A balloon payment due and no spare cash to cover it?
- A new loan for the residual, with non-bank funding often within 2 business days
- $20K to $1M, on a single vehicle or a balloon across several assets
- Sole traders, partnerships, companies and transport operators reaching the end of a business asset loan
- Utes, cars, trucks, trailers, plant and equipment, or a trade-up into a newer asset
- Full-doc (tax returns), low-doc or alt-doc (BAS, bank statements or an accountant's letter instead), and no-doc, depending on the lender
The final payment on the asset is due, and it is the largest one. When the loan was signed, a balloon kept the monthly repayment down. Now the term is ending and the lump sum has to be paid, and the cash is needed for wages, stock or the next job. Balloon payment refinance is a new loan that pays out the residual to your current lender, so you keep the asset and repay the balloon over a fresh term. Some businesses use the date to trade up into a newer asset instead. Joseph Farhat and his team can show you what each option costs, which lenders will consider your asset at its age, and what needs to happen before the due date.
Who we can help access finance
- Tradies with a ute or van whose balloon falls due this month and who want to keep the vehicle working.
- Owner-drivers and transport operators with a residual owing on a prime mover or trailer at the end of a 5 year loan.
- Businesses with balloons falling due on several vehicles or machines within a few months of each other.
- Contractors whose excavator or plant still has years of work left in it but has a lump sum owing.
- Companies that want to trade the asset in for a newer model and need to know how the balloon affects the new loan.
- Operators who missed a few repayments during the term and want to know whether the residual can still be refinanced.
How Balloon Payment Refinance Works
A balloon, also called a residual, is a set amount left owing when the regular repayments finish. It was agreed when the loan started. At the end of the term there are four common paths: pay it in cash, sell the asset and use the proceeds, refinance the balloon over a new term, or trade the asset in and finance a replacement. Refinancing keeps the asset in the business and turns one large payment into smaller regular ones. It also adds interest and fees that would not be paid if the balloon were covered in cash, and we set that total out for you before you decide.
The new lender asks your current lender for a payout figure, pays that amount on settlement, and takes security over the same asset. The new term is usually shorter than the first one, because the asset is older. Most lenders cap the age an asset can reach by the end of a loan, so a 6 year old truck or ute may be offered fewer years than a newer one would. Some lenders also want an inspection or a valuation, to check the asset is still worth more than the amount being refinanced.
Joseph Farhat and his team review the payout figure, the asset and your payment history, and match the file to a lender from a panel of 90+ bank, non-bank, and specialist lenders. We are a finance broker, not an accountant. How a refinance or trade-in is treated for GST and income tax, including any depreciation already claimed, is for your accountant to confirm.
What Lenders Assess for Balloon Payment Refinance
The payout figure
the exact balloon plus any interest or fees owing to your current lender on the settlement date.
Asset age and type
the year, make and model, and how old the asset will be when the new term ends.
Asset condition and value
kilometres, hours and wear. Some lenders inspect or value the asset before approving.
Payment history on the current loan
whether repayments were made on time over the term, and the reasons for any that were not.
Current trading
recent business bank statements or BAS showing the new repayment can be met alongside other commitments.
How much is owing against the value
where the balloon is larger than what the asset is worth, a lender may ask for a lump sum or extra security.
Time to the due date
a refinance arranged before the balloon falls due gives the most choice of lender.
The Balloon Payment Refinance Process: What to Expect
- Ask your current lender for a payout figure, then send it to Joseph Farhat and his team with the asset details and the due date.
- We set out the repayment and total cost of refinancing the balloon, and of trading up where that is an option, so you can compare them.
- With your go-ahead, the file goes to the lender most likely to fund your asset at its age. Each credit enquiry is recorded on your file, so we choose before we apply.
- The approval sets out rate, term and fees, plus any inspection needed. We take you through it before you sign.
- On settlement the new lender pays out your current lender, the old security is released, and your new repayments begin.
Indicative Finance Options
| Lender Type | Indicative Rate | Typical Loan Range | Loan Term | Key Consideration | Speed to Funding |
|---|---|---|---|---|---|
| Bank | From ~7.5% p.a. | $20K to $1M | 1 to 5 years | Newer assets and a clean payment history | 1 to 3 weeks |
| Non-Bank Lenders | From ~9.5% p.a. | $20K to $750K | 1 to 5 years | Older assets, low-doc files and some missed payments | Within 2 business days |
| Private Finance | Not typically used for balloon payment refinance. Available for unique scenarios only. | ||||
Indicative figures only. Actual rates and terms depend on your project, financial position, property location, and lender assessment at the time of application. Rates are subject to change.
Why borrowers choose Settled With Joe for balloon payment refinance
The full cost is shown
the extra interest and fees of refinancing the balloon are set out next to paying it, so you see the whole picture.
Asset age rules differ
one lender may refinance a 7 year old truck that another will not. We know which lenders go further.
Trade-up figures on the table
where you are thinking of a newer asset, we show how the balloon and the trade-in value carry into the new loan.
We represent you, not the lender
Joseph Farhat and his team act for you from the payout figure through to settlement.
Several balloons, one plan
where vehicles or machines fall due close together, we look at them together rather than one at a time.
90+ bank, non-bank, and specialist lenders
a clean payment history on a newer asset can go to a bank at a sharper rate, and older assets still have options.
One conversation, fewer enquiries
we approach the lender most likely to approve first, rather than lodging several applications.
Private finance for unique scenarios
where bank and non-bank lenders are not the right fit, we can introduce you to private finance options.
Usually no direct cost to you
as a broker we are typically paid by the lender on settlement.
An honest answer early
if the balloon is due within weeks, call us now and we will tell you what is realistically achievable before the date.
Frequently asked questions
What is balloon payment refinance?
It is a new loan that pays the balloon, or residual, owing at the end of a business vehicle, truck or equipment loan. The new lender pays out your current lender and takes security over the same asset. You keep the asset and repay the balloon over a new term instead of finding the lump sum in cash.
Can a balloon be refinanced?
In most cases, yes. Lenders look at three things: how old the asset will be at the end of the new term, what it is worth against the amount owing, and how the current loan has been repaid. Refinancing spreads the cost but adds interest and fees, so the total paid is higher than covering the balloon in cash. Where the business could pay the balloon without strain, that may cost less overall. Joseph Farhat and his team will show you both figures.
Is there an age limit on the asset?
Yes. Most lenders set a maximum age the asset can reach by the end of the new loan, and the limit varies by lender and by asset type. An older asset may still be refinanced over a shorter term, which raises each repayment. Some lenders also look at kilometres or hours, not only the year. Send us the year, make and model, and we can tell you which lenders will consider it and for how long.
Can I trade up instead?
Yes, and many businesses do. The asset is traded in or sold, the sale proceeds go towards the balloon, and a new loan funds the replacement. If the asset is worth more than the balloon, the difference can act as a deposit. If it is worth less, the shortfall may be added to the new loan, which some lenders allow. That means paying interest on the old asset as well as the new one, often over several years, so the total cost can be considerably higher. We set out the repayment and the total cost of trading up next to refinancing the balloon, so you can compare them with your accountant.
What if I have missed payments on the current loan?
It depends on how many, how recently and why. A few late payments with a clear reason, followed by a steady record, usually leave options open. Several recent arrears make it harder, and the lenders willing to consider it may charge a higher rate or ask for extra security. Lenders will see the history on your credit file, so tell us at the start and we will approach lenders that take it into account. If the business is behind on several debts and may not be able to pay them as they fall due, speak with your accountant or a registered insolvency practitioner before taking on a new loan.
Can I sell the asset to pay the balloon?
Yes. Selling the asset and using the proceeds is one of the standard ways to meet a balloon, and it can be the lowest-cost option where the business no longer needs the asset. Your current lender has security over the asset until it is paid out, so the sale and payout are usually settled together. If the sale price is less than the balloon, the difference still has to be paid.
Can I refinance a balloon with low-doc or no-doc?
Often, yes. Many lenders refinance a balloon on low-doc or alt-doc terms, using business bank statements, BAS or an accountant's letter, particularly where the asset is in good condition and the current loan has been kept up. No-doc options exist for some assets, usually at a higher rate or with a lump sum paid off the balloon first. Full financials generally bring a sharper rate.
Do you work with borrowers with bad credit?
Yes, we do. Defaults or a judgment on your credit file do not rule out refinancing a balloon, and you will not be made to feel uncomfortable about raising them. Several lenders on our panel weigh the asset, its value and recent trading more heavily than the credit file, and price for the risk rather than decline it. Telling us early means we go to the right lender first, without adding enquiries to your file. Joseph Farhat and his team will tell you honestly what is achievable before you apply anywhere.
Why work with Settled With Joe to arrange your balloon payment refinance?
Because one conversation covers the cost comparison and the lending, without a round of applications. Most people we help with a balloon are self-employed tradies, transport operators and company directors facing a fixed date: a payout letter that has just arrived, a residual on a truck due at month end, several vehicles falling due together, or a trade-up they want costed first. Those situations are routine for us, and there is no judgement in the conversation. What matters to lenders is the asset, its age at the end of the new term, its condition and how the current loan has been repaid. Our panel covers 90+ bank, non-bank, and specialist lenders, so a clean file on a newer asset can go to a bank at a sharper rate, and there are still options for older assets or a close due date. We are based in Sydney and work with businesses Australia-wide. Joseph Farhat and his team will tell you honestly and early whether we can help and what is realistic before the balloon falls due.
Do you give financial advice?
No. We do not guide you on your finances, nor give financial advice. We focus on outcomes and solutions of presenting your unique scenario to the right lender so you can access funding in a timely and compliant manner.
Do you help with balloon payment refinance outside Sydney?
Yes. Settled With Joe is based in Sydney and arranges balloon payment refinance Australia-wide, for metro and regional businesses. That covers clients in Sydney, Melbourne, Brisbane, Perth, Adelaide, and Canberra, along with regional areas including Newcastle, Wollongong, Geelong, Gold Coast, Sunshine Coast, and Toowoomba. Joseph Farhat and his team will match your asset and due date to the lenders that suit them.
