Funding for Small Business Restructuring (SBR)

A two-tranche private lending facility purpose-built to fund a company through the Small Business Restructuring process — secured by a 1st or 2nd mortgage over real estate and coordinated with your appointed Small Business Restructuring Practitioner (SBRP).

What is a Small Business Restructuring?

Small Business Restructuring (SBR) is a formal insolvency process under Part 5.3B of the Corporations Act 2001 (Cth), available to incorporated small businesses with total liabilities of $1 million or less. Directors remain in control of the company while a registered Small Business Restructuring Practitioner (SBRP) oversees the process and helps propose a restructuring plan to creditors.

The SBRP has up to 20 business days to help the company put a plan to creditors, who then have up to 15 business days to vote. If the plan is accepted, the company pays an agreed amount to creditors in full and final settlement of admitted debts, and continues trading.

Important: 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 commenced and run by a registered SBRP. Please obtain independent legal and accounting advice before entering an SBR.

The Two Funding Moments in an SBR

An SBR creates two distinct funding moments that most distressed businesses cannot self-fund. Our facility aligns directly with both.

Tranche 1 — At SBR Commencement
Funds the costs that must be paid before the SBR can validly start: the SBRP fee for the Restructuring Phase, outstanding employee entitlements (required to be current under section 453C of the Corporations Act), and settlement of any existing finance facilities required as a condition of the SBR or of our facility.
Tranche 2 — Funding the Approved Plan
Drawn after creditors have voted to accept the restructuring plan. Tranche 2 funds the payment due under the approved plan — typically dominated by the ATO as the majority creditor, but the amount and creditor treatment are set entirely by the plan as voted.

Our Two-Tranche SBR Funding Facility

A single master limit, secured by real estate, drawn at the two moments funding is needed.

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.

Get an Indicative Funding Range

A short form to share the basics. We respond within 24 hours with an indicative range — useful for directors scoping options and SBRPs testing funding feasibility before plan commencement. No obligation, no impact on credit.

No obligation. We'll respond within 24 hours.

Read the In-Depth Guide

Our complete guide to funding a Small Business Restructure covers the SBR process, where the cash is required, security structures, and how to coordinate funding with your SBRP.

Read the Guide

Frequently Asked Questions

Common questions about SBR funding and how our facility works.

Important — Scope of Service and Risk Disclosure

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, insolvency, legal, or tax advice. A Small Business Restructuring can only be commenced and conducted by a registered SBRP.

Private lending and short-term secured finance involves risks that differ from standard bank lending, including higher rates and fees, fees payable on signing of the letter of offer, and registered security interests over the secured property. We strongly recommend you obtain independent legal and accounting advice before entering an SBR or signing any loan or fee documents.

All approvals are subject to credit assessment, satisfactory valuation, security position, and lender requirements. Indicative figures discussed are not an offer of credit.

Read our full Private Lending Fee Guide →

Ready to Discuss SBR Funding?

Speak with our team for an indicative funding range or to coordinate with your appointed SBRP.

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