Check how the equipment sale proceeds reached the loan account

The equipment has gone but the account remains

After financed equipment is sold, the lender sends a balance still owing. Before accepting or disputing that figure, request the records explaining how the sale affected the account. Physical collection, sale, receipt of proceeds and credit to the loan may appear on different dates. Keep those events separate so an adviser can follow what actually happened.

Start with a specific sale

Imagine a contractor whose returned excavator has been sold by the financier. The contractor sees a sale price in one document and a smaller credit on the loan statement. That difference needs an explanation rather than an immediate allegation. Gather the asset identifier, sale statement, relevant correspondence and the account entries covering the period before and after sale.

Use the agreement and supporting records

Business.gov.au recommends understanding contract terms and obtaining advice about unclear wording. Ask the adviser to examine the finance agreement alongside the sale accounting. Request the basis for deductions and any continuing charges shown. This article does not decide whether a particular sale process, deduction or claimed balance is lawful; those questions depend on the documents and applicable law.

Source: business.gov.au: Prepare a contract

Build the numerical bridge

Show the stated gross proceeds, separately identified deductions and net amount credited, then reconcile that credit to the remaining loan balance. Include payments already made where relevant. Avoid subtracting the gross price and the net credit as though they were two recoveries. If a statement omits an amount or date, list the missing information without inserting a convenient estimate.

Raise a precise question

In the excavator example, ask for the document supporting an unexplained deduction and confirmation of the account to which the net proceeds were applied. Keep the enquiry factual and retain the response. Tell the adviser about any demand or proposed deadline at the same time. Waiting for an accounting explanation should not silently replace advice about responding to a formal notice.

Update the position after review

When the figures are explained or corrected, retain the reconciled statement and the advice about any remaining obligation. Update the cash plan using the supported position, keeping disputed amounts identified. Returning an asset does not by itself demonstrate a zero balance. Equally, a remaining figure on a statement should be traceable to the sale and account records before it drives the next decision.