Payout Figure
A Payout Figure is the total amount required to completely pay out an asset finance contract — such as a Chattel Mortgage, Hire Purchase, Finance Lease, or Operating Lease — before or at the end of the agreed Term Length.
It is commonly used when a business wants to upgrade a vehicle, refinance for a better rate, sell the asset, or complete an Early Termination.
Why It Matters
Understanding your payout figure helps you manage cashflow, refinancing, and asset upgrades across industries in the Tradie Hub, Truckie Hub, Café Hub, and Whitecoat Hub.
Your payout figure may include or interact with:
- a Balloon Payment (Chattel Mortgage / HP)
- a Residual Value (Finance Lease)
- interest adjustments
- remaining principal
- lender break fees
Once paid out, lenders release the PPSR security so the asset can be sold or refinanced.
How It Works
- You request a payout figure from your lender (usually valid for 7–14 days).
- The lender calculates remaining principal plus interest adjustments.
- If applicable, a balloon or residual is added.
- You pay the figure at Settlement.
- The lender removes the PPSR security and closes the account.
This process is common when upgrading or refinancing through the Business Owners Finance Hub or switching to a new structure via Equipment Finance or Vehicle Finance.
What Affects the Payout Figure?
- how far you are into the loan term
- whether the contract uses a Fixed Rate or Variable Rate
- balloon or residual structure
- lender discharge or break fees
- interest rebate formula
These concepts are also covered in Switchboard blogs such as Are Low Doc Equipment Loans Worth It? and Equipment Finance Application Mistakes.
Related Switchboard Resources
For tax treatment of asset payouts, see ato.gov.au.