Business debt consolidation — one loan, no repayments for six months

Business debt consolidation replaces several debts — an ATO balance, daily-debit cashflow loans, a called facility, overdue suppliers — with one loan secured by property, paid to the creditors directly on settlement. HomeSec lends $20,000 to $5,000,000 for this purpose with no repayments for up to 6 months, assessed on the property and the exit rather than on the accounts, and funded in as little as 24 hours.

What consolidation fixes, and what it doesn't

Business debt help is a phrase that covers a lot of bad advice, so here is the honest version first. Consolidation does not reduce what you owe. It changes who you owe it to and on what terms — and when the new terms are one lender, secured by property, with no repayments for six months, that change is often the difference between a business that trades through and one that does not.

It fixes: too many payment dates

Six creditors on six schedules become one loan with no repayments for up to six months. The business gets a quarter to trade without a debit hitting every morning.

It fixes: the ATO's interest and enforcement

Paid direct to the ATO on settlement. The interest clock stops, the payment plan is closed rather than defaulted, and the director penalty risk is removed.

It fixes: expensive money

Daily-debit cashflow loans and called facilities are replaced by one loan priced against property rather than against risk.

It does not fix: a business losing money on every job

If revenue is structurally below cost, consolidating the debts makes them cheaper and quieter and does not make them go away. We decline these files, and we say so early.

It does not fix: the habit that built the debts

A consolidated business with no plan for the next quarter is a business that will consolidate again. The exit — what repays this loan — has to be real.

Which debts to clear first

When the available equity covers some of the debts but not all, order matters. This is the order we recommend on the call, and the reason for each.

1. 1
   The ATOInterest at 11.43% compounding daily, no longer tax-deductible, and enforcement tools — garnishee, director penalty notice — that no trade creditor has. First, always.
2. 2
   Superannuation guaranteeUnpaid super becomes a personal liability of the director through the same director penalty regime as PAYG. Second.
3. 3
   A lender that has called the loan or is about toA called facility, a default notice, a fixed-term loan at maturity. Paying it out stops the enforcement clock.
4. 4
   Daily-debit cashflow loansThe most expensive money on the list and the one doing the most damage to the bank account every morning. Consolidating these into a capitalised secured loan is usually the single biggest cashflow improvement available.
5. 5
   Suppliers with credit holdsThe ones stopping the business from trading. Cleared in the order that reopens supply.
6. 6
   Suppliers who are waitingLast — and often the ones a conversation can stretch, once the ATO and the lenders are dealt with.

ATO figures for the quarter beginning 1 July 2026, checked 2026-09-10. They move quarterly.

Why the ATO comes first

A trade creditor can stop supplying you. The ATO can take the money out of your bank account without asking, through a garnishee notice, and can make a company's PAYG and super debts the director's personal debts through a director penalty notice. Its interest runs at 11.43%, compounds daily, and has not been tax-deductible since 1 July 2025. A payment plan looks like a solution until one instalment is missed, at which point the whole balance is due and the ATO's tone changes. Paying it out in full, direct from settlement, ends all of that on one day. The tax debt pages deal with each ATO situation in detail.

How a consolidation settles

On settlement day our solicitor pays each creditor you have nominated directly — the ATO balance, the lender's payout figure, the suppliers on credit hold — and the remainder goes to the business's account. You receive a settlement statement showing every payment. From that day the business owes HomeSec, and for the next six months, if the interest is capitalised, it owes nothing on any date.

From the call to the money

Have the list of debts — who, how much, and whether any has a date attached — for the first call. It is the one extra thing a consolidation needs, and it is the thing that lets a credit manager tell you on the call whether the equity covers it.

The line we will not cross

Every application is read by a Lending Manager and every credit decision is signed off by a person. We do not use artificial intelligence to assess, approve, decline or price a loan. And the decision that person makes most often on a consolidation file is whether the problem is timing or solvency. A business whose debts come from a bad quarter, a slow payer or a growth spurt is a timing problem, and consolidation is the right tool. A business whose revenue is structurally below its costs is a solvency problem, and consolidating its debts against the family home makes the eventual outcome larger, not smaller. We decline those files. We would rather tell you in the first ten minutes, and tell you who to call instead.

What it costs

Priced per file. No rate is published, because a rate with "from" in front of it is the best file's number. How it is priced, and every fee that exists.

Reviewed by Catriona Anderson, General Manager