Last week one of our loyal brokers brought the following scenario to us…
His client had several business debts, including the following...
- $100K to a supplier, which meant they had a caveat on their property and their account had been put on hold
- $50K ATO debt
- Wages for the next month
- Two months arrears on their mortgage
- Plus they wanted an additional $50K for cash flow
The client is in this situation through no fault of their own, and because two of their clients had not paid them, it caused a snowball effect.
Fortunately for the client, they have equity in a piece of real estate, so we are able to consolidate their business debt, which includes the payment of their ATO debt, plus give them an additional $50K for cash flow.
The broker can now refinance the first mortgage and the HomeSec short term business loan into one low-interest rate home loan. HomeSec Business Finance has also contacted all the client’s creditors to take the pressure off the client and the broker.
In addition, the entire short term business loan is tax deductible because it’s a business debt. All we need now is a payout figure from the creditor, and we will be ready to rock!
Let’s hear it for consolidating business debts!