Quick summary:

Loan amount: $300,000 second mortgage
Loan type: Second mortgage on investment property
Problem: Profitable business burdened by sudden tax debt and mismanagement
Solution: Fast $300,000 capital injection through a second mortgage to support SBRP and creditor payments

When a profitable business came under pressure from rising tax debts and poor management decisions, a second mortgage provided the crucial funding needed to turn things around.

The business had a strong client base and steady revenue. But a recent change in management created major financial setbacks. The new General Manager neglected important obligations, leading to unpaid tax bills and mounting trade debts. Very quickly, the situation escalated, and the business owner faced the risk of insolvency, despite the company being fundamentally sound.

In cases like this, many business owners feel stuck. Traditional banks often won’t extend credit when tax debts are outstanding, leaving owners with limited options. But this business didn’t need long-term financing, it needed urgent capital to stabilise cash flow and give breathing space for a Small Business Restructuring Plan (SBRP) to be implemented.

Second Mortgage: A Practical Solution for Restructuring

This is where Bridging Loans stepped in. After reviewing the financials and restructuring strategy, we identified a clear pathway: a $300,000 second mortgage secured against an investment property owned by the director.

The funding was approved and settled quickly. The loan served two purposes: firstly, to pay down a significant portion of the ATO debt, showing a genuine commitment to the restructuring process. Secondly, to inject working capital back into the business so it could meet urgent obligations and continue trading while the restructuring plan took effect.

The advantage of a second mortgage in these scenarios is speed and flexibility. While banks focus on credit history and tax positions, we focus on the strength of the underlying business and available security. Our terms are designed to support short-term recovery, with an exit strategy aligned to the client’s restructuring plan.

Why Second Mortgages Can Change the Outcome in Restructuring

This case highlights why second mortgages are such a valuable tool in business rescue:

Fast access to funds: $300,000 approved and released within days, giving the business time-critical breathing space.
Security-backed lending: By securing against property, approval didn’t rely on day-to-day business performance.
Supports SBRP strategy: Funding was deployed in line with the restructuring plan, balancing debt repayments with operational stability.

Could a second mortgage provide the same breathing space for your business if you’re restructuring under ATO pressure?

A Call to Insolvency Practitioners and Business Advisors

At Bridging Loans, we work closely with accountants, restructuring practitioners, and insolvency advisors who are helping clients under pressure. When a business is viable but urgently needs capital, second mortgages are a fast and flexible option to support restructuring outcomes.

If your client has equity in property, even in an investment asset, that capital can be unlocked to resolve immediate financial stress. Our role is to provide funding quickly and constructively, helping businesses stabilise and move towards long-term recovery.

How We Can Help

At Bridging Loans, we act swiftly and with discretion to ensure funding is available when it matters most. If you’re supporting a business through restructuring, we’re ready to provide the practical finance needed to deliver results.

Bridging Loans are a short-term lending solution you can rely on. Our team is ready to help you.