead of:
IMG_3847.pdf
use something understandable.
For example:
ATO Account August 2026.
Business Financials FY2026.
Debtor Ledger August 2026.
Equipment Finance Statement.
This sounds trivial.
When a transaction is urgent:
it saves time.
What If You Owe $500,000?
The same preparation applies.
In fact, the larger the transaction:
the more useful it is to have a clear picture before approaching finance.
What If You Owe $150,000?
Still do it.
The principle doesn’t change.
Know:
what you owe,
why,
what you can afford,
and what the proposed finance achieves.
Urgency Should Make You More Organised, Not Less
That’s the central point.
When the ATO debt feels urgent, there is a temptation to:
rush,
apply,
and hope.
A better first move is:
organise the facts.
If You Need to Deal With ATO Debt Urgently, Start With These Eight Things
Current ATO balance.
ATO arrangement details.
Lodgement position.
Latest business financial information.
Business bank statements.
Existing debt and repayments.
Debtor ledger.
Exact finance purpose.
Those eight items can tell us a lot.
Then Add the Context
Why did the debt arise?
What changed?
Is the business profitable?
Is it growing?
What major customer receipts are expected?
What major expenses are coming?
What assets or property may be relevant?
What does the business need to look like after settlement?
Finance Shouldn’t Only Buy Time
It should ideally help create:
a more sustainable financial position.
Otherwise:
the clock simply starts again.
If Your Business Owes the ATO $485,000 and You Need to Act, Don’t Start by Guessing Which Lender Will Say Yes
Start by getting the business position clear.
Tell Thrive Broking:
current ATO balance,
whether required lodgements are current,
whether there is an ATO payment arrangement,
annual turnover,
trading history,
profitability,
existing business debt,
cash available,
and the amount you believe you need.
Then provide:
debtor information,
major upcoming customer payments,
existing finance repayments,
and relevant business financial information.
If there are:
property assets,
major contracts,
or other important circumstances,
tell us those too.
From there, we can investigate whether:
ATO debt finance,
debt consolidation,
working-capital finance,
debtor finance,
property-secured finance,
or another commercial funding structure
may be appropriate.
Because when the business owes:
$485,000
to the ATO
and time matters,
the fastest route isn’t always:
“Apply immediately.”
Sometimes it’s:
“Spend the next hour getting the right information together so we know exactly what we’re trying to solve.”
Then the finance conversation can start properly.