What Is a Payout Figure on Vehicle & Equipment Finance? (2025 Guide)
Payout figure explained for vehicle and equipment finance – Switchboard Finance
What Is a Payout Figure on Vehicle & Equipment Finance?
A payout figure is the exact settlement amount your lender will accept to close your finance on a specific date — and it’s usually higher than your statement balance once interest, fees and any balloon payment are included.
You’ll normally request it when you’re selling, trading-in, refinancing or consolidating loans under asset finance. It will usually show a “valid until” date.
If your email says: “Your payout figure is $43,870.12, valid until 30 November”, that number is the lender’s date-specific settlement figure — not the everyday “balance”.
Also called: payout letter settlement figure discharge figure
| Term | What it means | Why it changes |
|---|---|---|
| Statement balance | A snapshot number on your account | Moves with repayments, timing and posting cycles |
| Payout figure | The exact settlement amount for a specific date | Adds interest-to-date, fees, and any residual value / balloon if applicable |
1. Payout Figure vs Balance (the mistake that creates shortfalls)
A payout figure is the amount your lender wants to fully close the contract on a particular date. It normally includes principal remaining, interest to the payout date, plus any fees the contract allows when you exit early.
With asset finance, two loans with the same balance can produce very different payouts if the structure is different (for example, a chattel mortgage with a balloon vs principal-and-interest).
Your statement shows $38,000. You request a payout for 30 June because you want to refinance into sharper low doc vehicle finance. The payout comes back $39,150 because it includes interest-to-date and an exit/admin fee that won’t show on a basic balance screen.
- Balance = snapshot number.
- Payout figure = settlement amount for a specific day.
- The “gap” is usually interest + fees + balloon/residual if you have one.
2. When to request a payout figure (and what to check)
You generally request a payout when you’re selling, trading-in, refinancing, or consolidating multiple contracts. The key detail people miss: payout figures often have a short validity window.
If you’re moving into sharper equipment finance, a written payout lets you model the real “stay vs switch” cost (including fees) instead of guessing.
- You’re selling/trading the asset.
- You’re refinancing or consolidating loans.
- Your accountant is modelling scenarios pre-EOFY.
A contractor requests a payout, then compares: roll the shortfall into the new loan, pay part in cash, or move both machines under a specialist equipment finance policy.
3. What a payout figure usually includes (fees + balloon)
Every lender’s formula differs, but the building blocks are consistent: principal remaining, interest-to-date, and any break/admin fees permitted under your contract.
If you have a balloon payment or residual value, the payout will usually treat it as payable to fully clear the agreement.
- Principal remaining
- Interest to the payout date
- Exit/admin/break costs (if the contract allows)
- Balloon/residual (if applicable)
A transport business has a truck loan with a large balloon due later. When they request a payout to refinance and add another truck, the quote effectively “pulls forward” that balloon — so the broker structures the move using business loans plus asset funding, rather than pretending the balloon doesn’t exist.
4. Using payout figures safely (refinance + cash flow)
A payout figure is a tool — not a green light to refinance everything. The decision should improve your total position (repayments, term fit, and overall cash flow), not just the headline rate.
Often the smartest move is: keep a good asset loan in place and add the right cashflow facility instead (for example, a business line of credit).
A plumbing business had four vehicle loans across three lenders. We obtained payout figures, then mapped a cleaner structure using low doc asset finance plus a separate line of credit for running costs. Repayments became predictable and the owner knew what each product was doing.
- Get written payout figures (expiry date included).
- Model “stay vs switch” including fees and term fit.
- Separate asset purchases from day-to-day funding.
We review payout figures before refinances and upgrades, and we’ll show how they interact with working capital loans and invoice finance.
If you’re refinancing or upgrading under asset finance, treat the payout figure as the “true exit cost” for a specific date — then compare it against the real benefit (not just a lower repayment).
Simple rule: don’t roll a payout into a longer term unless it genuinely improves cash flow and matches the asset’s working life. If you’re fixing timing pressure, look at a line of credit or the broader cashflow system guide: WCL + LOC + Invoice Finance.
5. Payout Figure FAQs (the questions people Google)
Short answers first — with links to the glossary terms if you want the deeper definitions.
No. A balance is a snapshot. A payout figure is the date-specific settlement amount to close the contract, typically including interest-to-date, fees, and any balloon payment.
Commonly: principal remaining, interest-to-date, break/admin fees (if allowed), and any residual value or balloon required to fully clear the agreement.
Usually a short window (your letter/email will show “valid until”). If it expires, the lender recalculates interest and fees — which can change your cash flow plan if you’re mid-refinance.
In most cases, yes — a balloon payment is part of what clears the contract, so it’s treated as payable at payout (unless the lender states otherwise).
Often yes — but make sure the new term matches the asset’s working life and you’re not masking pressure that’s better solved with a separate working capital loan or invoice finance.
