Transport operator refinancing an ATO debt to clear a payment arrangement

The situation

A family transport business running nine vehicles had accumulated $186,000 on its integrated client account after a difficult year losing a major contract. It was meeting an ATO payment arrangement but the instalments plus general interest charge were consuming the margin from new work, and the debt was blocking approval on two equipment purchases the business needed to service a replacement contract.

What we did

We obtained the current integrated client account statement and the arrangement letter, then modelled the real cost of staying on the arrangement against refinancing it. Three unsecured lenders were shortlisted on appetite for tax debt. We presented twelve months of bank statements showing the recovery in turnover after the new contract started, and were direct with the client that refinancing would extend the repayment period.

The outcome

A facility settled clearing the ATO balance in full and consolidating two small short-term loans, reducing the combined monthly outgoing by roughly $4,100. With the tax debt cleared, the business was subsequently able to secure equipment finance for the replacement contract. The refinance carried a higher rate than the arrangement's interest charge but a longer term and a predictable repayment.