Balloon vs Nil Balloon on a Concrete Pump

Two Ways to Structure the Same Pump

A balloon (or residual) is a lump sum left owing at the end of the loan. It lowers your regular repayment, but you need to pay, refinance or trade out of it at the end.

Nil balloon means the repayments cover the whole loan. They are higher, but the pump is fully paid off at the end of the term.

Real Examples

  • 2006 36m Putzmeister boom pump - $275,000 over 60 months, nil balloon
  • 2014 JunJin JXZR 42m boom pump - $286,000 over 60 months, 20% balloon
  • 2007 KCP 32m boom pump - $140,000 over 60 months, nil balloon

    • How to Choose

  • Cash flow now. If the pump is still building up work, a balloon can ease the early months.
  • How long you keep pumps. If you upgrade every few years, a balloon can line up with trading it in.
  • Age of the pump. Lenders limit balloons on older equipment.
  • Your accountant's view. Tax and depreciation affect which structure suits you.

    • Use our finance calculator to compare repayments with and without a balloon, or talk to us about your pump.

    *This article provides general information only and does not constitute financial advice. All finance is subject to lender approval.*

    EverCap Finance is a Sydney-based asset finance broker led by Director Kyle Talbot, supported by Broker Support Officer Carl Trabado. We arrange truck, concrete pump, earthmoving, machinery and equipment finance for Australian businesses through a panel of 50+ lenders. EverCap Finance is a Credit Representative of COG Aggregation Pty Ltd (ACL 389527). Call 0435 603 545 or email info@evercapfinance.com.au.