If you’ve received a Director Penalty Notice and need to move decisively, a second mortgage loan for Director penalties can give you the speed and certainty to protect your position and keep your business on track. At Secured Lending, we’ve advised and assisted borrowers facing a Director penalty notice before, and we have facilitated over 200 strategic second mortgages. If you need to act now, we can help you move fast with a second mortgage loan for Director penalties. Assess your scenario today.
What a Director Penalty Notice Means, in Plain English
A Director Penalty Notice (DPN) from the ATO can make you personally liable for certain company tax debts, commonly PAYG, GST, and superannuation. The key issue is time. You may have a short window to act to avoid personal liability or enforcement. If the notice timeframe expires, options narrow and pressure increases. Funding that lands quickly can remove risk, bring the ATO current, and give you room to reset your strategy.
Why a Second Mortgage is Often the Practical Answer
A second mortgage lets you access equity in property you already own without disturbing your first mortgage. Instead of a full refinance—which can be slow and bank-driven—you can use a targeted amount for a specific purpose: paying the DPN on time.
Benefits You Can Count On
- Speed and certainty: Fast assessment, same day settlement where possible, and funding within 24 hours when documentation and consents are ready. Designed for urgent settlement needs.
- Keeps your banking stable: No need to refinance your existing first mortgage or rework long-term facilities while the deadline ticks down.
- Purpose-built: Use the funds to pay the Director penalties promptly, reduce personal exposure, and calm ATO pressure.
- Preserves working capital: Keep trading cash in the business for payroll, inventory, projects, or commitments. Avoid draining operating accounts to meet an emergency liability.
- Flexible exit: Repay from refinance, asset sale, cash flow, or a combination. Treat it like a bridge around a time-sensitive problem—similar in spirit to bridging loans, but secured specifically as a second mortgage.
- Tailored terms: Secured business loans framed for short-term needs, with an interest rate of 11.95% depending on scenario and risk, and the ability to borrow up to $10 million subject to equity, serviceability, and exit plan.
Common Scenarios We Fund for DPNs
- You have sufficient property equity and a clear refinance path in 3–12 months.
- You’re selling a property or non-core asset and need a short runway to completion.
- Your bank is supportive long-term but cannot move at the pace a DPN requires.
- You want to protect personal position quickly while you finalise lodgements or restructure.
How We Structure a Second Mortgage for Director Penalties
Our process is built for clarity and momentum:
- Review and confirm: We review your DPN position, funding amount, property security, first mortgage details, and exit strategy. We keep it straightforward—no long forms or drawn-out committees.
- Indicative terms: We issue an outline with loan amount, pricing, fees, and timeline so you can make a decision quickly.
- Valuation and consent: We coordinate valuation (where needed) and first mortgagee consent to register a second mortgage. We liaise with your broker, accountant, or lawyer to compress timelines.
- Document and settle: We streamline documents and aim for same day settlement or funding within 24 hours once conditions are satisfied. The goal is to meet the DPN window without fuss.
- Post-settlement support: We stay close until your exit event—refinance, sale, or cash flow—so you’re not navigating it alone.
Security We Accept
We lend against residential or commercial property as collateral/security. That includes houses, apartments, warehouses, offices, and development sites. We don’t accept other obscure assets as collateral. Keeping security simple helps us move quickly and gives you cleaner terms.
Private Lender: National Coverage, Non-Bank Certainty
Secured Lending is a private lender in Australia and operates Australia wide: Sydney, Adelaide, Melbourne, Brisbane, Perth, Gold Coast, Canberra. As a non-bank lender, we make decisions in-house and move at the speed a Director Penalty Notice demands. If your file is strong, we can step in when bank processes are too slow for an urgent or emergency deadline.
What We Look For
- Sufficient equity to support a second mortgage behind your first lender
- Clear, time-bound exit strategy (refinance, property sale, or defined cash flows)
- A funding amount aligned to the DPN and any immediate ATO arrangements
- Cooperation from your first mortgagee for second mortgage consent
- Straightforward ownership and company structure so documents can be completed without delay
Timeline Guide You Can Plan Around
- Day 0: Scenario review and indicative terms
- Day 0–1: Valuation ordered, title and first mortgage details verified
- Day 1–3: Documents issued, first mortgagee consent coordinated
- Day 1–5: Settlement—often same day settlement or funding within 24 hours once conditions are met
Costs, Pricing, and Transparency
We keep pricing simple and disclosed up front. We’ll confirm total costs, fees, and interest before you proceed so you can weigh the benefit of resolving the DPN now against any alternatives. For many directors, the cost of delay—penalties, personal exposure, and lost time—far outweighs short-term funding costs.
Why This Approach Works for DPNs
- You act within the DPN window, lowering personal risk.
- You avoid a forced refinance or distressed sale.
- You maintain business momentum while the ATO is paid and communication stabilises.
- You buy time to complete any lodgements or restructure calmly.
How We Can Help
We’ve guided many directors through time-sensitive ATO situations and facilitated over 200 strategic second mortgages. Our role is to review your position, structure the right amount, coordinate consents, and settle quickly so you can focus on running the business. If you’re facing a Director penalty notice, we can provide a clear, outcome-first path to payment with minimal disruption. We have provided strategic lending advice for this in the past and can help assess your scenario.
Secured Lending is a short-term lending solution you can rely on. When you’re ready, our team is here to help you move quickly and confidently. Our team specialises in urgent short term loans solutions such as bridging finance, second mortgages, and caveat loans.
FAQs
1) Can you work with my existing bank in first position?
Yes. We regularly arrange second mortgage funding behind major banks. We coordinate consent and documentation to protect your first mortgage relationship while addressing the DPN.
2) What if my DPN is a “lockdown” notice?
We’re not providing legal advice, but where only payment clears personal liability, speed becomes critical. We can fund quickly so you can pay the debt and then complete any restructure or refinance on your timeline.
3) Will a second mortgage affect my ability to refinance later?
Not if it’s structured properly. We size the loan for short-term use, keep the purpose clean (paying the DPN), and plan your exit—refinance, sale, or cash flow—so your future bank sees a clear pathway.
4) What security do you accept?
Residential or commercial property only. We don’t accept other obscure assets as collateral. Keeping security to property helps us deliver reliable timeframes and simpler terms.
5) How much can I borrow and at what price?
Subject to equity, you can borrow up to $10 million. We offer an interest rate of 11.95% depending on scenario and risk, with terms built for short-term needs. We’ll confirm all costs up front before you commit.
Learn more about our second mortgage and secured business loan solutions.
