21 days to deal with a statutory demand, and a lawyer is the first call.
- Property-secured funding, with some non-bank and specialist lenders able to fund within 2 business days of a complete file
- Loans from $50K to $5M to pay the amount named in a creditor's statutory demand
- Directors of companies that can pay their debts as they fall due and carry a new repayment
- Covers the debt in the demand, whether it is owed to a supplier, a contractor, a landlord or a finance company
- Full-doc (tax returns), low-doc or alt-doc (BAS, bank statements or an accountant's letter instead) and no-doc options across our 90+ lender panel
Your company has been served with a statutory demand, and it has 21 days to respond. The first call is to a lawyer, because disputing the debt or asking the court to set the demand aside are legal steps with their own deadline. Where the debt is owed and the company is solvent, paying it is one way to comply. Statutory demand finance is a loan, usually secured over property owned by the company or a director, used to pay the creditor in full inside that period. It fits a business that can keep trading and meet the new repayment. Joseph Farhat and his team can tell you early whether a lender on the panel can settle before your deadline, and they will say so plainly if a loan is not the right step.
Who we can help access finance
- Directors of a trading company that owes a supplier or contractor an amount it does not dispute, and has now been served a demand for it.
- Companies whose accountant has confirmed they can meet their debts, but whose cash is tied up in unpaid invoices or stock when the demand arrives.
- Directors whose lawyer has reviewed the demand and confirmed that paying the debt is the next step.
- Companies that own their premises, a warehouse or other real property with equity to borrow against.
- Directors prepared to offer a home or investment property as security for the company debt, once they have had independent legal advice.
- Companies dealing with a statutory demand and an ATO debt at the same time, where the accountant wants the whole creditor position handled in one plan.
How Statutory Demand Finance Works
A creditor's statutory demand is a formal demand under the Corporations Act for a debt that is due and totals at least $4,000. The company has 21 days to pay the debt, secure it, or compound it, which means settle it on terms the creditor accepts. An application to the court to set the demand aside must be filed and served within the same 21 days, and that deadline is strict. If the company does not comply, a court hearing a winding-up application made within 3 months must presume the company is insolvent.
Finance is one way to pay. On its own it does not stop a winding-up application, and it does nothing about any other creditor. The company owes the lender instead, on terms agreed before anyone signs, and property offered as security is at risk if those repayments are missed. Joseph Farhat and his team look at the amount demanded, the property available, the company position and the days left. They then match the file to lenders on our panel of 90+ bank, non-bank, and specialist lenders that can complete a property-secured loan in that time.
We are a finance broker, not a lawyer, accountant or registered insolvency practitioner. Whether the debt is owed, and whether to apply to set the demand aside, are questions for a lawyer. Whether the company is solvent is a question for its accountant. If the company may not be able to pay its debts as they fall due, a registered insolvency practitioner comes before any new borrowing. Funding is only arranged where the company can carry it.
What Lenders Assess for Statutory Demand Finance
Days left on the demand
lenders and valuers are chosen for whether they can settle before the 21 days end, so the date the demand was served matters from the first call.
Solvency and trading
lenders look for evidence that the company can keep trading and pay its debts as they fall due, usually recent bank statements, management accounts and the accountant's view.
The legal position
whether the debt is accepted or disputed, and what your lawyer has said about the demand. Lenders want certainty about the amount they are funding.
Security and equity
the loan-to-value ratio (LVR), the loan as a share of the property's value, after any existing mortgage, sets how much is available and at what price.
Who owns the property
company-owned real estate and a director's home are documented differently, and a director's property usually means a personal mortgage and guarantee.
Other creditors
lenders ask for the full list of overdue debts, including any ATO balance, because paying one creditor while others are overdue leaves the risk in place.
The exit
how the loan will be repaid, whether through trading income over a longer term, a refinance once the position settles, or a property sale.
The Statutory Demand Finance Process: What to Expect
- Take the demand to your lawyer on the day it arrives. Ask them to confirm the last day of the 21 days, whether the debt is disputed, and whether a set-aside application is needed.
- Ask your accountant to confirm that the company can pay its debts as they fall due. If there is any doubt, see a registered insolvency practitioner before any new borrowing.
- Send Joseph Farhat and his team the demand, its deadline, details of the property that could be security, and your lawyer's and accountant's contact details. You get an early view on whether settlement in time is realistic.
- We match the file to lenders that can value, approve and document the loan inside your window. The approval sets out the rate, fees, term and security, and we take you through the total cost before anything is signed.
- At settlement, funds are paid to the creditor. Your lawyer can then confirm in writing with the creditor that the amount in the demand has been received.
Indicative Finance Options
| Lender Type | Indicative Rate | Max LVR | Typical Loan Range | Loan Term | Speed to Funding |
|---|---|---|---|---|---|
| Bank | Not typically offered for a 21-day statutory demand payment. Possible as part of a wider refinance where the timeline allows. | ||||
| Non-Bank Lenders | From ~9.5% p.a. | Up to 75% | $50K to $3M | 6 months to 5 years | Within 2 business days |
| Private Finance | From ~1.2% per month | Up to 75% | $100K to $5M | 1 to 24 months | Available for unique scenarios |
Indicative figures only. Actual rates and terms depend on your project, financial position, property location, and lender assessment at the time of application. Rates are subject to change.
Why borrowers choose Settled With Joe for statutory demand finance
We represent you, not the lender
Joseph Farhat and his team act for you from the day the demand arrives through to settlement.
Legal steps come first
funding is planned around your lawyer's timetable, so it does not get ahead of a dispute or a set-aside application.
Solvency before speed
if your accountant or an insolvency practitioner has doubts about the company, we will not push a loan forward.
Lenders matched to the deadline
settlement timing is weighed alongside price, because a cheaper loan that settles after day 21 does not meet the demand.
One conversation, not several applications
each credit enquiry is recorded on your credit file, so the first lender approached needs to be a realistic one.
90+ lenders on one panel
bank, non-bank, and specialist lenders, compared on your property, your deadline and the company position.
Private finance for unique scenarios
where bank and non-bank lenders are not the right fit, we can introduce you to private finance options.
Usually no direct cost to you
as a broker we are typically paid by the lender on settlement.
An honest answer early
tell us the date the demand runs out and we will say what is realistically achievable in the days left.
Frequently asked questions
What is a creditor's statutory demand?
It is a formal demand, made under the Corporations Act, for a company to deal with a debt that is due and totals at least $4,000. The company has 21 days to pay, secure or compound the debt. If it does not, a court must presume the company is insolvent in a winding-up application made within 3 months. Statutory demand finance is a loan used to pay the debt in full within the 21 days, where the company is solvent and can carry the repayment.
Does paying it end the demand?
Paying the full amount within the 21 days is one of the ways a company complies with the demand. Once it has complied, the presumption of insolvency that comes from failing to comply does not arise from that demand. Paying does not deal with any other debt the company owes, and it does not stop a creditor taking other steps. Ask your lawyer to confirm the exact amount to pay and to get written confirmation from the creditor once it is received. A loan pays the creditor, and the company then owes the lender under the loan terms.
What if I dispute the debt?
Speak to a lawyer straight away. Disputing the debt and applying to set the demand aside are legal steps, and the set-aside application must be filed and served within the same 21 days. That deadline is strict, so time spent looking at funding must not eat into it. We do not assess whether a dispute has merit; that is for your lawyer. If your lawyer confirms that all or part of the debt is owed, Joseph Farhat and his team can then look at funding for the amount to be paid.
Can I borrow if the company is struggling?
Only if the company can still pay its debts as they fall due and carry a new repayment. A statutory demand can be one sign of wider cash pressure, so ask your accountant for a clear view of the whole position first. If the company may be insolvent, speak to a registered insolvency practitioner before borrowing anything, and they can explain where that leaves you as a director. A loan that pays one creditor does not fix a company that cannot pay its debts. Where your accountant or an insolvency practitioner has doubts, we will not arrange new borrowing.
How fast can funds settle inside 21 days?
Timing turns on three things: the property offered, the lender chosen and how complete the file is. Some non-bank and specialist lenders can fund within 2 business days of a complete file. A property-secured loan still needs a valuation, title searches and signed security documents. The lawyer and accountant steps run first or alongside, so the sooner the demand reaches everyone, the more of the 21 days is left for funding. Joseph Farhat and his team will tell you early whether a lender can realistically settle before the deadline. If it cannot, you will know with enough time to act on your lawyer's next step.
Can the company borrow with low-doc or no-doc paperwork?
Often, where the loan is secured over property with enough equity. Several lenders on the panel lean on the security and the exit more than on full financials, and some no-doc options exist for commercial loans. Expect a higher rate and a lower LVR in exchange for less paperwork. Lighter documentation does not replace the solvency question. Lenders will still ask about the demand, the other creditors and how the loan will be repaid.
Do you work with borrowers with bad credit?
Yes, we do. A default, a court judgment or a patch of late payments does not rule the company or its directors out, and you will not be judged for it. The condition on this page still applies: the company must be able to pay its debts as they fall due and carry the new repayment, and your accountant confirms that first. Several lenders on our panel give more weight to the property, the equity and a credible exit than to the credit history, and set their pricing to suit. Telling us at the start means the file goes to a lender that fits, rather than collecting enquiries across several. Joseph Farhat and his team will tell you honestly what is achievable before any application is made.
Why work with Settled With Joe to arrange your statutory demand finance?
Because a demand on a 21-day clock needs one conversation, not a round of applications. The people we help here are company directors and business owners with a dated demand from a supplier, contractor, landlord or finance company, sometimes alongside an ATO debt or a director penalty notice. There is no judgement in the conversation. What a lender looks for is a solvent company, a confirmed debt, equity in property, and a realistic way to repay. Our panel covers 90+ bank, non-bank, and specialist lenders, so a well-documented file can go to a bank at a sharper rate where time allows, and there are still options when funds are needed within days. We are based in Sydney and work with companies Australia-wide. Joseph Farhat and his team will tell you honestly and early whether a loan can settle in the time left.
Do you give financial advice?
No. We do not guide you on your finances, nor give financial advice. We focus on outcomes and solutions of presenting your unique scenario to the right lender so you can access funding in a timely and compliant manner.
Do you help with statutory demand finance outside Sydney?
Yes. Settled With Joe is based in Sydney and arranges statutory demand finance Australia-wide, covering both metro and regional areas. We work with clients in Sydney, Melbourne, Brisbane, Perth, Adelaide, and Canberra, as well as regional areas including Newcastle, Wollongong, Geelong, Gold Coast, Sunshine Coast, and Toowoomba. A statutory demand is made under the Corporations Act, a Commonwealth law, so the 21 days apply in every state and territory. Valuer and settlement timing still varies by location, and Joseph Farhat and his team will look for lenders that can settle against your property in time.
