Balloon coming due? See your options.
At the end of an equipment finance term, the balloon (residual) falls due. You've got three moves — refinance it, pay it out, or trade up. This tool helps you weigh them.
A balloon catches a lot of owners by surprise at the end of a term. The good news is you've got options, and planning a couple of months out gives you the most. Enter your balloon amount and see an indicative repayment to refinance it — then talk to us about the smartest path for your situation.
Balloon coming due? See your options.
At the end of the term the balloon falls due. You've got three moves — refinance it, pay it out, or trade up. See an indicative refinance repayment and weigh them up.
Estimate only, excluding fees and charges, and not a quote. Refinancing is subject to lender assessment. Watch for early-exit fees on your existing facility — we'll check them. General information, not financial or credit advice.
Keep the asset, spread the balloon
Refinancing rolls the balloon into a new facility so you keep using the asset without a big lump-sum hit. It's the most common move when the asset still earns its keep and you'd rather protect cash flow.
Example: a $30k balloon falling due
Say you've got a $30,000 balloon due. Refinancing it over 3 years on a chattel mortgage at around 7.5% p.a. comes to roughly $940 a month, so you keep the asset without finding the lump sum. Your other moves are to pay it out if you've got spare cash, or trade up into a newer asset. These are indicative estimates only, exclude fees, and aren't a quote — your repayment depends on the rate, term and the lender's assessment.
A couple of months out is the sweet spot
Sorting it early means you're not forced into a rushed payout. It also gives time to compare lenders and check the exit terms on your existing facility, so you move on your terms, not the deadline's.
Mind the early-exit costs
Some facilities carry early-exit or termination fees, so it's worth understanding those before you refinance or pay out. We'll read the fine print on your existing deal and tell you whether refinancing genuinely stacks up.
Sometimes a newer asset is the smarter move
If the asset is getting tired, the balloon falling due can be the natural point to trade up rather than refinance the old one. We can roll the change into a single facility so you stay in something reliable. We'll weigh it honestly against simply refinancing what you have.
Competitive rate and the right structure
Whichever path suits you, we compare a panel of commercial lenders for a competitive rate and set the term and any new balloon so the repayment fits your cash flow. We arrange these on a chattel mortgage; we don't do hire purchase or finance lease. Any new facility is subject to the lender's assessment.
Common questions
You rarely have to find the lump sum in cash. Most owners refinance the balloon into a new facility and keep the asset, or trade up into a newer one. Get in touch before it's due and we'll line up the options.
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