Quick answer
When key equipment fails, every day without it costs takings, so decide quickly between repair and replacement, then fund the choice. Smaller unsecured amounts can sometimes be funded the same day, and larger purchases can be spread over a term so the equipment earns while it is being paid off. Get a written quote and have statements ready.
Key points
- Calculate the daily cost of being down.
- Compare repair and replacement over the next few years.
- A quote in hand makes funding faster.
- Match repayments to the equipment's earning life.
- Unsecured
- Typically $5k – $500k
- Speed
- Same day possible, smaller sums
- First step
- Cost of each day down
- Bring
- Quote, statements, ID
For some businesses, one machine is the business. A commercial oven. A refrigeration unit. A CNC router, a digger, a delivery van. When it stops, income stops with it, and the repair or replacement quote arrives just as the cash cushion is thinnest.
Start with the cost of standing still
Before looking at quotes, work out what each day of downtime costs:
| Item | How to count it |
|---|---|
| Lost takings | Normal daily sales through that equipment |
| Costs that continue | Wages, rent and finance during the stoppage |
| Customer damage | Orders lost to competitors who never return |
| Rental or workaround | What a stopgap costs per day |
A café whose espresso machine sits idle may lose most of its morning trade. A courier without its van loses everything. Numbers like these show how much urgency is justified, and how much the stopgap is worth.
Repair or replace?
Ask three questions:
- How much is the repair, and how long will it hold? A repair that lasts three months is not the same as one that lasts three years.
- How old is the equipment and how often has it failed? Repeat failures point to replacement.
- How does the repair quote compare with the replacement price? When repairs approach half the price of new, replacing tends to make more sense.
Get at least two written quotes where time allows. Under pressure, a quote from a trusted supplier is better than none.
Quote in hand and income at risk? Start the 60-second enquiry.
Funding choices
A quick unsecured loan
For smaller amounts, same-day funding is possible with statements, ID and a quote. Good where the item is modest and you want to be trading again tomorrow. See quick business cash.
A longer term for larger purchases
For bigger replacements, spreading the repayment over the equipment’s earning life lets the asset pay for itself. A business cash loan with a longer term keeps weekly pressure low.
Property-backed money
Where the purchase is very large, equity can support funding from $20k to $5m. See property-backed cash.
A rental or hire in the meantime
Hiring a unit while the new one is ordered can keep you open. Include hire costs in your calculation and in the amount you borrow.
What to bring to the conversation
- A written quote or invoice for the repair or replacement
- Recent business bank statements
- Photo ID and your NZBN
- An estimate of lost income each day
- Insurance details, if a claim is possible
Protecting your cash flow
A sudden outlay, plus lost takings, can ripple through into wages, rent and tax. Use the cash runway guide to see how many weeks of cover you hold, and put the breakdown into your forecast alongside GST and PAYE. If the dip is deep, see bills due at once.
Prevent a repeat
- Service equipment on schedule, and diarise it.
- Keep a small repair fund, even $100 a week.
- Identify single points of failure, such as one oven, and know the plan B.
- Check insurance covers breakdown and hire costs.
Hire, lease or buy outright?
Not every breakdown calls for a purchase. Short-term hire can keep you trading while a replacement is sourced, and leasing keeps the outlay small when the equipment will date quickly. Buying outright suits assets that last and keep resale value. Compare the full cost over the period you expect to use the item, not just the first payment, and remember GST on purchases is recovered later through your return while the cash leaves up front. Where the machine earns directly, even a stretched repayment is easy to justify; where it supports the business indirectly, be stricter.
Talk to your insurer and supplier early
While you line up funding, ring your insurer to find out whether the failure is covered and what evidence they need, and ask the equipment supplier whether they hold a loan unit, offer trade-in credit or can fast-track delivery. Either call can shorten the downtime or reduce the amount you need to borrow, and both take minutes.
An illustrative example
Illustrative only. A bakery in Timaru loses its main deck oven on a Sunday night. Repair quotes run near $8,000 for a ten-year-old unit, while a new oven is $21,500. Each lost day costs about $1,600 in takings. The owner chooses replacement, borrows $24,000 unsecured on Monday morning to cover the oven and installation, and is baking again by Thursday.
Get it moving
If a breakdown is costing you money each day, the quickest step is a short conversation. The enquiry takes about a minute, asking involves no credit check and your details are not distributed around. A real person rings you promptly.
Tell us the quote, how long you can wait and your usual takings so we can suggest the quickest suitable route.
Frequently asked questions
Should I repair or replace?
Compare the repair cost and how long it will last against the replacement price and its life. If repairs are repeating or the quote approaches the price of new, replacement usually wins.
How fast can funding arrive for an urgent purchase?
For smaller unsecured amounts, the same day is possible with statements and a written quote ready.
Can I spread the cost over the machine's life?
Yes. Matching the repayment term to the useful life of the equipment keeps cash flow healthy while the machine earns its keep.
Does insurance help?
Sometimes. Check whether a policy covers breakdown, and lodge any claim promptly. Don't wait for the claim before arranging a stopgap.