Settlement
Settlement is the finalisation of a finance facility, where funds are transferred to a supplier, lender, or business account. Settlement occurs in Asset Finance (vehicles, equipment), Business Lines of Credit (LOCs), Working Capital Loans, and Invoice Finance drawdowns once all approvals, documents, and security checks are complete.
It is closely linked to Drawdowns, Facilities, PPSR security, and Credit Limit.
Why Settlement Matters
Settlement is the point at which ownership of an asset or access to funds legally transfers. For business owners in the Tradie Hub, Truckie Hub, Café Hub, Whitecoat Hub, and Business Owners Finance Hub, it signals:
- access to purchased vehicles, machinery, or equipment
- funds availability for immediate operational use
- triggering interest and fees from drawdowns
- completion of legal obligations, including PPSR registration
How Settlement Works
- All approvals and credit checks are completed by the lender.
- Documents (loan agreements, guarantees, PPSR registrations) are executed.
- Funds are transferred to the supplier, business, or dealer account.
- For Asset Finance, ownership documents are lodged, and the PPSR is updated.
- Repayments or interest begin from the settlement date.
Settlements may be immediate or take 1–3 business days depending on the lender and facility type.
Related Switchboard Resources
For official guidance on business funding: business.gov.au