Chattel Mortgage is the most popular type of finance for businesses purchasing a wide range of assets. It suits many businesses that use a cash accounting method, is suited to many purposes, is straightforward, flexible and with our consultants sourcing your finance – extremely cost-effective.
- The goods/asset is known as the chattel and the lender takes a mortgage over the chattel.
- The borrower has full use of the goods from the time the loan/purchase is settled and is responsible for all ongoing expenses and upkeep.
- Our consultants will assure you of our cheap interest rates on your Chattel Mortgage
- Fixed interest rates for the term of the loan.
- Monthly repayments are fixed and our consultants will work with you to negotiate the most affordable payments for your business.
- The term of the loan is fixed.
- A balloon is optional.
- The borrower can claim the GST on the full purchase price of the goods on the ensuing BAS.
- No GST applies to the repayments or the balloon.
- The repayments are not fully tax deductible. Only the interest portion is deductible.
- When all payments and balloon are finalised, the lender releases the mortgage and full ownership title is transferred to the borrower.
Chattel Mortgage can be used to finance business cars, equipment, trucks and many other assets used in the business.