When payment plan instalments fall due at the same time as BAS and PAYG it can create a significant cash flow burden for business owners.
This is especially true at this time of the year when many business owners are eyeing off the Christmas shutdown period and feeling concerned about running out of working capital through the holidays.
Our case study client has been following us on LinkedIn and reached out to talk through their circumstances.
They had revenue from invoices due but needed all of their customers to pay perfectly to have enough cash on hand to pay BAS and their payment plan.
Rather than getting a tax debt loan we suggested they could consider an unsecured overdraft with no establishment fees, no line fees and no management fees as a backup solution to give them peace of mind and support in the event not all of their customers paid perfectly.
Tax debt loans can be a godsend but many businesses feeling the pinch around their payment plan don’t necessarily need a tax debt loan for the whole amount.
Because this unsecured overdraft doesn’t have the fees that many lines of credit come with, this line of credit can sit in the background costing you nothing until you need it.
Interest is charged only on funds drawn.
Demonstrating a cautious and mature approach to debt, the business owner thought about it for a day and then asked us to place the application.
No documents were required as the assessment was completed with a read only view of business bank account statements, which made the process fast and easy.
When the approval came through, loan documents were available immediately and funds available as soon as signing was complete.
The business owner was very grateful for having the line of credit in place and we’ll follow up with them over the next few days to cover off any questions they may have about using their facility.
Need support meeting your ATO payment plan and surviving the Christmas shutdown?
Get in touch.
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