Asset Refinance
Asset Refinance is the process of replacing an existing Asset Finance contract — such as a Chattel Mortgage, Hire Purchase, or Finance Lease — with a new loan. Businesses refinance to reduce repayments, improve cashflow, extend the Term Length, or consolidate debt.
Refinancing typically involves paying the lender’s Payout Figure, settling the account, and releasing PPSR security before switching to a new facility.
Why It Matters
Asset Refinance can significantly improve business cashflow across the Tradie Hub, Truckie Hub, Café Hub, and Whitecoat Hub.
Businesses commonly refinance when they:
- need lower repayments due to cashflow changes
- want to release equity from an asset
- prefer a longer term for budgeting
- are coming to the end of a loan with a Balloon Payment or Residual Value
- want better rates or lender terms
Refinancing is especially popular with vehicle and equipment-heavy industries, supported through the Business Owners Finance Hub.
How Asset Refinance Works
- You request a payoff via a formal Payout Figure.
- The lender calculates remaining principal + any Exit Fees or break costs.
- The existing loan is closed at Settlement.
- The new lender registers a replacement PPSR.
- Your repayments continue under the new contract.
Refinance can involve switching to different structures like extending term length or adjusting repayments based on updated Fixed or Variable Rates.
Benefits of Asset Refinance
- Lower monthly repayments
- Better interest rate or structure
- Extended loan term
- Balloon refinance (paying out or reducing balloon)
- Ability to restructure for tax or entity changes
These strategies are often used alongside low doc approvals such as Low Doc Asset Finance and blogs like Low Doc Car Loans (ABN).
Related Switchboard Resources
For official business finance information, see business.gov.au.