Urgent Short Term Finance for the GST on a Commercial Property Purchase

It can. The goods and services tax can be part of the loan, repaid by your company once the ATO pays the refund. Our 70% limit applies to the whole loan, so on a factory valued at $4,000,000 we can lend up to $2,800,000 against the factory alone, and your company brings about $1,600,000 plus costs or adds another property as security. Ask your accountant to confirm how goods and services tax applies to the receiver's contract and when your company can claim the refund, and send us that advice with the contract. Start both on the day you receive the contract, as a receiver may hold firmly to its settlement date.

Yes. 70% of $1,200,000 is $840,000, so a $300,000 loan fits well inside our limit on your house. The business buying the property is the borrower, receives the loan funds and pays the goods and services tax to the seller at settlement. The goods and services tax credit claimed on the business's next BAS is the usual way the loan is repaid. A caveat or a first mortgage over the house are both options.

• →Caveat loans

It can, where the two loans together stay within 70% of the lower of the warehouse's value and the price. 70% of $3,000,000 is $2,100,000, so if the bank lends $1,800,000, there is room for $300,000 behind it. Second mortgages start from 11.95% p.a. Send us the bank's approval with the contract, so we can confirm the figures before settlement.

• →Second mortgage finance

It can shorten it. The loan is repaid from the goods and services tax credit claimed on the business activity statement, so an earlier statement can mean an earlier refund. We still set the term with time to spare, because the ATO may review a large refund before paying it. Tell us which month your accountant plans to lodge, and we will set the term around that date.

Not necessarily. The goods and services tax credit is generally claimed on the BAS for the period in which the purchase happens, so a settlement late in June usually falls in the April to June period for a business that reports quarterly. Your accountant confirms the period and when the statement can be lodged. We then set the loan term with time to spare for the ATO to process the refund.

Yes. One loan can cover the goods and services tax, stamp duty and settlement costs together. The goods and services tax part is repaid from the credit on your BAS, but stamp duty is not refunded that way. The rest of the loan needs its own repayment plan, such as a bank refinance or the sale of a property, agreed with us before settlement.

• →Bridging loans

It can. The ATO can apply a refund to other tax debts the business owes before paying any balance, which would leave less of the refund to repay the loan. Tell us about the older debt on the first call. One option is a loan large enough to clear the older ATO debt at settlement as well, so the goods and services tax refund is not reduced by it. Your accountant can confirm the balance the ATO holds.

• →Urgent finance for an ATO debt

Yes. We refinance loans from other private lenders, and a refund under review can make a loan run past its date. We look at the payout figure inside 70% of the property's value and at the refund as the repayment plan. Send us the other lender's payout figure, the property details and any letter from the ATO about the review. Come to us before that loan expires, because the options narrow once it has.

• →Refinance business loans

Not necessarily. The claim generally depends on the buyer being registered for goods and services tax and buying the property for use in its business, including leasing it out, and your accountant confirms that for your purchase. We ask for confirmation of the registration and your accountant's view on when the credit will be claimed. With those two documents, we can set the loan term around the refund.

It can, where the trustee of the trust is a company. The trustee company, as the buyer, is the borrower and receives the loan funds, and your house is the property that secures the loan, within 70% of its value. We check that the trust deed allows the trustee to borrow for the purchase, so ask your solicitor to send us the deed early.

Three things: the contract showing the price and the goods and services tax terms, confirmation that the business is registered, and your accountant's view on when the credit will be claimed. The refund is the repayment plan, not the security. The loan is secured by a mortgage or a caveat over residential, commercial or industrial property, which can be the factory itself or another property you own.

It depends on the contract and the property. A leased property sold as a going concern is usually GST-free, while vacant and new commercial property is usually taxable. Your accountant or solicitor should confirm the GST treatment before you exchange.

Many refunds are paid within a few weeks of lodging the BAS, but a large refund can be held for review. That is why we set the loan term with time to spare. Lodging your BAS promptly after settlement is the best way to speed it up.

If the conditions for a going concern are not met, GST may be payable when you expected it not to be. Contracts usually deal with this, and your solicitor can explain yours. We can fund the GST quickly if it becomes payable at or close to settlement.

Our loans start at $250,000, which means GST on a purchase of about $2.5 million or more. For a smaller amount, we may be able to fund the GST as part of a larger loan on the purchase. Otherwise your bank may be the better option.

To claim the GST back, the buyer generally needs to be registered for GST and buying the property for its business or investment. If you are not registered, the GST is part of your cost, and the loan would need a different repayment plan.

Next week is achievable, and same-day funding is possible depending on your scenario. Because the loan has a clear repayment date from your BAS refund, the assessment is usually straightforward.

• →$1.2 million second mortgage in 24 hours for a commercial purchase
• →$2.8 million settled within days on a liquidator sale
• →$3.2 million funded in 24 hours

Yes. If paying the GST and stamp duty has drawn down your working capital, we can also fund stock, staff or supplier payments. We lend to manufacturing, wholesale, retail and other businesses buying commercial premises.

• →Manufacturing lending
• →Wholesale lending
• →Working capital loans

Yes. If your bank is not ready, we can fund the purchase and the GST together with a first mortgage over the property, up to 70% of the lower of its value and the price. You then refinance the purchase to a bank and repay the GST part from your BAS refund.