What You Need to Know About Funding a Restructure in 2025…
With the ATO ramping up its enforcement of tax debts and thousands of business owners facing mounting pressure from creditors, many Australian business owners are wondering if there’s a realistic path out of financial distress. One of the most misunderstood options is using non-traditional finance as part of a broader business restructure strategy.
At O’Brien Palmer (OBP), we believe that transparency and education are essential in helping people navigate financial difficulty. That’s why our Managing Partner, Liam Bailey, sat down recently with William Banham and Angus Fraser from Front Financial (a Sydney-based mortgage brokerage and non-bank lender) to explore how finance can be used to stabilise a business and help directors take control of their financial future.
DISCLAIMER – The information provided in this video is for general informational purposes only. O’Brien Palmer does not endorse or recommend any specific lenders or financial institutions featured. No financial benefit, referral fee, or commission has been received in connection with this content. Viewers are encouraged to seek independent advice tailored to their individual circumstances before making any financial decisions.
Why Finance is Becoming a Key Part of Restructuring
Small Business Restructures (SBRs) are on the rise. And with them, there’s increasing demand for practical, fast-access solutions to pay down debt and prevent insolvency appointments. According to OBP Managing Partner Liam Bailey:
“We’re seeing more advisors and business owners bring finance into their restructuring proposals to make them more appealing to creditors. If you can offer a return upfront rather than 12 to 24 months down the track, creditors are more likely to support the plan. It’s a great example of how a business can be saved, even when things seem hopeless, if the right funding solution is in place.”
However Liam is the first to caution that finance isn’t always a magic bullet. It’s one tool among many. The key is knowing what options are available, and whether using capital to fund a restructure is the smartest move.
What are the traditional and non-traditional finance options available?
William and Angus from Front Financial works with banks, non-banks, and private lenders, and they also lend directly when time is critical. Their clients range from mum-and-dad small businesses to operators facing urgent Director Penalty Notices (DPN) deadlines of 21 days, or spiralling interest from alternative lenders which make it impossible to pay down the loan.
“Not everyone needs to go to a private lender,” says William. “A lot of the time we can actually secure funding from a non-bank lender at 7 percent interest. If we’ve got even a few weeks’ lead time, we can usually find a much more cost-effective option than people expect. Urgency is everything.”
William and Angus explain that while short-term loans might cost more, they’re often only needed for 30 to 60 days. The important thing is that they buy time to get a stronger long-term solution in place.
Act Fast or Pay the Price
When it comes to financial distress, acting early can mean the difference between success and collapse. As Angus Fraser explains:
“The longer people wait, the fewer options they have. By the time you’ve missed several repayments or defaulted on a loan, your choices narrow. The earlier we get involved, the more flexible the lenders are – and the lower the cost of the loan.”
This sentiment is echoed across the industry. Restructuring isn’t about getting deeper into debt. It’s about managing your obligations smartly, preserving business value, and giving yourself the best chance of recovery.
What If You Don’t Have Property or Assets?
While many of the case studies involve securing finance against property or commercial assets, not every client has this option. Banham and Fraser are clear:
“There are always options. But that doesn’t mean it’s always the right thing to do. We look at the entire picture – the risk, the rates, the purpose of the loan, and we’re not afraid to tell someone that restructuring might not be their best bet.”
This aligns closely with OBP’s values. As Liam Bailey puts it:
“We’re not in the business of selling liquidations. We’re here to provide the best solution – whether that’s a restructure, a formal appointment, or walking away from a business that no longer serves you.”
The Bottom Line
Finance can be a valuable tool – but only when used carefully and as part of a bigger strategy. Whether you’re facing a Director Penalty Notice, mounting ATO debt, or a restructure opportunity, the earlier you seek advice, the better your chances.
If you’re unsure what options are right for your business, reach out to a trusted advisor. At O’Brien Palmer, we’re here to help.
Contact O’Brien Palmer today for confidential advice and support.
📞 Call us at (61) 2 9232 3322 for a confidential chat.
📩 Email us at: obp1@obp.com.au
Many thanks to William and Angus from Front Financial for sharing their knowledge. If you’d wish to get in touch with them to discuss finance options, visit their website www.frontfinancial.com.au