Three payments behind on equipment finance? Talk before repossession

The call matters more than the arrears

When the financier starts calling, the problem is no longer a normal late payment. A secured lender can move toward repossession of plant and equipment if the account keeps drifting. Business.gov.au says speaking to creditors early can prevent late penalties and collection pressure, and ASIC explains that secured creditors hold security interests over company assets. ([business.gov.au](https://business.gov.au/finance/financial-trouble/manage-being-in-debt?utm_source=openai))

That is why silence is expensive. Once the lender thinks you are not engaging, the conversation shifts from repayment to recovery. For a business owner, that can mean losing the machine that earns the next job, then having to solve the cash problem without the very asset that creates the cash. ([asic.gov.au](https://www.asic.gov.au/regulatory-resources/insolvency/insolvency-for-creditors?utm_source=openai))

Make the first call today

Call the financier today and be direct. Ask whether they offer hardship provisions, a longer due date, a partial payment or a changed repayment schedule. Business.gov.au recommends explaining your circumstances, asking for those options and keeping a record of the conversation. Start with what you can pay, not what you hope to pay later. ([business.gov.au](https://business.gov.au/finance/financial-trouble/manage-being-in-debt?utm_source=openai))

Have a simple proposal ready before you ring. Write down the amount you can meet this week, the amount you can meet next month and the date you can review it again. If they ask for a cash flow forecast or profit and loss statement, prepare one before the next call so the proposal is grounded in real numbers. ([business.gov.au](https://business.gov.au/finance/financial-trouble/manage-being-in-debt?utm_source=openai))

Source: Official guidance

Protect the equipment that keeps the work moving

Decide which machine you cannot work without. A ute, skid steer or excavator that is used every week usually matters more than a spare asset sitting idle in the yard. That is a practical business judgment, not a legal rule, but it helps you protect the gear that produces income while you work through the arrears. ([business.gov.au](https://business.gov.au/finance/financial-trouble/manage-being-in-debt?utm_source=openai))

Then look at the equipment you can live without. Selling surplus gear may be a faster way to fund a realistic repayment proposal than taking on another expensive debt. Business.gov.au suggests working out what you can pay now and later, and that approach is easier when you turn dead stock into cash rather than hoping the shortfall disappears. ([business.gov.au](https://business.gov.au/finance/financial-trouble/manage-being-in-debt?utm_source=openai))

Check what the lender can actually enforce

Read the finance paperwork carefully. ASIC says a secured creditor can hold a security interest over company assets, and lenders often rely on the PPSR when they want that interest to be enforceable and given priority in insolvency. If your equipment sits behind a registered security, the financier may have stronger enforcement options than an ordinary trade creditor. ([asic.gov.au](https://www.asic.gov.au/regulatory-resources/insolvency/insolvency-for-creditors?utm_source=openai))

That makes your records important. Keep the finance contract, serial numbers, repayment history, invoices and any emails about changed terms in one file. If there is any dispute about what was promised or what was missed, dates and documents matter more than memory once repossession talk starts. ([asic.gov.au](https://www.asic.gov.au/regulatory-resources/insolvency/insolvency-for-creditors?utm_source=openai))

Put the conversation in writing and get help early

After the call, send a short email confirming what was discussed, what you offered and what the financier said they would consider. Business.gov.au recommends keeping a record of the conversation. If the numbers still do not work, ask for help early rather than letting the account slide into a repossession path. ([business.gov.au](https://business.gov.au/finance/financial-trouble/manage-being-in-debt?utm_source=openai))

CRP can help you work through debt restructuring options and coordinate independent qualified professionals who can review the wider cash position. Bring the finance contract, your latest statements and a list of equipment you must keep and can sell. This is general information only, not legal advice. ([business.gov.au](https://business.gov.au/finance/financial-trouble/manage-being-in-debt?utm_source=openai))