When equipment repayments outrun the work

When the repayment comes before the revenue

When the machine repayments land every month, they do not care whether the crane was busy, the excavator sat idle, or the ute spent three days on the trailer. That is why equipment finance can squeeze a profitable builder or subcontractor. The work may be there, but if the plant is too heavy for current demand, margin disappears quickly. ([business.gov.au](https://business.gov.au/finance/cash-flow/improve-your-cash-flow?utm_source=openai))

business.gov.au says cash flow improves when you keep records current and make equipment work more efficiently, and that unused assets can be leased, refinanced only if better terms are available, or sold if no longer needed. The practical point is simple: the debt should fit the work you actually have, not the work you hope returns next quarter. ([business.gov.au](https://business.gov.au/finance/cash-flow/improve-your-cash-flow?utm_source=openai))

Put every contract on one page

Start with a plain list of every finance contract. Write the lender, asset, monthly repayment, due date, balloon, fees, security and any end-of-term option. Then mark each machine as busy, occasional or idle. business.gov.au recommends keeping good financial records so you can understand your money habits and spot cash flow issues early. ([business.gov.au](https://business.gov.au/guide/guide-to-managing-cash-flow?utm_source=openai))

Next, match each machine to real jobs. If a machine earns only once in a while, it may need a smaller role, a different contract or a sale. If it is kept only because it is already on the books, it may be costing more than it brings in. That check turns a vague cash problem into a concrete decision. ([business.gov.au](https://business.gov.au/guide/guide-to-managing-cash-flow?utm_source=openai))

Source: Official guidance

Cut the surplus plant before the next due date

Surplus plant should not sit there collecting repayments and insurance while other bills wait. business.gov.au says you can sell assets you no longer need to free up cash, and when closing a business you still need to sell or manage business assets. In a live business, the same logic applies to underused gear. ([business.gov.au](https://business.gov.au/finance/cash-flow/improve-your-cash-flow?utm_source=openai))

Do the sale properly. Gather logbooks, service history, finance statements and title papers before you list anything, then decide whether the best value comes from private sale, trade-in or dealer sale. If the machine is still needed occasionally, compare the sale proceeds against the repayments and carrying costs you will avoid. ([business.gov.au](https://business.gov.au/finance/cash-flow/improve-your-cash-flow?utm_source=openai))

Ask for better terms only where the numbers improve

If the asset is useful, ask the lender about extending the term or changing the structure. business.gov.au says refinancing is using a new loan to pay off an existing one, and it only makes sense if you can get better terms from a lender. Add every fee, balloon and break cost before you compare the options. ([business.gov.au](https://business.gov.au/finance/financial-tools-and-templates/key-financial-terms?utm_source=openai))

If the wider business is under pressure, do not treat this as a one-asset issue. ASIC says eligible companies can use small business restructuring when they are insolvent or likely to become insolvent, and directors stay in control during the process. That does not fix every problem, but it can create room to deal with debt without losing the wheel. ([asic.gov.au](https://www.asic.gov.au/regulatory-resources/insolvency/insolvency-for-directors/small-business-restructuring-and-the-restructuring-plan?utm_source=openai))

Decide the next move and call CRP

A sensible next step is to line up the facts in one file: every finance contract, the current asset list, recent statements, the overdue amount on each machine, and a 13-week cash forecast. Then rank the gear into keep, sell, extend or refinance. That gives you a practical plan instead of another month of guesswork. ([business.gov.au](https://business.gov.au/guide/guide-to-managing-cash-flow?utm_source=openai))

If the pressure is already spreading, call CRP today about debt restructuring. CRP can help you work through the options and coordinate independent qualified professionals. The point is not to chase a perfect outcome. It is to match the equipment debt to the work you actually have before the repayments set the business on a harder path. ([asic.gov.au](https://www.asic.gov.au/regulatory-resources/insolvency/insolvency-for-directors/small-business-restructuring-and-the-restructuring-plan?utm_source=openai))