What payment plan term could I expect for my tax debt?
April 23, 2020Can my ATO payment plan be interest free?
April 23, 2020There are a number of different loan facilities available to pay a tax debt. Therefore, the various loan facilities may include:
- Traditional tax debt loans – where you would refinance your home loan and obtain additional money to pay the ATO debt.
- Additionally, second mortgage loans and caveat loans allow your existing home loan to remain. As a result, the new loan will be set up as an additional business loan behind your home loan.
- Business Loans secured against a vehicle; these loans can be great however they are limited to the equity available in your car.
- There is a range of business loans available, see below an overview or this business loans comparison to pay a tax debt.
- Supplier loans; as the ATO is viewed as a supplier you may obtain a supplier loan to pay the ATO debt. However, these supplier loans are best for loans that are paid off in no more than 6 months. Therefore, they may not be a suitable option if you are seeking a longer loan term.
- Unsecured business loans; these loans are not secured by the property. However, they usually have an option for a caveat or unregistered mortgage. Although, this may only be lodged in the event that the loan goes into default or payments are not made.
- Invoice factoring finance where you are able to obtain finance against unpaid invoices. However, you would need to ensure you had sufficient future revenue or working capital to meet your obligations. As you would forego the future business cash flow from that invoice.