Finance question
Can I get finance if the ATO has issued a statutory demand?
Often yes, if there is property equity and you act within the window. A statutory demand gives your company a short period, usually 21 days, to pay before it is presumed insolvent, so paying the debt out with a property-backed facility inside that window removes the trigger. It is urgent and subject to lender assessment.
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The short answer
Clear the debt inside the window and the demand falls away
A statutory demand is a formal step before wind-up action. It gives your company a short, fixed period, usually 21 days, to pay the debt or reach an arrangement. If that window passes without action, the company can be presumed insolvent, which opens the door to a wind-up application. The clock is the whole point, so it is treated as an emergency from the first call.
The way through is to pay the debt out before the deadline. If you hold equity in a residential or commercial property, a facility secured against it can clear the ATO balance in a single payment inside the window. Once the debt is settled the demand has nothing to enforce, and the company avoids the slide toward insolvency.
Property security is what makes fast action realistic. Because real estate carries the deal, many of these payouts proceed without up-to-date financials and at single-digit rates. The sooner you start, the more room there is to settle cleanly before the statutory period runs out.
Do you qualify?
What makes an urgent payout fundable.
Property equity
Residential or commercial, with room to secure against.
Time in the window
Days still left on the statutory period to act within.
A known debt figure
The demand amount to be cleared in one payout.
An active ABN
The company is still trading and solvent.
Why a payout answers a statutory demand
It removes the trigger
Paying the debt inside the window stops the presumption of insolvency.
Property makes it fast
Equity secures the payout, so it can move on an emergency timeline.
Avoids the wind-up path
Clearing the demand keeps the company off the road to liquidation.
A real example
A wholesaler is served an ATO statutory demand for $110k with the clock already running. The director holds good equity in a rental property. A facility secured against that equity clears the debt inside the window, the demand is satisfied and the company keeps trading. Illustrative only, subject to valuation and timing.
Common questions
Frequently asked questions
How long do I have to respond?
A statutory demand usually gives a short fixed period, commonly 21 days, so acting immediately is what keeps the payout option open.
Does paying the debt end the demand?
Yes. Clearing the debt inside the window removes the trigger, so the company is not presumed insolvent and avoids wind-up action.
Can this really be arranged in time?
Often, if you start early. Property security lets many payouts move fast, though the outcome depends on timing and lender assessment.
Do I need financials?
For many property-backed deals, no. Enough equity behind the payout can carry it without up-to-date financials.