Two-Tranche Funding for Small Business Restructuring (SBR)
A purpose-built private lending facility for companies entering an SBR. Approved as a single master limit secured against real estate and drawn in two tranches that align with the statutory SBR timeline. Andorra Private arranges the finance only — the restructuring itself must be conducted by a registered Small Business Restructuring Practitioner (SBRP).
Key Features
Two-Tranche Drawdown
A single master limit, drawn first at SBR commencement and again on creditor acceptance of the plan.
1st or 2nd Mortgage Security
Secured against residential, commercial or mixed-use real estate. Subject to LVR, valuation, and lender approval.
SBRP-Compatible Structure
Designed to align with the SBR statutory timeline and your appointed practitioner's restructuring plan.
Indicative Pre-Approval
Indicative terms returned quickly so your SBRP can scope the plan with funding certainty before commencement.
Recently Funded Deals
See what's possible with the right finance solution
*Based on real deals settled by Andorra Private. Details may be generalised for confidentiality.
Unregistered MIS — Industrial Warehouse Portfolio
The Scenario
A property syndicate structured as an unregistered managed investment scheme sought finance to acquire a portfolio of large industrial warehouses in regional Victoria.
The Challenge
The syndicate required non-recourse lending with no directors guarantees — a structure many lenders are unfamiliar with. Loan documentation needed to reflect the MIS trust structure correctly, requiring coordination between the client, their solicitor, and the bank's solicitor.
The Solution
We identified a major bank willing to provide a lease-doc facility on a non-recourse basis. We then worked closely with all parties — the client, their legal counsel, and the bank's solicitors — to ensure the loan contracts correctly reflected the trust structure and that no personal guarantees were required.
The Outcome
The facility was successfully arranged with a major bank. The syndicate acquired the warehouse portfolio with no directors guarantees, and all loan documentation was executed correctly on the first pass.
Non-Recourse
Structure
None
Guarantees
Lease-Doc
Facility Type
Major Bank
Lender
Test SBR Funding Feasibility
Share the basics — security details, indicative quantum, and timing. We respond within 24 hours with an indicative range you or your SBRP can use to scope the plan. No obligation, no impact on credit.
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Start ApplicationHow the Two-Tranche Structure Works
An SBR creates two distinct funding moments. Before the process can commence, a company must engage and pay a registered Small Business Restructuring Practitioner (SBRP), bring employee entitlements up to date, and in many cases settle other existing finance facilities as a condition of the SBR or of the new lender. Once the restructuring plan has been negotiated and accepted by creditors, a further payment is required to fund the agreed plan dividend.
Our two-tranche facility approves a single master limit up front, secured by real estate, and releases the funds in two staged drawdowns that mirror those two funding moments — so you have funding certainty when you appoint your SBRP, and capital ready to settle the plan once it is voted up.
Tranche 1 — At SBR Commencement
The first tranche is released at or immediately before the SBR commences. It is typically used to pay the SBRP fee quoted up front for the Restructuring Phase, to settle existing finance facilities where required as a condition of the SBR or of our facility, and to bring outstanding employee entitlements current.
Bringing employee entitlements (wages, superannuation, and leave) up to date is a statutory precondition under section 453C of the Corporations Act 2001 (Cth) — an SBR cannot validly commence while these amounts remain owing. Tranche 1 is sized to cover this requirement alongside the other commencement costs.
Tranche 2 — Funding the Approved Plan
After the SBRP has negotiated a restructuring plan with creditors and the plan has been accepted by the requisite creditor majority, the company is required to fund the agreed plan payment. The Australian Taxation Office is typically the majority creditor in an SBR, so the payment most often settles a defined dividend on the ATO debt alongside other unsecured creditors — but the amount, terms, and treatment of each creditor are set entirely by the plan as voted, not by us.
Tranche 2 is drawn against the same master limit, on satisfaction of the conditions in our letter of offer, to fund the agreed plan payment. We do not extinguish a tax liability directly — we fund the payment due under the approved restructuring plan.
Security and the Borrower
The facility is secured by a registered 1st or 2nd mortgage over real estate. Security is most often provided by a related party — typically a director — over residential, commercial, or mixed-use property. Where the security is a 2nd mortgage, the consent of the existing first mortgagee is required, and we handle that process as part of the application.
Maximum LVR depends on property type, position (1st or 2nd), and the lender. A current valuation is required as part of approval. All approvals are subject to credit assessment, satisfactory valuation, security position, lender requirements, and acceptance of our letter of offer.
Working With Your SBRP
Andorra Private is a finance broker. We are not a Small Business Restructuring Practitioner, insolvency practitioner, lawyer, or tax adviser, and we do not provide restructuring, legal, insolvency, or tax advice. An SBR can only be conducted by a registered SBRP, and we strongly recommend you obtain independent legal and accounting advice before entering an SBR or signing finance documents.
We coordinate funding alongside your appointed SBRP. Our role is to provide indicative pre-approval before commencement so the SBRP can scope the restructuring plan with funding certainty, then to settle the two tranches in line with the SBR timeline.
Discuss Your SBR Funding — Two-Tranche Facility for Small Business Restructuring Needs
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“Nick as a broker is part of my dream team for not only residential but especially commercial lending and has been nothing short of brilliant! Always calm under pressure and gets the job done. Very proactive and knowledge far superior to other brokers I've worked with. He's also got another option up his sleeve to ensure you achieve your goals. Absolutely no hesitation in recommending Nick for all things finance. Do yourself a favour and have a preliminary chat with Nick.”
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“Nick is an absolute gun at his job. I've been through many brokers over the years, and he is by far the best I've worked with. His knowledge in the commercial space is second to none, and the way he handles the process is completely seamless.”
P
Commercial Finance
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Commercial Property
Important — Private Lending Risk Disclosure
Private lending and short-term secured finance involves risks that differ from standard bank lending. Please read this notice carefully before proceeding.
Fees: Brokerage fees become payable upon your signing of the letter of offer. At our discretion, we may allow deferral of payment until settlement — but this does not waive or reduce the obligation to pay. Commitment fees, valuation fees, legal fees, and other costs may be incurred from engagement and are payable regardless of whether the facility proceeds to settlement.
Security interests: Lenders will register a mortgage or caveat over the secured property as a condition of approval. Andorra Private, as your broker, may also hold a registered security interest over the property for unpaid broker fees. These interests remain registered until the loan is settled or all outstanding fees are paid.
We strongly recommend you obtain independent legal and financial advice before signing any loan or fee documents.
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