Key highlights
- ATO debt does not always rule out car finance
- A documented, on-time payment plan is viewed favourably
- Overdrive compares 80+ banks and non-bank lenders
- Recent bank statements and ABN details help your case
- Soft check to quote, no credit-score impact
Carrying an ATO debt is common for busy businesses, and it does not always shut the door on vehicle finance. What matters most is how the debt is being managed and which lender you approach.
Does ATO debt stop car finance?
Not necessarily. Many mainstream banks are cautious about outstanding tax debt, but Overdrive compares a panel of 80+ banks and non-bank lenders, and some are willing to consider eligible applicants who owe the ATO. The size of the debt, whether it appears on your credit file, and how recently it arose all feed into the assessment.
Does an ATO payment plan help?
Lenders look far more favourably on a documented ATO payment plan that you have been meeting on time. Evidence of consistent instalments shows the debt is under control. An unmanaged or defaulting arrangement is harder, though it may still be possible depending on lender criteria and the overall strength of the business.
What do lenders want to see?
Expect to provide recent bank statements, an idea of your ABN age and GST position, and details of the payment arrangement. Strong, steady business income can offset the concern. For the tax treatment of any debt or interest, check with your accountant or registered tax adviser.
Simon Kendrick can review your situation and match it to lenders comfortable with ATO debt. Request an obligation-free Overdrive quote today. It is a soft check that won't affect your credit score.
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