Small Business Restructuring (SBR) Finance
SBR Finance provides the working capital to keep your business running during restructuring. Keep suppliers paid, staff supported, and operations stable while your restructure plan takes shape.
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What is SBR Funding?
SBR funding is a type of specialised finance that provides working capital to small businesses undergoing a formal Small Business Restructure. The restructuring itself helps cut down on and handle debts, but businesses still need money to keep doing business.
An SBR loan or SBR financing solution comes in here providing the working capital needed to pay suppliers, cover wages, and keep things running smoothly while the restructuring plan is being put into action.
Small Business Restructuring in Australia
The Small Business Restructuring (SBR) framework in Australia was put in place in 2021 as part of changes to the country’s insolvency laws. It is meant to give small businesses with debts of less than $1 million a way out of going out of business.
Unlike older insolvency processes, an SBR allows business owners to stay in control while a registered practitioner oversees the restructuring plan. This makes it a far more flexible and less disruptive option for businesses that still have the potential to recover and grow.
At Dark Horse Financial, we understand that small business owners don’t just need a legal framework, they also need financial support to make the restructure practical.
Will Lenders Provide Cash Flow Loans During Small Business Restructure?
specialist lenders see the potential in the Small Business Restructuring process and can provide funding.
Many lenders are willing to give loans or other short-term funding options if you have an approved restructuring plan.
We at Dark Horse Financial will help you find the right lenders who know how SBR works and can give you the funding you need.
How Does SBR Funding Support Restructuring Plans?
SBR funding is designed to give your business the breathing room it needs during restructuring. It can:
- Provide immediate liquidity to stabilise operations
- Fund obligations that are not part of the restructure (like ongoing wages or rent)
- Ensure suppliers continue to trade with your business
- Build confidence with stakeholders by showing your business has financial backing
- Allow you to implement your restructuring plan without sacrificing day-to-day performance
With SBR finance, you’re not forced into a corner where survival comes at the cost of growth. Instead, you gain the support needed to move through the restructure successfully.
Types of Finance Available During Small Business Restructure
Every business facing a restructure has different financial pressures. Depending on your needs, there are several finance options that can be used alongside an SBR plan to provide cash flow and stability:
Invoice Finance: If your business has money tied up in unpaid invoices, invoice finance can unlock that cash quickly. Instead of waiting 30, 60, or even 90 days for customers to pay, you can access funds almost immediately. This can be especially useful for businesses in industries where long payment terms are standard and cash flow is tight.
Lines of Credit: A business line of credit gives you flexible access to funds when you need them. During a restructure, this can be an effective way to manage working capital and smooth out cash flow gaps. You only draw down what you need, and interest is charged on the amount you use, making it a practical option for covering unexpected costs.
Capital Raises Against Assets: For businesses with significant assets, such as property, equipment, or vehicles, raising capital against those assets can provide much needed funds. This type of finance can help cover essential expenses during the restructure, pay down pressing debts, or provide the runway needed to execute your restructuring plan successfully.
Who Qualifies for SBR Funding and Loans?
Businesses generally qualify if they:
- Are undertaking a formal Small Business Restructure with a registered restructuring practitioner
- Have total debts of less than $1 million
- Operate as a company (not as a sole trader or partnership)
Demonstrate a viable path forward with the restructure in place - Can demonstrate capacity to repay a loan or line of credit
Even if you’re not sure whether you meet all the criteria, speaking with our team can help clarify your options.
How Dark Horse Financial Supports Small Business Restructure
At Dark Horse Financial, we:
- Provide access to lenders who understand SBR loans and restructuring finance
- Help you secure working capital during your restructure
- Support you in maintaining cash flow so you can keep trading confidently
Offer guidance tailored to your business’s unique situation - Help you find lending with the best rates and terms possible
- Support your business as it recovers and evolves
Take the next step
If your business is considering or already going through the Small Business Restructuring (SBR) process, the right finance can make all the difference. Here’s how to get started:
- Fill out our online form to apply for SBR Finance. We’ll get back to you shortly for an assessment of your current financial position and borrowing needs.
- Once you agree on a product and lender, we submit your application on your behalf and ensure you get funding when you need it.
- Once the lender approves your application, the funds will be disbursed or a credit limit will be made available to you. Use the funds as needed and set your business towards financial recovery.
SBR finance FAQs
No. Restructuring is designed to save the business and allow it to continue trading, whereas a liquidation is the process of closing down and selling off assets.
The formal SBR process typically takes around 35 business days once a restructuring plan is proposed. Finance can be arranged much quicker to support operations in the meantime.
Yes. Businesses can access working capital solutions such as invoice finance, lines of credit, or asset-based lending while undergoing restructuring.
Specialist lenders often provide cash flow loans to businesses with an approved restructuring plan. These loans are tailored to help businesses stay afloat during SBR.
Options include invoice finance, business lines of credit, and raising capital against assets. Each option provides flexibility to support cash flow during the restructure.
Yes. SBR loans can be used to settle outstanding debts or manage creditor payments, creating breathing room and allowing the business to focus on trading.
Yes. Businesses with property, equipment, or other assets can raise capital against them to support cash flow and fund operations during a restructure.
Many suppliers are willing to continue trading when they see that a business has an approved restructuring plan and funding in place to support ongoing payments.