Facing a Balloon Payment on Your Commercial Asset?
Don't Lose It. Refinance It.
Varlo Finance is Perth’s specialist in commercial balloon refinance, helping WA businesses keep their essential equipment and improve cash flow. Find out how we can help you navigate your end-of-term payment.
Turn Your Balloon Payment into a Strategic Advantage for Your WA Business.
That looming balloon payment on your essential truck or earthmover can place huge stress on your WA business, forcing a choice between draining your cash reserves or losing the asset altogether. Refinancing offers a smarter path by converting that single lump sum into a manageable new loan structure, so contact us now to secure your equipment and protect your cash flow.
For businesses in Western Australia, these challenges are often magnified by our unique economic environment:
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Your Three Strategic Options: A Clear Guide to Managing Your Balloon Payment
When your balloon payment is due, you have three distinct paths you can take. Understanding the pros and cons of each is crucial to making the best decision for your business’s future.
Pay Out the Balloon in Full
How it works
You use your business’s cash reserves to pay the entire lump-sum amount to the lender.
Pros
You gain full, unencumbered ownership of the asset. The loan is finalised.
Cons
This can severely deplete your working capital, leaving you vulnerable to unexpected costs or unable to pursue new opportunities.
Best for
Businesses with very strong cash reserves who want to own their assets outright and have no immediate need for that capital elsewhere.
Refinance the Balloon
How it works
You take out a new loan to cover the balloon amount, effectively extending the finance term with new, manageable repayments.
Pros
You keep your essential, revenue-generating asset. You protect your working capital for other business needs. You get predictable, manageable monthly repayments.
Cons
You are entering into a new loan agreement and will continue to pay interest on the financed amount.
Best for
The vast majority of businesses that rely on their assets for daily operations and want to maintain healthy cash flow.
Sell the Asset
How it works
You sell the vehicle or equipment on the open market and use the proceeds to pay off the balloon amount.
Pros
The debt is cleared, and you may even have surplus cash if the sale price exceeds the balloon.
Cons
You lose a critical business asset. You may face significant downtime and costs to source a replacement. If the sale price is less than the balloon, you still owe the difference.
Best for
Businesses that no longer need the specific asset or are planning to upgrade to a newer model anyway.
How Varlo Finance Makes Refinancing Simple: Our Perth-Based Process
We understand that applying for finance can be a daunting and time-consuming process. Our mission at Varlo Finance is to remove that complexity and stress. As your Perth-based finance partners, we manage the entire process for you, providing expert guidance and clear communication at every stage.
Initial Consultation
It starts with a simple, no-obligation phone call or meeting with our Perth team. We’ll listen to understand your situation, your business, the asset in question, and your goals.
Information Gathering
We’ll provide you with a clear, simple list of the documents required for the application. We know what lenders need to see and can help you prepare your information for the best possible outcome.
Application and Negotiation
This is where our expertise shines. We take your information and present it to the most suitable lenders from our panel, including our key partner, Angle Finance. We negotiate on your behalf to secure the most competitive rates and terms.
Approval and Settlement
Once an approval is secured, we coordinate everything. We manage the paperwork, liaise with both your old and new lender, and ensure a seamless settlement process. Your focus remains on running your business, while we handle the details.
The Angle Finance Advantage: Why Our Partnership Delivers Better Outcomes
Varlo Finance has built a strong strategic partnership with Angle Finance, a leading Australian non-bank lender. We choose to work closely with them because they provide distinct advantages that directly benefit our WA clients, offering a powerful alternative to the major banks.
Access to Highly Competitive & Tiered Rates
Through our partnership, we provide access to Angle Finance’s premium “A+” pricing for well-established businesses with strong credit profiles. This ensures our most qualified clients are rewarded with exceptional rates. For businesses financing over $300,000, we can secure significant rate discounts, with rates starting from very competitive levels. The flexible rate card considers your status as a property owner and the type of asset being financed, allowing us to find a pricing structure that fits your specific situation.
A Faster, Simpler "Low Doc" Process
We understand that time is money. Angle Finance’s streamlined assessment process means many of our clients can qualify for “Low Doc” loans, requiring significantly less paperwork.
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Reduced Paperwork
For many applicants, we can secure finance without the need for extensive financial statements. -
Flexible Requirements
For loans up to $100k, GST registration and prior asset finance references are not essential. -
Clear Alternatives
If you don't qualify for a low doc solution, we have clear "Full Doc" pathways using your last six months of bank statements or accountant-prepared financials.
Flexible Solutions for WA Businesses
Our partnership allows us to cater to a wide range of business circumstances, offering the flexibility that traditional lenders often can’t.
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Accommodating Credit Policies
Angle Finance has a broad appetite for various credit profiles and offers flexibility on credit scores for large deals over $500,000. -
Rewarding Loyalty
Existing Angle customers with a good history can qualify for a low doc exposure of up to $400,000. -
Flexible Property Ownership
We can assist both property owners and non-property owners. Spousal property is accepted as security, and non-property owners can secure finance with a 20% deposit.
Frequently Asked Questions about Balloon Refinancing in Australia
What exactly is a balloon payment?
A balloon payment, also known as a residual value, is a large, one-off lump sum payment due at the end of a loan term, such as a chattel mortgage or hire purchase agreement. It’s agreed upon at the start of the loan to help reduce the regular monthly repayments.
Can I refinance a balloon payment if the due date is very soon?
Yes, absolutely. We specialise in fast turnarounds. Because we work with agile lenders like Angle Finance, we can often secure approval and settlement in a matter of days, helping you avoid default even on a tight deadline.
What documents will I need to provide?
Typically, you will need to provide standard identification (like a Driver’s Licence or Passport), your ABN and business details, and proof that the asset is used primarily for business purposes. Depending on the loan size and lender, financial statements or tax returns may also be required. We will provide you with a simple checklist.
Do I have to refinance with my original lender?
No, you are free to refinance with any lender. In fact, shopping around through a broker like Varlo Finance often results in a more competitive deal than what your original lender might offer.
Can I refinance 100% of the balloon amount?
Yes, in most cases, we can secure finance for 100% of the balloon payment amount, so you don’t need to provide any deposit or capital upfront.
What types of assets can I refinance?
Through our partnership with Angle Finance, we can arrange refinancing for a wide range of business assets, which are generally categorised as Primary, Secondary, or Tertiary. The type and age of your asset is a key factor in determining the interest rate and loan term you will be offered. We will work with you to understand your asset and find the most competitive solution available.
Do I need to be a property owner to qualify for refinancing?
No, you do not need to be a property owner. While property owners often secure more competitive interest rates, we have excellent options for non-property owners as well. It is important to note that non-property owners may be required to provide a 20% deposit. Our lending partner also accepts spousal property as security, providing greater flexibility.
My business is relatively new. Can I still get finance?
Yes, we can assist. While the most competitive “A+” rates are typically for businesses with a longer history of ABN and GST registration , our lending partner has specific products designed for start-ups that have been operating for less than two years. We can absolutely work to find a solution that fits your newer business.
What is the difference between a "Low Doc" and "Full Doc" application?
A “Low Doc” (low documentation) loan is a streamlined process that requires less paperwork, designed for qualifying applicants to get them a faster outcome. If an applicant does not meet the criteria for a low doc loan (for example, if they exceed the maximum asset amounts or do not have a credit reference for larger deals), we move to a “Full Doc” assessment. This simply means we would need to review additional documents, such as six months of business bank statements or accountant-prepared financials, to assess the application.
Are there any industries or assets that you cannot assist with?
While we can help a broad range of businesses, our lending partner, Angle Finance, does have some specific exclusions. We are typically unable to provide financing for applicants who are taxi or Uber drivers. Additionally, we cannot finance assets that will be used for “dry hire” (renting out the equipment by itself without an operator)
What We Can Refinance in WA
Western Australia’s economy is built on powerful and diverse industries, and we have the expertise and lending partners to refinance the critical assets that drive them. Our solutions cover a wide range of new and used equipment, with our partner Angle Finance able to consider assets up to 20 years old at the end of the new loan term.
We specialise in refinancing balloon payments for:
Transport & Logistics
- Prime Movers
- Rigid Trucks and Pantechs
- Commercial Trailers
- Light Commercial Vehicles and Utes
Construction & Earthmoving
- Excavators and Diggers
- Loaders and Skid Steers
- Graders and Dozers
- Dump Trucks and Haulage Equipment
Mining & Resources Support
- Mine-Spec Vehicles
- Drilling Rigs
- Exploration Equipment
- Forklifts and Telehandlers
Specialised Equipment
- HIAB and Truck-Mounted Cranes
- Tractors and Harvesting Machinery
- Manufacturing Plant Equipment
- Solar and Telephony Equipment