What Happens to the Lease If the Business Closes
Last updated: September 2026
Closing a business does not end a printer lease by itself.
The agreement normally has to be settled, and where a personal guarantee was given, the guarantor can remain liable after the company stops trading.
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Quick formThe agreement outlives the trading
A lease is a contract with a financier, not an operating cost that stops when the business stops.
The financier’s claim is normally registered on the Personal Property Securities Register, the PPSR, which is what determines its position against other creditors.
Ceasing to trade, closing an office, or winding down does not cancel the remaining obligation on its own.
The usual routes are settling the agreement early, transferring it to another party, or dealing with it inside a formal insolvency process.
A personal guarantee changes it
Many equipment agreements for small companies are supported by a personal guarantee from a director.
A guarantee is a separate promise from the guarantor personally, so it is not extinguished when the company ceases to exist.
Establish that early: whether one was given, and by whom.
The personal guarantees page covers what one commits you to in more detail.
Four steps, in order
- Find the agreement and confirm whether a personal guarantee was given.
- Ask the financier for a written settlement figure, valid to a stated date.
- Establish where the equipment physically is, and who has access to it once the premises are given up.
- Take advice before entering any formal process, because the sequence affects the outcome.
Winding down against being sold
If the business is being sold rather than closed, the lease can often move with it, and that is a different process covered on the transferring a lease page.
Where it is genuinely closing, the equipment normally has to go back or be settled. It is worth arranging collection rather than leaving it in vacated premises.
This page is general information about how equipment finance generally works in Australia, not legal or insolvency advice. Where a business is in difficulty, take advice early, because the options narrow as time passes.
Common questions
Does closing my business cancel the printer lease?
No.
A lease is a contract with a financier and it does not end because the business stops trading.
It normally has to be settled, transferred to another party, or dealt with inside a formal insolvency process.
Am I personally liable for the lease if the company closes?
Where you signed a personal guarantee, you can remain liable after the company ceases to exist.
A guarantee is a separate promise given by you personally.
Check the agreement to confirm whether one was given.
What should I do with the equipment when we close the office?
Arrange collection or return rather than leaving it in premises you are giving up.
Establish who has access once the lease on the premises ends, because equipment left behind still has to be accounted for.
Is it different if I am selling the business rather than closing it?
Yes.
In a sale the agreement can often be transferred to the buyer with the financier’s written consent, which avoids settling it.
That is a separate process and it needs raising early.