Tax Debt

Situation

A property investor, asset-rich but cash-flow poor, had purchased a substantial property but lacked the funds to cover GST at settlement. With an outstanding ATO debt preventing them from accessing additional financing, they needed a solution within five days.

Solution

After reviewing the client’s position, we leveraged our NSW property portfolio to secure $2M through a combination of registered first and second mortgages.

Outcome

We settled the transaction in just four days, allowing the client to pay the GST, complete the property settlement, and receive a GST reimbursement to clear their debt. This ensured they maintained a strong credit profile and could continue securing funding without obstacles.

Situation

A client operating a highly successful exporting manufacturing business in Queensland approached NWC Finance with an urgent funding request. The client’s incoming mortgagee imposed a last-minute condition requiring the immediate repayment of a $1.2 million tax liability to the Australian Taxation Office (ATO).

Solution

NWC Finance promptly assessed and valued the client’s commercial assets, enabling the swift provision of funds through a second mortgage facility. The entire process, from initial enquiry to settlement ,was completed within 48 hours.

Outcome

The $1.2 million ATO debt was settled within 48 hours, enabling the primary loan to proceed. Without this repayment, the client faced liquidation and an inability to continue trading. By resolving the debt promptly, the client avoided operational disruption, secured necessary funding, and preserved a strong relationship with both the ATO and their lender.

Situation

A property investor with significant assets but limited cash flow was facing a critical five-day deadline to settle GST on a major acquisition. With an existing ATO debt preventing access to additional funding, a swift and strategic solution was essential.

Solution

We provided a short-term funding facility to cover the GST liability within the required five-day timeframe. This allowed the client to complete the acquisition without delay, despite the outstanding ATO debt. With the immediate pressure resolved, the client was then able to secure longer-term funding and proceed with their investment strategy.

Outcome

The client, a property-rich investor, experienced a temporary cash flow constraint at a critical time. We stepped in with timely funding, enabling the GST payment to be made on schedule. As a result, the client was able to secure the additional financing they required without delay.