Chattel Mortgage
You get ownership of the goods on delivery and we’ll take a charge over the goods. Otherwise this product is very similar to a Commercial Hire Purchase, although the fee structure is a little more complicated.
The Chattel Mortgage is appropriate to finance goods for more than 50% business use. You (the customer) take ownership of the goods upon delivery, with us able to secure the loan by registering a charge over the goods.
Who can benefit from chattel mortgages?
- Anyone wishing to finance the purchase of goods for business purposes.
Chattel mortgage Key features
- You hold the title to the goods.
- 100% finance can be provided.
- Repayment schedules are flexible and can be structured to suit you.
- Balloon payments at the end of the term, similar to a lease residual value, can be arranged.
- A Chattel Mortgage may provide tax benefits if the financed goods are used to produce assessable income.
- The term of the Chattel Mortgage is flexible and can be negotiated, subject to our approval (maximum term 60 months).
Chattel mortgage Benefits
- You own the goods from the beginning of the chattel mortgage contract.
- You can obtain the goods for a minimal capital outlay.
- You can match repayments to seasonal cash flow.
- You can pay lower installments during the term of the contract and make a balloon payment at the end of the term.
- You may be able to make use of taxation benefits if the goods are used to generate taxable income.
Chattel mortgage interest rates
- Interest rate is fixed throughout the term of the loan.
Chattel mortgage fees and charges
- Establishment fee are payable with no applicable GST.
- If you require a cash booklet, additional charges apply.
- An ASIC fee is applicable for companies (varies between states).
Chattel mortgage repayment schedules
Repayments can be made
- Fortnightly
- Monthly
- Yearly
- Quarterly
- Semi Annually
- Seasonal
- Irregular
Click here to review our Comparison table of Loan Products
