Consolidate Equipment Loans

Yes. Refinancing and equity release are routine parts of business equipment ownership. A refinance replaces an existing facility with a new one on better terms, while an equity release (sometimes structured as a sale and leaseback) draws cash out of equipment you already own outright or have substantial equity in. Both are secured by the asset, so pricing sits well below unsecured business lending.

The most common reasons Australian businesses refinance are lowering the monthly repayment by extending the term, escaping a high rate agreed when credit or trading history was weaker, clearing a balloon that is about to fall due, consolidating several small equipment loans into a single payment, or freeing working capital for wages, stock and tax.

Lenders look at the asset's current market value and age, the payout figure on the existing contract, your repayment conduct over the last six to twelve months, and current serviceability. Most will fund up to 70–100 per cent of market value depending on asset age and credit profile, and many will not refinance equipment beyond a certain age at the end of the new term. Watch the early termination fee on the existing contract and remember that a longer term lowers the repayment but raises total interest.

A Lonix broker models the payout, the new repayment and the true cost over the full term before you commit.