A self-employed client came to Fundsnational facing a significant and time-critical financial crisis

Overview

A self-employed client came to Fundsnational facing a significant and time-critical financial crisis. The client had accumulated an $852,000 ATO tax debt and had received a formal wind-up notice, placing immediate pressure on the resolution timeline. Compounding the situation, the client held three residential properties with a combined mortgage balance of $554,000 — two of which had fallen into arrears totalling $22,000, with an additional $35,000 in outstanding council rates across the portfolio.

Total liabilities stood at $1,473,000 against a combined asset value of approximately $2,500,000, providing a workable equity position — but the complexity of the debt structure and the urgency of the ATO matter required a tailored private funding solution.

Deal at a Glance

The Challenge

The client’s situation presented several interconnected challenges that ruled out a conventional lending solution:

• An active wind-up notice from the ATO, requiring urgent resolution to prevent further legal escalation.
• Mortgage arrears across two of three properties, disqualifying the client from standard refinance products.
• Council rate arrears of $35,000 adding further complexity to the title and settlement process.
• A self-employed income profile that further limited access to mainstream credit during the debt resolution period.

The Solution

Fundsnational structured a private lending facility of $1,667,750 to simultaneously address all outstanding liabilities in a single, coordinated settlement. The facility was arranged on a 7-month prepaid interest basis, providing the client with a clear and cost-certain runway to stabilise their financial position without ongoing monthly servicing pressure.

The funds were deployed to clear the $852,000 ATO tax debt in full — extinguishing the wind-up notice — and to bring both mortgage accounts current, resolving the $22,000 in arrears. Council rate obligations of approximately $35,000 were also cleared as part of the settlement, removing all encumbrances across the portfolio.

With all debts cleared and the properties performing, the client was positioned to refinance into a conventional facility within the 12-month window — a pathway that had been mapped out and validated by Fundsnational at the outset of the engagement.

The Outcome

Within 12 months, the client successfully refinanced out of the private facility into a mainstream lending product. The result was a complete resolution of a multi-layered debt crisis — including a formal wind-up notice, mortgage arrears, and significant ATO exposure — all achieved without asset disposal and within a structured, pre-planned timeframe.

The 63% LVR at settlement provided adequate security coverage while preserving the client’s full property portfolio for the long term.