Exit Fees
Exit Fees are charges applied when you end an Asset Finance contract early. They may apply when terminating a Chattel Mortgage, Hire Purchase, Finance Lease, or Operating Lease before the agreed Term Length.
Exit fees usually form part of the Payout Figure and are separate from balloons, Residual Values, and settlement costs.
Why It Matters
Businesses across the Tradie Hub, Truckie Hub, Café Hub, and Whitecoat Hub often exit finance early to upgrade assets, refinance to lower rates, or restructure debt.
Exit fees are important because they impact:
- asset upgrade timing
- refinancing decisions
- cashflow planning
- the true cost of Early Termination
Exit fees vary by lender and are typically low for standard business-use asset loans, but may be higher for fixed-rate contracts with break costs.
How Exit Fees Work
- You request a payout figure from the lender.
- The lender calculates remaining principal + interest adjustments.
- Exit fees and break fees (if tied to Fixed Rates) are added.
- Any balloon or residual becomes payable.
- Upon payment, PPSR is released.
Exit fees form part of the settlement when selling or refinancing through the Business Owners Finance Hub.
Common Types of Exit Fees
- Admin discharge fee: small processing fee
- Break fee: applies mostly to fixed-rate contracts
- Early termination fee: lender-specific charge
- Breach / default exit fee: if contract terms were not met
These fees sit alongside concepts explored in Lease vs Buy Equipment and Equipment Finance Application Mistakes.
Related Switchboard Resources
For official business guidance, visit business.gov.au.