Should You Use a Loan to Cover BAS or ATO Debt?
- Marketing Manager
- Jul 28
- 2 min read
Let’s be honest: BAS and ATO deadlines have a habit of sneaking up — especially when cash flow is already tight. You’re not alone if you've ever asked,
"Should I take out a loan to cover this?”
The short answer? It depends.
But there are a few things you should weigh before making the call.
First, Don’t Panic — Plan
ATO payment pressure can feel overwhelming, but the worst thing you can do is ignore it. Penalties grow fast, and your business credit can take a hit. Whether it’s a late BAS lodgement or a surprise tax bill, it’s worth stepping back to assess your position calmly.
The Good News? You Have Options
Some business owners dip into savings, others delay purchases or stretch supplier terms (which can get risky fast).
Another option that’s becoming more common? Short-term business funding.
This could mean a flexible working capital loan or a line of credit to manage seasonal dips or tax obligations — without burning through your operating funds. In the right situation, it can help smooth things out without derailing growth.
What to Watch For
Interest rates and terms: Not all loans are created equal. Know what you're signing up for.
Cash flow impact: Make sure the repayments won’t hurt more than the original debt.
Repayment flexibility: Look for options that let you pay early or adjust based on business activity.
So, Should You Use a Loan?
Only if it gives you breathing room — not another burden. The key is using funding strategically, not out of panic.
Curious what that could look like for your business?
We’ve pulled together a few options that work well for ATO and BAS catch-ups. You don’t have to apply — just explore what’s possible:
(And if you're already talking to the ATO about a payment plan, this could help you avoid defaulting.)
Want a second opinion on your situation?
We’re here to help — no pressure, no fluff.
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