Private & short-term · distressed & rescue
Refinancing your way out of trouble.
Specialist lending for businesses in financial distress, facing receivership, or refinancing out of non-performing positions. Higher cost reflects risk; success depends on a credible turnaround plan and asset coverage. Cashtech connects qualified situations with specialist lenders.
What it is, when it fits
Plain English, with the trade-offs.
Distressed and rescue finance refinances businesses out of financial trouble: out of receivership, out of non-performing senior debt, out of distressed property settlements. The lender pool is narrow (specialist private credit funds with workout capability) and underwriting is intense; lenders need a credible turnaround plan, robust asset coverage, and director engagement before considering. Pricing reflects risk: 14% to 25% p.a. typical, sometimes higher for complex situations. Loan sizes $250K to $20M, terms 6 to 24 months. Distressed lending is structurally different from mainstream private credit because the borrower's profile is by definition impaired; the lender's protection comes from the asset position and the turnaround plan, not the borrower's ongoing creditworthiness. We engage carefully on these situations, including being explicit when the right answer is voluntary administration or other insolvency processes rather than further borrowing.
Hands reviewing finance documents over a paper-strewn table.
Typical scenarios
Business refinancing out of receivership
Why: Receiver appointed; replacement lender willing to refinance with strong turnaround plan.
Outcome: $2.5M distressed refinance, 12-month term, exits as restructure stabilises.
Distressed property settlement
Why: Property settlement at risk of default; bridging to permanent refinance unavailable through mainstream lenders.
Outcome: $1.2M distressed bridge, 6-month term, exits on refinance to permanent commercial debt.
Non-performing loan refinance
Why: Existing senior in default; new specialist lender with workout capability willing to take it.
Outcome: $4M distressed refinance with restructured terms; turnaround plan included.
Urgent business rescue capital
Why: Trading viable but immediate cashflow shock; specialist lender sees rescue path.
Outcome: $800K rescue capital, 18-month term, repaid from restored trading.
Lenders for this product
Who we work with.
- Assetline Capital
- Liberty Commercial
- Fortis Capital
Lender accreditation varies; not every lender is available for every deal. We pick from the panel based on your specific situation.
How it works
From brief to settlement.
- 01
Situation assessment
We assess the business position, asset coverage, turnaround viability, and director liability picture before recommending engagement. If the right answer is insolvency advice, we say so.
- 02
Insolvency-adviser coordination
For distressed situations we coordinate with appropriately qualified insolvency advisers before approaching lenders. Directors' personal-liability exposure must be managed.
- 03
Specialist lender engagement
Three specialist lenders cover most rescue situations. We match deal profile (asset type, size, distress depth, turnaround plan) to lender appetite.
- 04
Settlement and turnaround
Lender settles, turnaround plan executes against milestones, refinance or asset sale at exit. We support throughout the cycle.
Indicative pricing & terms
Ranges, not promises.
Rate range
14 to 25% p.a.
Loan size
$250K to $20M
Term
6 to 24 months typically
Security
First or second mortgage, fixed and floating charge, sometimes director's guarantees
Indicative only; specific pricing depends on lender, security, and your business profile.
Frequently asked
Honest answers, plain English.
When is rescue finance appropriate?
When the underlying business or asset is viable but a near-term shock has impaired senior creditor confidence. When asset coverage is robust and a credible turnaround plan exists. When voluntary administration would destroy more value than the rescue cost. We are explicit when none of those apply.
Insolvency considerations and director responsibilities?
Directors carry insolvent-trading liability under Corporations Act provisions. Continuing to trade while insolvent can result in personal liability for new debts incurred. Distressed refinancing must be handled carefully with insolvency advice; we coordinate with appropriately qualified advisers.
Asset coverage requirements?
Distressed lenders typically require 50% to 65% LVR on first-mortgage security; lower for second-mortgage. Asset coverage is the lender's primary protection because the borrower's creditworthiness is by definition impaired.
Turnaround plan requirements?
Most lenders require a documented turnaround plan: specific actions, timeline, expected financial outcomes. Robust plans typically run 12 to 24 months and include milestone-based reporting to the lender.
Exit strategies?
Most distressed loans exit via refinance to mainstream commercial debt once the business profile re-conforms (12 to 24 months typically), or via asset sale if turnaround doesn't deliver. Exit strategy is non-negotiable at origination.
When is this genuinely worse than insolvency?
When the rescue cost (interest, fees, coercive terms) exceeds likely recovery. When the underlying business is structurally non-viable. When directors face personal liability that further trading would compound. We are direct on this.
Related products
If this isn't quite the fit.
Next step
Twenty minutes, no obligation.
Tell us the shape of the deal and the timing. We'll send a lender shortlist for distressed and rescue finance or, if it isn't the right fit, an honest signal of what is.