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What is shortfall liability

We understand that financial pressures can make loan repayments very difficult. If you are considering voluntarily surrendering the secured goods we financed on your Breeze loan, it is important to understand what happens if the sale of the goods does not cover the full amount owed. 

What Happens When You Voluntarily Surrender the Goods

When you voluntarily surrender the goods, we will sell them in a fair and commercially reasonable way. The sale proceeds are applied in this order:

  1. Reasonable costs of collection, storage, maintenance, valuation, insurance, and sale.

  2. Any outstanding fees, charges, and default interest.

  3. The remaining principal and interest on your loan.

Borrowers may find that the sale proceeds cover a large portion — or even all — of the outstanding balance, especially when the goods are in good condition. This can significantly reduce or fully clear what you owe.

What is a Shortfall

If the sale proceeds are less than the total amount owing, the difference is called a shortfall. You remain responsible for any shortfall.

Shortfall Liability – What It Means

  • You are responsible for any shortfall plus reasonable additional costs.
  • We will send you a clear statement of account after the sale, showing proceeds, deductions, and any remaining balance.
  • We will work with you in good faith on a realistic payment plan that suits your circumstances.

Positive outcomes are common

Voluntary surrender frequently reduces your overall debt faster than continuing strained repayments. It avoids extra enforcement costs and lets you start fresh with a smaller (or cleared) balance. Many borrowers successfully resolve their loan through surrender and a simple payment plan for any remaining balance.

Protection and support

  • We must sell the goods reasonably.
  • You can nominate a buyer if you know someone offering a fair price.
  • Hardship assistance and flexible repayment options are always available.

Voluntary surrender can be a positive step that reduces stress and debt.

Important

Please be aware that once the equipment has been used, it is now second-hand. Sale prices reflect this reality — you generally cannot expect to recover the original purchase price. The goods no longer carry any manufacturer’s warranty, and their market value is typically lower than the amount originally financed. Additionally, if you have been in the loan for only a short period of time, you will have paid off very little of the principal. This means the remaining loan balance may still be close to the original amount financed. Sale prices are also influenced by supply and demand in the second-hand market. High supply of similar used equipment or lower demand can result in more moderate sale prices. Because of these factors combined, a reasonable sale price is normal, and voluntary surrenders can result in a manageable (or zero) shortfall, depending on the condition, market value, and timing of the sale.