Received a statutory demand?

A statutory demand is not an ordinary letter of demand. It is a formal legal step that starts a strict clock. If the company does not pay the debt, reach an agreement with the creditor or apply to the court to set the demand aside within the time allowed, generally 21 days from service, the law presumes the company is insolvent. The creditor can then apply to have the company wound up.

That is why the first rule is simple: do not put it in a drawer.

In the first 48 hours

1. Note the date it was served and count forward 21 days. Diarise it in more than one place.
2. Call a lawyer who handles insolvency or commercial disputes. This is not optional, especially if any part of the debt is disputed, because applications to set aside have strict time limits.
3. Check the amount. Is it correct? Are there credits, offsets or disputes?
4. Decide the path with your adviser: pay, negotiate, or challenge.
5. If paying is the answer, line up funding immediately, so money is not the reason the deadline is missed.

When the clock matters more than the reading, send your enquiry first. It takes about 60 seconds.

How fast funding helps

Where the debt is genuine and paying or settling is the right course, funding removes the time pressure. With property security, approval within the hour is common and funds within 24 hours is possible, with payment made directly to the creditor or their lawyer. For smaller debts with strong bank statements, unsecured funding can work just as fast.

Debt size and situation	Usual fast route
Smaller, business trading well	Unsecured funding on bank statements
Larger, or other debts building	Property-secured, no valuation, interest prepaid or added
Several creditors at once	Fast debt consolidation

When a demand is a symptom

A statutory demand often means other pressure is building too: ATO debts, supplier arrears, short-term loans. Paying one creditor while others pile up can just move the problem. Your adviser can help you look at the whole picture, and ASIC publishes guidance for directors on insolvency and their duties. Funding works best as part of a plan, not instead of one.

A worked example (illustrative)

A small civil contractor is served a statutory demand by an equipment hire company for about $86,000 in overdue hire. The debt is genuine. The director’s lawyer confirms paying is the best course. The director owns a home with equity, enquires the same day and is approved within the hour for a caveat loan with interest added. The hire company is paid directly within two days, well inside the deadline, and the director then works with an accountant on the cash flow that caused it.

Read more in our guide to statutory demands and the 21-day clock.

What to have ready

Most delays come from documents that are not ready when they are asked for. Line these up before you enquire:

• The statutory demand and the date it was served
• Your lawyer’s advice on whether to pay, settle or challenge
• Creditor or lawyer payment details
• Property details or bank statements
• Company details and directors’ ID

What can slow it down

If funding is slower than expected, it is usually because of:

• Waiting to see if the creditor follows through
• Not getting legal advice on a disputed debt
• Other creditors not disclosed
• Directors who cannot sign promptly

Why accurate answers matter

Most delays we see trace back to something that changed after the first call: the amount went up, the turnover turned out lower, a second director appeared or the property was in a trust. None of these are deal-breakers. They just cost time when they arrive late. Put the real picture in the form, and the assessment can be done once, properly and quickly.

The short version

• Companies generally have 21 days to respond
• Doing nothing can lead to a winding-up application
• Get legal advice straight away, especially if the debt is disputed
• Fast funding can pay or settle a genuine debt well inside the deadline

Why this can move in hours, not weeks

There is nothing magic about fast funding. It is mostly about removing waiting time. We ask for the right evidence at the start instead of drip-feeding requests, we do not need a valuation on property-secured loans, and documents are signed online rather than posted. That is why a decision within the hour is common and why money can be in your account within 24 hours. The part we cannot control is how quickly signatures and documents come back, so having them ready makes the biggest difference.

Ready to start the clock?

Tell us what you need and when you need it by. There is no credit check to enquire, nothing is passed around the market, and a human being, not an algorithm, reads it. Accurate answers on the form are the single biggest thing you can do to speed things up. See if you qualify.