If a statutory demand lands on your desk, the clock starts. You’ve typically got 21 days to pay, secure, or set it aside. For many capable businesses, the issue is not solvency — it’s timing. A second mortgage loan for statutory demands can provide the capital to resolve the demand and avoid escalation. At Secured Lending, we’ve advised and assisted borrowers facing a statutory demand and have facilitated over 200 strategic second mortgages. When time matters, we can help you move fast. Assess your scenario today.
What a statutory demand really means
A statutory demand is a formal notice to your company to pay a debt within a short window. If not addressed in time, it can escalate into winding-up proceedings and create a presumption of insolvency. Beyond the legal risk, it can:
- Distract your management team and disrupt operations
- Damage supplier or investor confidence
- Trigger bank covenants or credit insurance reviews
Your priority is to control the narrative and respond with certainty. Access to capital quickly is often the difference between escalation and resolution.
Why a second mortgage is a practical solution
A second mortgage lets you unlock equity in property you already own without disturbing your first mortgage. It’s a targeted, short-term solution to an urgent need. Benefits include:
- Speed: We can arrange same day settlement or funding within 24 hours where due diligence is straightforward. That supports an urgent settlement before the deadline.
- Maintain existing banking: Keep your primary facilities in place; no need to refinance everything for a single event.
- Flexible terms: Interest-only, short terms designed to match your exit (sale, refinance, receivables, or a capital event).
- Control and confidentiality: You keep momentum, settle the demand, and negotiate from a stronger position.
- Cost visibility: Interest and fees are clear up front, with options to capitalize interest to preserve cash flow.
- Strategic leverage: Use a second mortgage to secure a discount or deed of release if the creditor prefers a quick resolution.
When a second mortgage makes sense
- ATO or supplier demand with a clear exit in sight
- Temporary cash flow gap ahead of a confirmed receivable or project milestone
- Bridging a sale or refinance that’s a few weeks away
- Protecting a broader transaction (settlement, acquisition, or refinance) from disruption
- Avoiding reputational fallout while you contest elements of the claim
How the process works with Secured Lending
We keep it simple and outcome-focused:
- Review: We assess your company, the statutory demand, and your property security. We’ll map the exit strategy in plain terms.
- Indicative terms: You receive a clear outline — loan amount, interest, fees, and timing. We offer an interest rate of 11.95% (scenario-dependent).
- Valuation and consent: We coordinate valuation and, where required, consent from the first mortgagee. We manage the logistics.
- Documentation: We issue documents for signature and liaise with your solicitor to align settlement timing to the statutory demand deadline.
- Settlement: For urgent, emergency matters, we can facilitate same day settlement or funding within 24 hours where documentation is in order.
Security we accept (and what we don’t)
- We lend against residential or commercial property you own. This is how we structure secured business loans quickly and reliably.
- We don’t accept other obscure assets as collateral. Staying focused on property allows for certainty, speed, and appropriate risk control.
Private Lender advantage for time-critical resolutions
As a private lender in Australia, Secured Lending operates Australia wide: Sydney, Adelaide, Melbourne, Brisbane, Perth, Gold Coast, Canberra. We are a non-bank lender with streamlined decision-making, so you deal with people who can actually approve and settle the loan. Whether you need bridging loans, a second mortgage, or short-term secured business loans for an urgent settlement, we can move with the pace your situation requires. Depending on security and scenario, you can borrow up to $10 million with an interest rate of 11.95% (subject to assessment and documentation).
Real-world examples we see
- A construction company receives a statutory demand from a subcontractor. A second mortgage provides immediate capital to settle, while a project progress payment lands two weeks later to clear the loan.
- A wholesaler faces a statutory demand from a key supplier. The business uses a second mortgage to pay the demand, secures a settlement discount, and then refinances to a longer-term facility once year-end accounts are finalized.
- A technology firm is disputing part of a claim but chooses to neutralize the demand quickly. A short-term second mortgage resolves the demand, preserving investor confidence while the dispute is negotiated separately.
Costs, terms, and what to consider
- Pricing: We tailor rates and fees to the risk and timeline; we offer an interest rate of 11.95% depending on scenario and security.
- Term: Typically short-term to align with your exit strategy. Many clients clear within months.
- Exit clarity: Your exit might be a refinance, property sale, incoming receivables, or a liquidity event. We help you structure the timeline clearly.
- Legal coordination: We encourage you to seek independent legal advice on the statutory demand itself. Our role is to deliver capital quickly and cleanly.
Key benefits of using a second mortgage for a statutory demand
- Certainty of response within the deadline
- Protects your primary banking relationships
- Avoids forced sales or distressed decisions
- Preserves goodwill and reputation with creditors and stakeholders
- Buys time to negotiate or finalize a refinance
- Supports continued operations without draining working capital
How We Can Help
Secured Lending has advised and assisted borrowers facing statutory demands and has facilitated over 200 strategic second mortgages. We review your position, structure the facility, coordinate stakeholders, and confirm a settlement plan that aligns with your deadline and exit. If speed matters, we can prioritize urgent, emergency timelines — including same day settlement or funding within 24 hours where feasible. Assess your scenario today and move forward with clarity.
Secured Lending is a short-term lending solution you can rely on. When you’re ready, our team is here to help you move quickly and confidently. Our team specialises in urgent short term loans solutions such as bridging finance, second mortgages, and caveat loans. We have provided strategic lending advice for this in the past and can help assess your scenario.
FAQs
1) Will my first mortgage need to approve a second mortgage?
Often, yes. Many first mortgagees require consent. We handle that process and liaise directly to keep timing on track.
2) How quickly can you settle a second mortgage for a statutory demand?
If documents and valuation are in place, we can arrange same day settlement or funding within 24 hours. Complexity of title, consents, and documentation can affect timing.
3) What security do you accept?
Residential or commercial property is acceptable. We don’t accept other obscure assets as collateral. Clear property security is how we provide speed and certainty.
4) Can I use a second mortgage while I apply to set aside a statutory demand?
Yes. Some clients secure funds to remove immediate pressure while pursuing legal steps. Speak with your lawyer about the legal strategy; we handle the funding.
5) What loan sizes and terms are available?
We can structure facilities to borrow up to $10 million, subject to assessment, security, and exit strategy. Terms are short and tailored to your timeline, with interest options around an interest rate of 11.95% depending on scenario.
