Dealing with Australian Tax Office (ATO) debt can severely impact a business’s cash flow and daily operations. Finding effective solutions to repay this debt while maintaining working capital is crucial for businesses of all sizes. 

challenges of ATO debt

Recent data reveals that small and medium-sized businesses owe a substantial $33 billion out of the total $50.2 billion owed to the ATO in the last four years. With the ATO adopting a more proactive approach to debt collection, businesses are facing stricter criteria, tighter payment plans, court actions, and credit rating implications.

ATO debt consequences

The consequences of delayed ATO debt repayment include interest charges, potential exemptions reduction, negative credit impact, and diminished access to tax refunds.

invoice finance as a solution

Invoice Finance emerges as a fast, flexible, and effective funding solution for businesses aiming to settle ATO debt sustainably. This financial facility allows businesses to use outstanding invoices as collateral, securing a loan of up to 95% of their value.

benefits of invoice finance

Approval in 24-48 hours: Invoice Finance can be approved promptly, addressing ATO debt with urgency.

Control and Independence: Compared to traditional finance, it offers businesses more control over accessing working capital.

Eligibility and Flexibility: The application process is straightforward, providing a flexible alternative to traditional credit options.

Emergency Funding: Invoice Finance allows businesses to access emergency funding within 24 hours.

managing ATO debt

Understanding the consequences of ATO debt, including interest charges, credit implications, and reduced tax refunds, emphasizes the importance of timely repayment. Businesses can consolidate debt or opt for Invoice Finance to navigate ATO repayment efficiently.

how to use invoice finance to repay ATO debt

Invoice Finance hinges on the value of your invoices. The higher the value of outstanding invoices, the more working capital becomes available. It’s like getting cash upfront, especially when settled invoices provide an immediate boost to cash flow.

This working capital plays a crucial role in promptly meeting ATO repayment obligations, avoiding the standard 30-day wait for invoice settlements. Bypassing this delay helps your business steer clear of accumulating ATO debt interest and confronting negative credit implications, safeguarding long-term financial stability.

Invoice Finance brings a level of flexibility and control that empowers your business to grow and scale smoothly without being bogged down by ATO debt or other financial liabilities. This proactive approach ensures your business remains agile and resilient in the face of financial challenges.

nova – your reliable, dependable financial ally

Get access to working capital in outstanding invoices and address ATO debt with Nova, Australia’s most reliable non-bank lender. With over 20 years’ experience, Nova offers fast, flexible, and seamless invoice finance solutions for businesses of all sizes.

contact us

Connect with Nova today for a chat with lending specialists. Break free from ATO debt constraints and empower your business with the right financial solutions.


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