September presents strategic timing for Australian businesses to review existing equipment finance agreements before the new financial year commences on 1 October. An annual finance review identifies refinancing opportunities, balloon payment optimization, multi-agreement consolidation potential, and lender relationship assessment that can deliver substantial annual savings and improved cash flow flexibility.
This complete guide examines systematic approaches to conducting equipment finance reviews, evaluating refinancing opportunities, comparing current agreements against market conditions, and implementing changes that strengthen financial positioning whilst maintaining operational capability.
Why September is Strategic for Finance Reviews
The period between financial year-end (30 June) and new financial year commencement (1 October) creates an optimal window for finance review and restructuring.
Timing advantages of September reviews:
1. Financial year clarity:
By September, businesses have completed tax returns, finalized accounts, and understand FY2025-26 financial performance. This clarity enables informed decision-making about finance restructuring based on actual outcomes rather than projections.
2. New financial year planning:
Changes implemented in September take effect as the new financial year begins. Refinancing delivering $1,500 monthly savings starting October 1 provides full twelve months benefit in FY2026-27–maximizing annual impact.
3. Market conditions stabilized:
Following EOFY equipment purchasing surges (May-June) and mid-year rate adjustments (July), September typically brings stabilized lending conditions with normal processing timelines and competitive rate environments.
4. Lender capacity availability:
Finance brokers and lenders operate at normal capacity in September (unlike EOFY period), enabling thorough assessment and favorable negotiation positions for creditworthy borrowers.
5. Budget preparation alignment:
Most businesses prepare FY2026-27 budgets during September-October. Refinancing outcomes determined by late September can be incorporated into budget forecasts with accuracy.
A Perth transport operator conducted September reviews annually for five consecutive years. Their systematic approach identified refinancing opportunities averaging $22,000 annual savings across their truck finance and equipment finance portfolio–total five-year benefit exceeding $110,000 through disciplined annual review practice.
Systematic Finance Review Methodology
Effective finance reviews follow systematic processes examining all existing agreements against current circumstances and market conditions.
Step 1: Comprehensive agreement inventory
Create detailed documentation of all current finance agreements:
| Agreement Details | Information Required |
|---|---|
| Lender and product | Current finance provider and product type |
| Asset financed | Equipment or vehicle specification |
| Original amount | Initial finance amount (date of agreement) |
| Current balance | Outstanding principal balance |
| Interest rate | Current rate (fixed or variable) |
| Monthly payment | Regular payment amount |
| Remaining term | Months remaining until completion |
| Balloon/residual | Final balloon payment amount (if applicable) |
| Agreement date | Original commencement date |
| Maturity date | Final payment due date |
| Early termination | Payout figure including fees |
Many businesses operate multiple finance agreements without comprehensive overview. A Brisbane contractor reviewing their position discovered nine separate agreements–they thought they had “five or six.” Consolidated understanding enabled strategic refinancing decisions impossible without systematic inventory.
Step 2: Calculate total annual cost
Determine true annual finance costs including:
- Total monthly payments across all agreements
- Annualized interest costs
- Ongoing fees (account-keeping, transaction fees)
- Insurance bundled with finance (if applicable)
- Projected balloon payments within next 12-24 months
Example calculation:
A business with four equipment finance agreements:
– Agreement A: $2,450/month, 18 months remaining, $45,000 balloon
– Agreement B: $1,820/month, 31 months remaining, no balloon
– Agreement C: $980/month, 9 months remaining, $12,000 balloon
– Agreement D: $1,650/month, 24 months remaining, $28,000 balloon
Total monthly: $6,900
Total annual: $82,800
Balloons due within 24 months: $85,000 (Agreements A, C, D)
Without systematic review, the $85,000 balloon obligation within 24 months might not be adequately planned for–creating cash flow pressure when multiple balloons mature simultaneously.
Step 3: Assess current market rates
Compare existing agreement interest rates against current market conditions for equivalent equipment and borrower profiles.
Typical market rates (September 2026):
| Equipment Category | Strong Credit Profile | Standard Credit | Secured Asset Premium |
|---|---|---|---|
| Light commercial vehicles | 6.8-7.5% | 7.5-8.4% | 8.5-9.5% |
| Trucks and heavy vehicles | 7.2-8.1% | 8.1-9.2% | 9.2-10.5% |
| Construction equipment | 7.5-8.5% | 8.5-9.5% | 9.5-11.0% |
| General equipment | 7.0-8.0% | 8.0-9.0% | 9.0-10.5% |
| Agricultural machinery | 7.4-8.4% | 8.4-9.4% | 9.4-10.8% |
Businesses with agreements commenced during 2023-2024 (higher rate environment) may find current rates 0.8-1.5% below existing agreement rates–creating substantial refinancing opportunities.
Step 4: Evaluate business circumstances changes
Financial position changes since original finance approval may improve refinancing terms:
- Revenue growth: Higher turnover demonstrates business strength
- Profitability improvement: Stronger margins indicate reduced risk
- Asset equity: Equipment value versus outstanding balance
- Payment history: Perfect payment record strengthens negotiation
- Credit profile enhancement: Reduced other liabilities or improved credit score
A Melbourne contractor originally financed excavators at 9.2% in 2024 when their business had two years operating history and $1.8M revenue. By September 2026, revenue reached $3.4M with consistent profitability and perfect payment history. Refinancing secured 7.8% rate–1.4% reduction delivering $4,800 annual saving on $320,000 outstanding balance.
Refinance vs. Retain Decision Framework
Not all agreements benefit from refinancing. Systematic evaluation determines whether refinancing delivers net benefit after considering costs and disruption.
When refinancing typically makes sense:
1. Significant interest rate reduction available (0.8%+ lower)
Rate reductions exceeding 0.8% on substantial balances (over $200,000) typically justify refinancing costs.
Example: $400,000 outstanding balance at 9.5% currently, refinancing available at 8.3%:
– Current annual interest: ~$38,000
– Refinanced annual interest: ~$33,200
– Annual saving: $4,800
– Refinancing costs: ~$1,200-$1,800
– Net first-year benefit: $3,000-$3,600
2. Multiple balloon payments approaching
Agreements with balloons maturing within 12-18 months can be refinanced, incorporating balloon amounts into new agreements rather than finding cash for balloon payments.
3. Consolidation opportunities exist
Multiple agreements with different lenders create administrative complexity. Consolidating into single refinanced facility simplifies management and often improves terms.
4. Improved business circumstances enable better terms
Business growth, profitability improvement, or enhanced credit profile may secure significantly better rates and terms than original agreements.
When retaining existing agreements typically makes sense:
1. Remaining term is short (under 12-18 months)
Refinancing agreements near maturity rarely justifies costs. Exception: balloon payment approaching requiring refinancing regardless.
2. Interest rate difference is minimal (under 0.5%)
Small rate improvements on moderate balances don’t overcome refinancing costs and administrative effort.
3. Early termination fees are prohibitive
Some agreements include substantial break costs or early termination penalties exceeding refinancing benefits.
4. Current lender offers rate match or reduction
Before refinancing, approach current lender requesting rate reduction. Many lenders prefer retaining good customers through rate adjustments rather than losing accounts to competitors.
A Sydney business received 8.7% refinancing offer on equipment finance currently at 9.5%. Before proceeding, they contacted their existing lender explaining the competitive offer. The lender matched the 8.7% rate without refinancing costs–delivering full benefit without agreement disruption.
Market Rate Comparison Strategies
Obtaining current market rate information enables informed refinancing decisions and lender negotiations.
Approach 1: Commercial finance broker engagement
Specialized equipment finance brokers access multiple lenders’ current rates simultaneously. A single broker enquiry provides 3-6 lender rate indications within 24-48 hours.
Broker advantages:
– Multiple lender comparison without multiple applications
– Industry knowledge of competitive rate positioning
– Negotiation expertise potentially securing better terms
– Understanding of which lenders suit specific circumstances
Broker considerations:
– Commissions paid by lenders may influence recommendations
– Not all lenders work through broker channels
– Some borrowers prefer direct lender relationships
Approach 2: Direct lender enquiries
Contact 3-4 lenders directly requesting refinancing indications. Most major equipment finance providers offer indicative rates based on brief business and equipment information.
Direct approach advantages:
– No broker intermediary or commission influence
– Direct relationship with ultimate lender
– Potential for better rates (no broker commission built in)
Direct approach considerations:
– Multiple applications create credit enquiry records
– Time-intensive managing multiple lender interactions
– Less market knowledge compared to specialist brokers
Approach 3: Hybrid strategy
Engage both broker (for market overview and multiple options) and approach 1-2 direct lenders you prefer working with. Compare broker-sourced options against direct lender offers.
This hybrid approach provides comprehensive market assessment whilst maintaining direct lender relationships for preferred providers.
Balloon Payment Strategies and Refinancing
Balloon payments (residual values) represent substantial future obligations requiring strategic planning, particularly when multiple balloons approach simultaneously.
Balloon payment options at maturity:
Option 1: Pay balloon in cash
Use business cash reserves or asset sale proceeds to clear balloon, completing agreement without ongoing finance.
Advantages:
– Eliminates ongoing finance obligation
– Equipment becomes unencumbered asset
– No further interest costs
Disadvantages:
– Requires substantial cash (balloons typically 20-40% of original amount)
– Depletes working capital reserves
– May necessitate other asset sales to fund payment
Option 2: Refinance balloon amount
Structure new finance agreement for balloon amount, extending term and creating manageable monthly payments.
Example: $65,000 balloon due on truck finance:
– Refinance $65,000 over 36 months at 7.8%
– Monthly payment: ~$2,025
– Avoids $65,000 cash requirement
– Spreads cost across three years
Option 3: Trade equipment and refinance into new asset
Trade current equipment against new equipment purchase, with trade-in value paying balloon. Finance new equipment with fresh agreement.
Example: Excavator with $45,000 balloon due:
– Trade-in value: $62,000
– After balloon payment: $17,000 credit
– New excavator: $340,000
– Finance required: $323,000 (with trade equity)
– Lower finance amount reduces payments vs. financing full $340,000
Option 4: Extend agreement term
Some lenders allow balloon refinancing within existing agreement through term extension–simplest administrative option if current lender offers competitive rates.
Strategic balloon planning:
Rather than addressing balloons reactively at maturity, proactive businesses review balloon timing during annual finance reviews.
A Queensland contractor had four agreements with balloons maturing within eight months of each other–total $142,000 cash requirement. September review identified this concentration. They refinanced three agreements (staggering new balloon dates across 24 months) whilst retaining one with imminent balloon they could manage. This restructuring converted $142,000 eight-month cash requirement into $38,000 immediate plus two further $35,000-$40,000 payments staggered across two years–manageable from operations without cash flow crisis.
Consolidating Multiple Finance Agreements
Businesses operating multiple equipment finance agreements often benefit from consolidation into single facilities.
Benefits of consolidation:
1. Administrative simplification
Single agreement replaces multiple:
– One monthly payment instead of several
– One lender relationship to manage
– Single documentation set
– Simplified annual compliance and reporting
2. Potential rate improvement
Larger consolidated balances sometimes attract better rates than multiple smaller agreements.
3. Aligned maturity dates
Consolidation creates single maturity date rather than staggered maturities requiring individual management.
4. Uniform terms and conditions
Single set of terms replaces varied conditions across multiple lenders.
5. Simplified refinancing in future
One agreement is easier to refinance than multiple separate arrangements.
Consolidation example:
A business with six separate equipment finance agreements:
| Current State | Monthly Payment | Rate | Balance | Maturity |
|---|---|---|---|---|
| Agreement A | $1,850 | 8.9% | $42,000 | 18 months |
| Agreement B | $2,240 | 9.2% | $67,000 | 27 months |
| Agreement C | $980 | 8.5% | $14,000 | 11 months |
| Agreement D | $1,420 | 9.5% | $38,000 | 22 months |
| Agreement E | $3,100 | 8.8% | $112,000 | 33 months |
| Agreement F | $1,650 | 9.1% | $48,000 | 24 months |
| Total | $11,240 | – | $321,000 | – |
Consolidated refinancing:
– Total balance: $321,000
– New rate: 8.2% (improved from 8.5-9.5% range)
– Term: 48 months
– Monthly payment: $7,850
– Monthly saving: $3,390
– Annual saving: $40,680
Consolidation delivered $40,680 annual saving whilst simplifying administration from six separate lender relationships to one.
Consolidation considerations:
Not all situations suit consolidation:
- Varying asset ages: Consolidating new equipment with old equipment may result in extended terms on older assets (paying finance on equipment beyond useful life)
- Different asset types: Mixing vehicle and equipment finance may complicate lender assessment
- Early termination costs: Fees to terminate multiple existing agreements might exceed consolidation benefits
- Loss of flexibility: Single large agreement provides less flexibility than multiple smaller facilities for partial early repayment
Switching Lenders vs. Existing Lender Retention
Finance reviews raise questions about whether to refinance with existing lenders or switch to new providers.
Advantages of retaining existing lenders:
1. Simplified process
Internal refinancing (rate adjustment or restructure within existing lender) typically requires:
– Minimal documentation (lender has existing records)
– Faster approval (2-3 days vs. 1-2 weeks for new lender)
– No application fees or establishment costs
– Continued relationship and service familiarity
2. Relationship use
Established payment history provides negotiation use: “We’ve paid every payment on time for three years. Can you match this competitive rate to retain our business?”
3. Existing lender knowledge
Current lender understands your business, equipment, and track record–reducing assessment risk and potentially enabling better terms.
Advantages of switching lenders:
1. Potentially better rates
New lenders competing for business may offer more aggressive pricing than existing lender retention rates.
2. Improved service
Businesses dissatisfied with current lender service, responsiveness, or flexibility benefit from switching to providers better aligned with their needs.
3. Relationship diversification
Spreading finance across multiple lenders reduces concentration risk. If one lender changes policies or appetite, alternative relationships exist.
4. Specialized lender expertise
Switching to lenders specializing in specific asset types (refrigerated transport, construction equipment, agricultural machinery) may provide better terms and industry understanding.
Practical approach:
Obtain external refinancing offers, then present them to existing lender: “We’ve received 7.8% from another lender. We prefer continuing our relationship if you can match this rate.”
Many lenders match competitive offers for creditworthy customers with strong payment histories rather than lose accounts. This approach provides refinancing benefits without switching disruption–best of both approaches.
Documentation Requirements for Refinancing
Refinancing applications require documentation similar to original finance applications, though often simplified for businesses with established track records.
Standard refinancing documentation:
1. Business financial information:
– Last two years financial statements
– Current management accounts (ideally within 60 days)
– Tax returns (last two years)
– BAS statements (most recent four quarters)
2. Equipment details:
– Asset specifications and current condition
– Current market valuations (for major assets)
– Service/maintenance records demonstrating care
– Usage records (hours or kilometers)
3. Current finance documentation:
– Existing finance agreements being refinanced
– Payout figures from current lenders
– Payment history statements
4. Business verification:
– Business registration/ABN verification
– Director identification
– Company structure documentation
– Authority to borrow resolutions (for companies)
5. Credit authority:
– Consent for credit checks
– Personal guarantees (typically required for businesses under $5M turnover)
Documentation preparation tips:
Start early: Gathering financial statements, tax returns, and equipment information takes time. Begin documentation compilation 2-3 weeks before intending to apply.
Organize systematically: Create digital folder with all documents clearly labeled. Lenders and brokers appreciate organized applications–processing faster with complete documentation.
Update management accounts: Financial statements from 12-18 months ago don’t reflect current position. Prepare current management accounts showing recent trading performance.
Prepare equipment summaries: For multiple asset refinancing, create spreadsheet listing each asset, original cost, current value estimate, condition, and utilization–simplifys lender assessment.
A Melbourne business prepared comprehensive documentation before engaging brokers or lenders. When they identified preferred refinancing option, complete documentation enabled approval within four business days. Businesses scrambling for documents mid-process experience extended timelines and sometimes miss optimal rate windows.
Timing Considerations Before October 1
September reviews targeting implementation before new financial year require realistic timeline planning.
Typical refinancing timeline:
Week 1-2: Assessment and market research
– Complete agreement inventory
– Calculate current total costs
– Research current market rates
– Identify potential refinancing candidates
Week 3: Application preparation
– Gather required documentation
– Engage brokers or contact lenders
– Submit refinancing applications
Week 4-5: Approval process
– Lender assessment and credit review
– Conditional approvals and documentation requests
– Final approval confirmation
Week 6: Settlement and implementation
– Review and sign new documentation
– Arrange payout of existing agreements
– Confirm new payment arrangements
– Verify direct debit setup
Total: 6-7 weeks from initial assessment to completed refinancing
For implementation before 1 October, businesses should commence reviews by mid-August, with applications submitted by early September.
Last-minute September refinancing (starting late September) risks incomplete processing before the new financial year, delaying benefits and potentially missing favorable rate windows.
Questions and Answers
Q: How much interest rate reduction justifies the effort and cost of refinancing equipment finance agreements?
A: Generally, interest rate reductions of 0.8% or greater on balances exceeding $150,000-$200,000 justify refinancing costs and administrative effort. Calculate specific circumstances using actual numbers: a 1.0% rate reduction on $300,000 outstanding balance saves approximately $3,000 annually. Refinancing costs (application fees, early termination fees, establishment costs) typically range $800-$2,000, delivering net first-year benefit $1,000-$2,200 with full ongoing benefit in subsequent years. Smaller rate differences (0.3-0.5%) on moderate balances may not overcome costs unless consolidating multiple agreements or addressing balloon payments simultaneously. However, rate differential isn’t the only consideration–consolidation benefits (simplified administration, single lender relationship), balloon payment management, and improved terms may justify refinancing even with modest rate improvements. Every situation differs; perform calculations based on actual outstanding balances, rate differences, remaining terms, and total costs. For substantial equipment finance portfolios ($500,000+), even 0.5% improvements deliver meaningful annual savings justifying professional review.
Q: Should businesses always refinance with new lenders offering the lowest rates, or is there value in staying with existing lenders?
A: Not necessarily always switch to lowest-rate lender. Best practice involves obtaining competitive external offers, then presenting them to existing lenders before switching. Many lenders match or nearly match competitive rates to retain creditworthy customers with strong payment histories–delivering rate benefits without switching disruption. Existing lender advantages include simplified documentation, faster approval, continued relationship, established service understanding, and often waived establishment fees. However, if existing lender won’t match competitive rates, service has been poor, or specialized lenders offer substantially better terms and industry expertise, switching makes sense. Some businesses strategically maintain multiple lender relationships (spreading risk and accessing different strengths) whilst others prefer consolidated relationship with single provider. Consider factors beyond just interest rate: lender service quality, responsiveness, flexibility for future needs, industry specialization, technology platforms, and relationship value. A lender offering 0.3% higher rate but exceptional service, flexible terms, and genuine partnership approach may deliver better overall value than lowest-rate provider with poor service and rigid policies. Evaluate total relationship value, not rate alone.
Q: What happens to existing equipment when refinancing–do businesses need to provide new security or can refinanced agreements use existing equipment?
A: Refinancing typically uses existing equipment as security for new finance agreements. The refinancing process involves: obtaining payout figures from current lender (amount to clear existing agreements), new lender advancing funds to pay out existing finance, existing lender releasing security interest (removing their registration from PPSR–Personal Property Securities Register), new lender registering security interest over equipment on PPSR. The equipment remains in your possession and operation throughout–no physical changes occur. However, refinancing works differently depending on equity position: if equipment current market value exceeds payout amount (positive equity), refinancing is straightforward. If payout amount exceeds equipment value (negative equity), refinancing becomes challenging–new lender must finance more than equipment’s security value, often requiring additional security or higher rates. For businesses refinancing multiple agreements with mixed equity positions, lenders typically assess portfolio-wide security coverage. Some refinancing involves trading current equipment for new assets (trade-in paying payout amount, financing new equipment)–essentially refinancing into upgraded assets. This works well for equipment approaching replacement age. Either way, existing equipment continues operating whilst finance restructures behind the scenes.
Helpful Australian Resources
Australian Financial Complaints Authority (AFCA)
Independent dispute resolution for finance complaints, including equipment finance and refinancing disputes.
Website: www.afca.org.au
Finance Brokers Association of Australia (FBAA)
Professional association representing finance brokers, with broker directory and consumer resources.
Website: www.fbaa.com.au
Australian Taxation Office (ATO)
Information on tax treatment of equipment finance, refinancing implications, and business deduction considerations.
Website: www.ato.gov.au
Australian Small Business and Family Enterprise Ombudsman
Support for small businesses regarding finance arrangements, unfair contract terms, and business advocacy.
Website: www.asbfeo.gov.au
Australian Securities and Investments Commission (ASIC)
Regulatory information about responsible lending, credit licensing, and consumer protections for business finance.
Website: www.asic.gov.au
Annual Finance Review Checklist
Use this systematic checklist to conduct comprehensive equipment finance reviews:
Agreement Inventory (1-2 weeks before review):
– ☐ List all current equipment finance agreements
– ☐ Document lender, rate, balance, payment, and maturity for each
– ☐ Calculate total monthly and annual finance costs
– ☐ Identify balloon payments due within next 24 months
– ☐ Obtain current payout figures from all lenders
– ☐ Review payment history for each agreement
Market Research (2-3 weeks before review):
– ☐ Research current market rates for equivalent equipment and credit profile
– ☐ Identify 2-3 potential refinancing lenders or engage finance broker
– ☐ Assess whether business circumstances have improved since original finance
– ☐ Review current lender relationships and service satisfaction
– ☐ Calculate potential savings from rate reductions
Refinancing Assessment (3-4 weeks before review):
– ☐ Determine which agreements are refinancing candidates (balance, rate, term)
– ☐ Evaluate consolidation opportunities for multiple agreements
– ☐ Assess balloon payment strategies (refinance, pay cash, trade equipment)
– ☐ Calculate refinancing costs (early termination fees, application fees, establishment costs)
– ☐ Perform net benefit analysis (savings minus costs)
Documentation Preparation (4-5 weeks before review):
– ☐ Gather last two years financial statements and tax returns
– ☐ Prepare current management accounts
– ☐ Compile recent BAS statements
– ☐ Organize equipment details, valuations, and service records
– ☐ Prepare business verification documents
– ☐ Create equipment summary for multiple-asset refinancing
Lender Engagement (5-6 weeks before October 1):
– ☐ Submit refinancing applications or engage broker
– ☐ Provide complete documentation to minimize processing delays
– ☐ Review conditional approvals and address any requirements
– ☐ Present competitive offers to existing lender for rate matching opportunity
– ☐ Evaluate final offers and select preferred refinancing option
Implementation (6-7 weeks before October 1):
– ☐ Review and sign refinancing documentation carefully
– ☐ Verify payout arrangements with existing lenders
– ☐ Confirm new payment amounts and direct debit setup
– ☐ Update business financial records with new agreement details
– ☐ Verify PPSR registrations updated correctly
– ☐ Document annual savings achieved through refinancing
Ongoing (Post-refinancing):
– ☐ Monitor first 2-3 payments to ensure correct implementation
– ☐ Update FY2026-27 budget with revised finance costs
– ☐ Schedule next annual review for September 2027
– ☐ Maintain strong payment history supporting future refinancing
Working with TYG Finance for Equipment Finance Reviews
TYG Finance supports Australian businesses conducting annual equipment finance reviews and evaluating refinancing opportunities across equipment finance, truck finance, construction equipment finance, and fleet finance portfolios.
Our experience with finance review processes, lender rate positioning, and refinancing structuring helps businesses handle annual reviews systematically whilst identifying genuine opportunities for improved terms and cost reduction.
How we support finance review processes:
- Portfolio assessment: We review existing agreements identifying refinancing candidates based on rates, terms, and balances
- Market rate comparison: We provide current market rate information across multiple lenders simultaneously
- Consolidation analysis: We evaluate whether consolidating multiple agreements delivers net benefit
- Existing lender negotiation: We help structure approaches to current lenders for rate matching before switching
- Implementation coordination: We manage refinancing processes including documentation, approvals, and settlement
September timing advantage: Engaging finance reviews during September provides adequate timeline for implementation before the new financial year whilst avoiding EOFY congestion.
Ready to review your equipment finance portfolio? Contact TYG Finance to discuss systematic finance review and refinancing opportunities before FY2026-27 commences.
Contact TYG Finance today to arrange a comprehensive equipment finance portfolio review.
Important Disclaimer
This guide is provided for general informational purposes only and should not be considered financial, legal, or professional advice. Refinancing decisions depend heavily on individual circumstances, existing agreement terms, current market conditions, and business financial positions which vary significantly.
Interest rates, fees, terms, and refinancing costs described are indicative only and vary based on lender criteria, equipment type, credit profile, and market conditions. The savings examples provided are illustrative scenarios and should not be interpreted as typical outcomes or guarantees.
Before making refinancing or finance restructuring decisions, businesses should:
- Consult qualified accountants regarding financial implications and tax treatment
- Carefully review all existing agreement terms, including early termination provisions and break costs
- Obtain independent financial advice about specific circumstances and overall financial strategy
- Thoroughly review new agreement documentation before committing
- Understand total costs including fees, charges, and any changes to balloon payments or terms
- Verify that refinancing delivers genuine net benefit after all costs considered
- Assess impact on business cash flow and working capital
Refinancing is not suitable for all situations. Remaining with existing agreements may be preferable depending on remaining term, early termination costs, service relationship value, and marginal rate differences.
Finance applications are subject to lender approval and individual assessment. Approval is not guaranteed regardless of existing payment history or business performance.
TYG Finance is a commercial finance broker. We may receive commissions from lenders for successful refinancing arrangements. This guide does not constitute a recommendation to refinance existing agreements or switch lenders.
Every business’s circumstances differ. What suits one business may be inappropriate for another. Professional advice based on your specific situation is essential before making finance restructuring decisions.
Information current as of publication date and subject to change as market conditions and lender policies evolve.
About TYG Finance
TYG Finance is an Australian commercial finance broker specializing in equipment and vehicle finance solutions for businesses across diverse industries. We work with a panel of lenders to help businesses explore refinancing options and finance review strategies that may suit their specific circumstances and financial objectives.
Disclaimer: This article is provided for general information only. TYG Finance recommends seeking independent financial advice before making refinancing decisions.
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