Key takeaways
- •A deed of company arrangement is a binding arrangement between a company and its creditors, agreed after the company enters voluntary administration, that sets out how the company's affairs will be dealt with.
- •Most deeds of company arrangement involve money from outside the company. Between 2021 and 2025, 63% of approved deeds involved a contribution from a third party, and the median contribution was $264,000.
- •Once creditors vote for a deed of company arrangement, the company must sign it within 15 business days, unless the court allows longer. If it is not signed, the company goes into liquidation automatically.
- •Deeds of company arrangement that failed were much more likely to rely on the company's future trading profits than deeds that were completed, which is why a contribution paid as one sum is a common way to fund a deed.
- •Where an existing company, such as a holding company, makes the contribution to a deed, a short-term loan from $250,000, backed by property, can give that company the funds to pay it as one sum.
- •When a deed of company arrangement is complete, the directors usually regain control of the company, and the loan that funded the contribution is repaid through the exit agreed at the start, such as a property sale or a bank refinance.
A deed of company arrangement is a binding arrangement between a company and its creditors that sets out how the company's affairs will be dealt with, agreed after the company enters voluntary administration. Most deeds involve money from outside the company: the Australian Securities and Investments Commission found that 63% of approved deeds involved a contribution from a third party.
If you are proposing a deed and the contribution has to be found by a fixed date, we would be glad to help. A short-term private loan backed by property is a good fit for a contribution, because it pays the full amount as one sum on the date the deed sets, rather than over a year or more of trading. We lend our own funds, in most cases we decide in hours, and we can settle within 24 hours. If your contribution is coming from a company you or your family already own, that company can borrow against its own property or a director's home or investment property, and repay us through a defined exit, such as the sale of a property or a bank refinance.
Where the money for a deed usually comes from
The Commission's guide for creditors, Voluntary administration: A guide for creditors (Information Sheet 74), says a deed is usually proposed by a director or a third party, in consultation with the voluntary administrator, and is then run by a deed administrator, who is usually the person who was the administrator.
In July 2026 the Commission published Report 836, a review of companies that entered voluntary administration between 1 July 2021 and 30 June 2025. Its figures on where deed money came from:
- •935 of the approved deeds, or 63%, involved a third-party contribution.
- •The median third-party contribution was $264,000, and the average was $1,171,762.
- •Where a third-party contribution was made, it accounted on average for 86% of the estimated funds available under the deed. In almost half of appointments, a third-party contribution made up all of the deed fund.
The report does not say how contributors raised their money, only that it came from outside the company. Where the equity is in property and the cash is not, a loan backed by that property is one way to raise it.
The dates the contribution has to meet
A deed runs to a timetable set by the Corporations Act 2001, and the contribution has to be in place inside it. Information Sheet 74 sets out the steps:
| Step | When |
|---|---|
| Creditors' meeting that decides the company's future | Within 25 business days of the administrator's appointment, or 30 business days around Christmas or Easter, unless the court extends it |
| Company signs the deed | Within 15 business days of that meeting, unless the court allows longer. If it is not signed, the company goes into liquidation automatically |
| Contribution paid | On the date or dates the deed itself sets |
Report 836 found the median voluntary administration lasted 56 days where it led to a deed. Ask the administrator early when the contribution has to be paid, and what evidence of funding they need before creditors vote.
How a property-backed loan funds the contribution
During the administration, the company itself cannot raise the contribution on its own authority. Under section 437D, a transaction affecting the company's property is void unless the administrator enters into it, consents to it in writing first, or the court orders it, and Information Sheet 74 says the directors cannot use their powers while the company is in voluntary administration. A contribution under a deed is therefore usually paid by someone other than the company in administration.
We lend to companies, never to individuals. Where the contribution is made by a company that already exists, such as a holding company, another company you run, a company acting as trustee of a family trust, or a company buying the business, that company can be our borrower. The loan funds are paid to the borrowing company, which pays the contribution to the deed administrator as the deed requires. The deed proposal names who makes the contribution, so the borrowing company needs to match it.
| Loan feature | Detail |
|---|---|
| Borrower | The company making the contribution |
| Loan size | From $250,000, with larger loans assessed case by case |
| Interest rate | From 9.7% p.a., and from 11.95% p.a. for a second mortgage |
| Term | 1 to 24 months, typically 3 to 6 months |
| Security | A first or second mortgage over residential, commercial or industrial property: property the borrowing company owns, property held by an existing company or trust, or a director's home or investment property |
| Maximum loan-to-value ratio | 70%. On a second mortgage, 70% is the existing loan and ours combined. A second property can be added within the same 70% |
| Repayment | Through a defined exit agreed before settlement, such as the sale of a property or a bank refinance |
The Commission's median contribution of $264,000 sits just above our minimum loan size, and the average of $1,171,762 is well inside our range. Where the home already carries a bank loan, a second mortgage behind the existing loan leaves that loan in place.
The deed's success and the loan's repayment are separate questions, so the exit is agreed before settlement. Whether the company later repays the contributor, and on what terms, is a question for your accountant and solicitor.
Lump sum or trading profits: what the Commission found
Report 836 compared the 191 deeds that failed and went into liquidation with the 893 that were wholly effectuated, meaning their obligations were carried out. The failed deeds were less likely to involve a third-party contribution (50.3% against 68.4%) and much more likely to rely on operating profits (63.3% against 29.8%). The Commission explained the second finding this way: "when relying on operating profits, the funding is more uncertain as a DOCA may fail if the business does not perform as expected."
Time follows the same pattern. Among finalised deeds, the median deed ran for 248 days, and the Commission notes this understates the real figure because 27% of deeds were still running. The median was 362 days where the deed was funded from trading profits and 195 days where it was not.
These are associations across all deeds, not a promise about any one deed, but they show why a contribution paid as one sum is a common way to fund a deed.
While the deed runs
Under section 435C, the voluntary administration ends when the company and the deed administrator sign the deed, and a few rules then apply until the deed is complete:
- •Information Sheet 74 says the directors' powers depend on the deed's terms, so the deed administrator can tell you what you can sign for the company.
- •Under section 450E, every public document and negotiable instrument of the company must show the expression (subject to deed of company arrangement) after the company's name until the deed terminates, unless the court gives leave.
- •Under section 444D, a secured creditor can still deal with its security unless it voted for the deed and the deed provides otherwise, or the court orders it.
- •A deed does not stop a creditor who holds your personal guarantee from acting on it, so the guarantee needs its own plan.
- •If the deed has been, or is likely to be, materially breached, a director must tell the deed administrator.
If the deed fails after the contribution is paid, what happens to that money is a legal question. We are a lender, not an administrator or an insolvency practitioner, and we do not advise on the deed, the size of the contribution or what happens if the deed fails. The administrator and your solicitor are the people to ask.
When the deed is complete
Information Sheet 74 is clear on control: "When the DOCA is completed, the directors regain full control of the company, unless the DOCA provides for the company to go into liquidation on completion." Report 836 found that control returned to the directors in around 76% of deeds, and in 88% where there was no sale and the business kept trading.
At that point the company no longer needs that expression on its documents, and the contribution loan is repaid through the exit agreed at the start. Once the directors are back in control, the company itself can borrow again. If it still owes a lender that kept its security, our debt restructuring loans can give it the funds to pay that lender out.
Frequently asked questions
Can my home back the loan for the contribution?
Yes, where the borrower is a company. A director's home or investment property can secure a loan to an existing company that is making the contribution, by a first or second mortgage over residential, commercial or industrial property, within a 70% maximum loan-to-value ratio.
Who is the borrower: me or the company in administration?
We lend to companies, not to individuals. Where an existing company, such as a holding company, a related company or a buyer, is making the contribution, that company can be the borrower. We need to learn your scenario further before we confirm the structure.
Does signing the deed protect my personal guarantee?
No. The Commission says a deed does not prevent a creditor holding a personal guarantee from acting on it. Ask your solicitor how the deed affects your guarantee.
What happens to the contribution if the deed fails?
That is a question for the deed administrator and your solicitor. Under section 445H, ending a deed does not affect what was already done under it. The contribution loan is repaid through the exit agreed at the start either way.
How Secured Lending Can Help
We would be glad to help you fund the contribution your deed depends on. Our loan gives the contributing company the funds to pay the contribution as one sum, on the date the deed sets, and that company then repays us through a defined exit, such as the sale of a property or a refinance with its bank. Our page on loans when a receiver or administrator is appointed covers the administration deadlines alongside the loan steps.
A private loan suits a deed because the dates are fixed and short. We lend our own funds and our in-house team values the property, so in most cases we decide in hours and can settle within 24 hours once terms are agreed.
We provide secured loans backed by real property. If you would like us to look at your situation, it helps to have these to hand:
- •The deed proposal or the signed deed, and the administrator's report if it has been issued.
- •The contribution amount and every date it is due.
- •The administrator's or deed administrator's contact details.
- •Which company will make the contribution.
- •The property address, who owns it, its estimated value and any loan already on it.
- •How the loan will be repaid, and roughly when.
You are welcome to call us on 1300 795 175 with the date the deed must be signed, or send the details through and we will come back to you. In most cases, we can tell you within hours whether we can help.
