Using Private Lending to Resolve Urgent ATO Tax Debt in the Northern Beaches
- Innovate Funding
- Apr 7
- 4 min read
Over $50 billion. That's the staggering total of collectible tax debt currently owed to the Australian Taxation Office (ATO). This isn't just a statistic for business owners across Australia—particularly in high-growth regions like Sydney's Northern Beaches—it's a daily pressure point.
When the ATO demands payment and traditional banks are too slow or unwilling to assist, private lending can offer a timely and practical solution. At Innovate Funding, we recently facilitated a $350,000 first mortgage loan at just 14% LVR and 8.75% interest, specifically to clear a client's urgent ATO liability.
This was not a standard long-term loan. It was a short-term, three-month capitalised loan—designed for flexibility, executed quickly, and tailored to the client's unique financial situation.
This article explains how this solution worked, why it was effective, and how businesses in the Northern Beaches can leverage private lending to navigate financial challenges like ATO debt.

About Innovate Funding
Innovate Funding is a private lending specialist offering fast, flexible finance backed by real property. We focus on helping business owners, investors, and developers access capital outside traditional bank channels—especially when timing is critical.
Our lending services are designed to be transparent, efficient, and tailored to each client's needs. We work across a range of sectors but have developed strong expertise and a growing footprint in the Northern Beaches of Sydney, including suburbs like Manly, Brookvale, Dee Why, and Mona Vale.
We collaborate with borrowers directly, as well as through brokers, accountants, and legal professionals, to deliver solutions when other lenders cannot.
Case Study: Resolving ATO Debt with a $350K Private Loan
The Challenge
A Northern Beaches business owner faced a serious challenge: an urgent ATO tax debt with strict payment deadlines. The business was healthy, but their immediate cash flow was under pressure. Traditional bank finance was not an option due to the short time frame and the nature of the tax debt.
The Solution
Innovate Funding was able to structure and settle a private loan in under five business days with the following terms:
Loan Amount: $350,000
Security: First mortgage over commercial property
LVR: 14%
Interest Rate: 8.75% per annum
Loan Term: 3 months
Repayments: Capitalised (no monthly repayments; all interest and fees are paid at the end of the term)
Purpose: To pay off urgent ATO debt
The Result
The client immediately settled their ATO liability, avoided additional penalties, and preserved their business operations. With the loan structured as a short-term bridge, the borrower had sufficient time to refinance the debt through a longer-term funding solution once their position stabilised.
Why Private Lending Works for ATO Debt
Speed of Settlement
One key advantage of private lending is the ability to settle quickly. Unlike traditional lenders, who may require weeks of documentation and assessment, private funding can often be approved and delivered within days. This is crucial when facing firm ATO deadlines.
Low Loan-to-Value Ratio (LVR)
In this case, the property's strong equity position allowed for a low LVR of just 14%. This reduced the lender's risk and enabled a highly competitive interest rate. Many property owners in the Northern Beaches have similar equity profiles, making them strong candidates for private lending.
Flexible Structuring
Capitalised interest allowed the borrower to avoid monthly repayments during the loan's term. This was particularly valuable while the business focused on stabilising cash flow and planning for the refinance.
Defined Exit Strategy
A key feature of this transaction was the borrower's clear exit plan. With a future refinance or asset sale on the horizon, a short-term, three-month loan provided the flexibility and breathing room they needed—without locking into a long-term commitment.
Why the Northern Beaches is a Hotspot for Private Lending
The Northern Beaches offers a unique mix of strong property values, active commercial sectors, and increasing demand for alternative finance. Despite this, many borrowers in the region still struggle to secure timely funding through banks.
Private lending fills that gap by providing:
Fast, no-nonsense approvals
Access to capital based on property equity
Flexibility in loan terms
Competitive rates relative to risk
Suburbs like Freshwater, Narrabeen, and Warriewood continue to see active development and business growth, yet many borrowers are still caught between opportunity and funding constraints. Innovate Funding is helping bridge that divide.
Who Is Private Lending Suitable For?
Private loans are not just for distressed borrowers. They are ideal for:
Business owners need to clear urgent tax liabilities
Developers looking for bridging finance between stages
Investors who want to unlock equity without selling
Borrowers who require a fast turnaround but have strong property security
Clients with non-conforming credit histories or complex financials
If you have property equity but are facing tight deadlines or cash flow challenges, private lending could be the right solution.
Why Work with Innovate Funding?
At Innovate Funding, we pride ourselves on a personalised approach backed by deep industry experience. Here's what sets us apart:
Efficiency – Funding can be arranged in as little as 48–72 hours
Transparency – Clear loan terms, no hidden fees
Tailored Structuring – Every loan is built around the borrower's needs and exit strategy
Strong Local Knowledge – Deep understanding of the Northern Beaches property and business landscape
Trusted Relationships – We work closely with brokers, accountants, and legal teams to deliver outcomes smoothly
ATO Debt Doesn't Have to Derail Your Business
ATO liabilities can escalate quickly, but with the right finance solution, they don't have to become a long-term burden. Whether you're a business owner in Brookvale, a developer in Mona Vale, or an investor in Collaroy, private lending offers a powerful tool to address short-term cash needs without compromising long-term plans.
Innovate Funding helps you move quickly, strategically, and confidently—so you can focus on running your business, not managing debt stress.
Get in Touch
If you're based in the Northern Beaches and need fast, reliable private funding, we're here to help. Contact Innovate Funding Today: