Finance question
Are there early exit or break fees on asset finance?
Sometimes. Whether there is a break or early exit fee depends on the lender and the contract you sign. Some deals cost little to exit early, others include a break cost that reflects ending the term ahead of schedule. We show you the payout maths upfront, so you know the exit cost before you commit, not after.
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The short answer
It depends on the contract, so read it first
There is no single answer across the market, because early exit terms vary by lender. Some asset finance contracts let you pay out with little or no break fee, while others include a cost for ending the agreement before the agreed term. What applies to you comes down to the specific deal you sign.
A break fee is not a penalty for doing something wrong. It reflects the lender having priced the deal over a set term and that term ending early. On a longer contract paid out well ahead of time the figure can be more noticeable, while on others the cost of exiting is minor. The contract spells out how it is worked out.
This is exactly the kind of detail a broker should surface before you sign, not after. Across 40+ lenders the exit terms differ, so we can factor them into which deal suits you and show the payout maths upfront. If flexibility to exit early matters to you, that can be weighed alongside the rate from the start.
What to check before you sign
Where exit costs hide.
The break clause
How the contract calculates any early exit cost.
Remaining fees
Whether unearned fees are added into a payout figure.
Term length
A longer term paid out early can carry a larger break cost.
Lender choice
Exit terms vary across 40+ lenders, so this can be shopped.
Why knowing the exit cost matters
No surprises
Seeing the payout maths upfront means no shock fee at exit.
Weigh flexibility
If exiting early matters, it can be balanced against the rate.
Compared across lenders
Exit terms differ, so a broker can factor them into the choice.
A real example
A contractor expects to refinance a $45,000 machine in a year or two. The broker checks the exit terms across lenders and picks a deal with a light break cost, so paying out early later stays cheap. The exit was priced in from day one. Illustrative only.
Common questions
Frequently asked questions
Will I definitely pay a break fee to exit early?
Not always. Some contracts cost little to exit early, others include a break cost. It depends on the lender and the deal you sign.
What is a break fee for?
It reflects the lender pricing the deal over a set term and that term ending early. It is not a penalty for doing something wrong.
Can I choose a deal that is cheap to exit?
Often, yes. Exit terms vary across 40+ lenders, so if early exit matters we can weigh that alongside the rate before you sign.
Will you tell me the exit cost upfront?
Yes. We show the payout maths upfront so you know the cost of exiting early before you commit, not after.