Costs & Repayments

Interest rates vary based on several factors and are fixed for the life of the loan — meaning your repayment amount will not change regardless of what happens to the RBA cash rate after your loan is settled.

Factors that influence the rate you are offered:

• Your business's credit profile (credit history, defaults, existing debt)
• Trading time and business revenue
• The type and age of equipment being financed
• Finance amount and loan term
• The specific lender on our panel that best matches your profile

Indicative commercial equipment finance rates in Australia currently range from approximately 6%–20%+ per annum. Strong business profiles with clean credit and established trading history tend to attract rates toward the lower end of this range.

EquipPay's role is to match your application to the lender offering the best rate for your specific profile.

All equipment finance products facilitated through EquipPay are on fixed interest rates. This means:

• Your interest rate is set at approval and locked in for the full loan term
• Your repayment amount is exactly the same every week, fortnight, or month
• When the RBA raises or cuts rates, it has no effect on your existing equipment finance repayments
• You can budget with complete certainty — no payment surprises for the life of the loan

This is a core advantage of equipment finance over variable-rate business loans for capital expenditure.

The total cost of your finance depends on the principal amount, interest rate, loan term, fees, and whether a balloon payment is included. Here is a worked example to illustrate:

This is illustrative only — your actual repayments and total cost will be confirmed in your formal approval. Lender establishment fees (typically $300–$800) may be added to the loan. All costs are disclosed in full before you sign.

EquipPay does not charge customers a separate broker fee, platform fee, or application fee. There is no amount to pay EquipPay directly.

EquipPay earns a commission paid by the lender when a deal is successfully settled. This is standard practice for credit intermediaries (brokers) in Australia and is required to be disclosed. You will receive a Credit Proposal Disclosure Document (CPDD) before any formal application is submitted.

This commission does not increase the interest rate or fees you pay — the lender's pricing to you is the same whether you apply through EquipPay or approached them directly.

Lender fees typically include:

• Establishment/origination fee: A one-time fee charged when the loan is set up. Typically $300–$800 depending on the lender and product.
• Monthly account-keeping fee: A small periodic fee. Typically $5–$15 per month.
• Early repayment fee: Charged if you pay the loan out before the end of the agreed term. Varies by lender and product.
• Default/late payment fee: Applied if a scheduled repayment fails. Typically $25–$50 per missed payment.

All fees are disclosed in your loan contract before you sign. There are no hidden charges.

No. There is no fee to apply for equipment finance through EquipPay. You can complete the application, receive your assessment, and review a conditional approval — all without any cost. The only fees that apply are the lender's standard establishment fees, which are charged at settlement.

If you apply, receive an approval, and choose not to proceed — you pay nothing. There is no cost to exploring your options.

Your repayment amount is calculated using a standard loan amortisation formula, based on:

• Principal: The financed amount (equipment price minus any deposit, plus any capitalised fees)
• Interest rate: Your approved fixed annual interest rate
• Loan term: The number of months you will repay over
• Balloon/residual: If applicable, the lump-sum amount excluded from the regular repayments
• Repayment frequency: Weekly, fortnightly, or monthly

With a fixed rate and no balloon, each repayment is the same amount for the entire loan term. Earlier repayments contain a higher proportion of interest; later repayments contain more principal.

Use EquipPay's repayment calculator at equippay.com.au to model different combinations before applying.

Yes. Most lenders on the EquipPay panel offer three repayment frequency options:

• Weekly — 52 repayments per year. Suits businesses with weekly revenue (hospitality, retail, services)
• Fortnightly — 26 repayments per year. Suits businesses with fortnightly payroll or billing cycles
• Monthly — 12 repayments per year. Suits businesses with monthly invoicing or larger periodic cash flows

You nominate your preferred frequency at application stage. The total cost of the loan is the same regardless of frequency.

A balloon payment reduces your regular repayments by deferring a lump-sum amount to the end of the loan term. The trade-off:

• Lower regular repayments during the loan term
• Higher total interest over the life of the loan
• A lump-sum payment required at end of term

Illustrations only — your actual figures depend on your approved rate and lender fees.

When your balloon payment falls due at the end of the loan term, you have several options:

• Pay it in full: If you have the cash available, pay the balloon amount and the loan is cleared.
• Refinance the balloon: Arrange a new shorter-term loan for the balloon amount.
• Sell the equipment: Use the proceeds from selling the equipment to cover the balloon.
• Trade in or upgrade: Use the equipment as a trade-in for a new equipment purchase, with the trade-in value offset against the balloon.

EquipPay will reach out before your balloon falls due to discuss options and assist with refinancing or settlement if needed.

Yes. Most equipment finance agreements allow early repayment — paying the full outstanding balance before the scheduled end of the loan term. To get your payout figure:

• Log in to your customer portal at equippay.com.au/customer and request a payout figure, or
• Contact EquipPay or the lender directly — a payout quote is typically provided within 1 business day

The payout figure will be the outstanding principal balance plus any applicable early repayment fee and accrued interest to the payout date.

It depends on your specific lender and product. Early repayment fee policies vary:

• Some lenders charge no early repayment fee
• Some charge a fixed fee (e.g., $250–$500) regardless of when you pay out
• Some charge an amount based on the remaining interest or a percentage of the outstanding balance

Your specific early repayment terms are disclosed in your loan contract before you sign. If avoiding early repayment fees is important to you, tell EquipPay at the application stage — we will factor this into our lender selection.