Asset Finance Refinance Approval Timeline (2026): Payout Figure → Discharge → Settlement (Day 0–7)
Timeline card showing payout figure, discharge and settlement | Switchboard finance
🧾 payout figure · discharge · settlement · Day 0–7 ·
Business Owners Finance Hub · 2026
Most asset refinances don’t fail because “the deal is bad”. They stall because one step is missing: the payout figure isn’t current, the discharge isn’t lodged, or settlement isn’t booked. This is the clean Day 0–7 sequence — across vehicles and equipment — so you know who does what and when.
If you want the core concept first, read: What Is a Payout Figure?. Then come back to this timeline and run it like a checklist.
1) The Day 0–7 refinance sequence (what happens first, second, third)
The refinance timeline is basically a hand-off chain. Approval can be quick — but settlement only happens after the outgoing lender confirms the payout and processes the discharge.
If you skip the sequence, the consequence is “pending” status with no clear ETA. Use this table to see where your deal is sitting and what the next dependency is.
| Day | Step | Who owns it | What “good” looks like | What delays it |
|---|---|---|---|---|
| Day 0 | Payout figure requested | You / broker → outgoing lender | Payout issued with expiry date + exact account details | Old payout expired, wrong contract number, multiple facilities on the one asset |
| Day 1–2 | Credit assessment + approval | New lender | Approval aligned to asset type + term + limit | Mismatch between requested amount and payout, unclear purpose (refi vs top-up) |
| Day 2–4 | Discharge initiated | Outgoing lender | Discharge authority accepted + processing started | Missing authority, identity mismatch, payout updated after discharge starts |
| Day 4–6 | Settlement booked | New lender / broker | Settlement date confirmed within payout validity window | Payout expires before booking, lender queues, incomplete settlement instructions |
| Day 6–7 | Settlement + closure confirmation | New lender pays out → outgoing lender closes | Outgoing account shows “paid out” and closure in progress | Shortfall due to fees/interest accrual, payout updated same day, timing across banks |
2) The 2 biggest bottlenecks (and how to prevent “pending”)
Two steps create most delays: payout figures and discharges. Everything else tends to move once those two are clean and current.
If you don’t manage these, the consequence is wasted momentum — the lender is ready, but settlement can’t be actioned. Use these “do this now” checks.
- Confirm payout expiry: settlement must be booked inside the validity window.
- Confirm what the payout includes: interest-to-date + any exit fees or admin items.
- Confirm if it’s one asset / multiple contracts: mismatches create last-minute shortfalls.
- Lodge authority early: don’t wait until “approval” to start the discharge chain.
- Keep settlement instructions simple: one clear payout destination + reference.
- Plan for timing: discharge teams can be slower than credit teams.
If you want the separate “proof pack” for lenders (documents only), use: Asset Finance Refinance Documents Checklist (2026). Different intent: that’s the paperwork; this post is the Day 0–7 sequencing.
3) Refi vs restructure vs top-up (why the label changes the timeline)
A refinance is “pay out lender A with lender B”. A restructure is “change terms with the same lender”. A top-up adds extra funds — which often triggers extra checks and can extend timing.
If you call a top-up a “refi”, the consequence is friction later: payout and settlement instructions won’t match the approval structure. Name the job correctly upfront so credit, discharge, and settlement are aligned.
- Pure refi (speed focus): keep the request tight to the payout amount + clean settlement booking.
- Top-up (cashflow focus): expect extra questions because the lender is sizing the new limit.
- Cashflow alternative: sometimes the cleanest fix is not touching the asset — it’s using a flexible facility.
If the real goal is cashflow relief (not swapping the asset loan), compare: Asset Finance vs Business Line of Credit (2026) and the core money page: Business Line of Credit. For the common structural pitfalls, use: Refinance vs Restructure vs Top-Up (2025).
Asset finance refinance timing is a chain: Payout Figure → discharge queue → settlement booking. Most “pending” deals are missing one of those steps — not failing credit.
The consequence of ignoring the sequence is a stalled settlement: expired payouts, late discharge lodgements, and same-day shortfalls. If your real goal is cashflow (not swapping the asset loan), consider the Business Line of Credit path.
FAQ
Because approval is only one link in the chain. Settlement depends on the payout figure being current and the outgoing lender processing the discharge in time to book settlement.
It varies by lender and contract, but it usually has an expiry date. If settlement is booked outside that window, a new payout is required and timing can reset.
Early. If you wait for approval to lodge it, the outgoing lender’s discharge queue becomes the bottleneck and your settlement date slips.
Not always. If the asset loan is fine and you just need flexibility, a line of credit can be cleaner than touching the asset facility. The right answer depends on your servicing and timing needs.
The new lender pays out the old contract, and the outgoing lender closes the account. You’re waiting for confirmation the old facility is cleared and the refinance is fully live. For the definition, see Settlement.
Disclaimer: This content is general information only and isn’t financial, legal, or tax advice.
