Equipment broke down? Cash to get back up and earning

The coolroom compressor dies on a Friday night. The delivery van’s gearbox goes on the M1. The commercial oven won’t heat. The CNC machine throws an error the technician says means a new controller. Whatever it is, the business can’t earn until it’s fixed.

What does a breakdown really cost?

More than the invoice. Add up:

• The repair or replacement itself
• Lost sales or jobs for every day you’re down
• Wasted stock, such as spoiled food or materials
• Staff costs while they can’t work at full capacity
• Penalties or lost contracts if you miss delivery dates

A $12k repair that takes a week can easily cost more in lost trade. That’s why speed matters more than squeezing the last dollar out of the quote.

First moves in the first few hours

1. Get a firm quote and a timeframe. Ask what’s possible today, this week and next.
2. Check insurance. Machinery breakdown, business interruption and spoilage cover may apply.
3. Check warranty and service agreements. Especially for newer equipment.
4. Ask about hire. A hired oven, van or generator can keep you trading while you decide.
5. Tell key customers early. A heads-up with a new date is better than a missed delivery.

Repair, replace or hire?

Option	Suits when	Watch for
Repair	Equipment is otherwise sound, parts available	Repeat failures, long part delays
Replace (new)	Old, unreliable or obsolete	Lead times on new equipment
Replace (second-hand)	Need it fast at lower cost	Condition, no warranty
Hire	Short-term, or while waiting	Ongoing cost if it drags on

business.gov.au’s cash flow tips suggest leasing or hiring equipment you only need occasionally and selling assets you no longer use. A breakdown is a good moment to reconsider which you need.

Equipment down and money stopped? Tell us what broke and what it costs, and a real person will call you back fast.

How do you fund it fast?

• Unsecured cash loan. Same-day funding is possible for smaller amounts. Best for repairs, second-hand replacements and mixed costs. See business cash loan.
• Existing cash line. If you have headroom, draw now and repay over coming weeks.
• Property-backed cash. For expensive replacements, such as heavy machinery or a truck, especially if credit history is a problem. $20k to $250k is possible the same day with property security.
• Equipment finance. For planned replacements of new or near-new equipment, where the item itself is the security. Usually less suited to urgent repairs.

Bridging an insurance claim

If your insurer will cover the breakdown but won’t pay for weeks, you have a timing problem rather than a cost problem. The repairer usually wants paying before the job is released, and the claim has to be assessed, approved and paid.

A short-term cash bridge can cover the repair now and be repaid when the insurer pays out. To make that easy:

• lodge the claim straight away and keep the claim number
• get the assessor’s or insurer’s emails confirming what’s covered
• keep every invoice and receipt for the repair
• note the excess, because that part isn’t coming back

Lenders are more comfortable when the exit is a documented insurance payment rather than a hope.

What lenders want to see for breakdown cash

• the repairer’s or supplier’s quote, with timing
• recent business bank statements
• how much income the equipment generates (a rough figure is fine)
• whether insurance or warranty applies

The clearer the link between the equipment and your income, the stronger the case. “Without this oven we can’t trade” is about as clear as it gets.

Planning for the next breakdown

Every business with critical gear should have:

• a list of critical equipment and its age
• a trusted repairer for each item, with after-hours numbers
• a repair reserve, even a small one
• insurance that covers breakdown and interruption

Our guide to cash runway helps you work out how big that reserve should be.

An illustrative example

Illustrative only. A Ballarat bakery’s deck oven fails three days before a long weekend. The repairer quotes $14k with parts available in two days; a new oven would take six weeks. The owner hires a smaller oven for the weekend and funds the repair with an unsecured cash loan approved the same day. The bakery trades through the long weekend at reduced capacity rather than closing.

Let’s get you back to work

Every hour your equipment is down is money walking out the door. Tell us what broke, what the fix costs and when you need it. The enquiry takes about 60 seconds and won’t touch your credit file. We won’t pass your details to a list of lenders who’ll all ring at once. A real person looks at your situation and calls you, fast.

Please be accurate about the amount and how quickly you need it. That’s what lets us find the quickest realistic option.

Fix it fast →