Chattel Mortgage

Under a Chattel Mortgage the financier advances funds to the customer to purchase business equipment, and the customer takes ownership of the equipment (chattel) at the time of purchase.

The financier then takes a mortgage over the equipment as security for the loan.

Upon completion of the contract, the mortgage is removed giving the customer clear title to the equipment.

Key Features

• Up to 100% financing (Including GST)
  
• Business registered for GST can claim 100% of the Input Tax Credit in the Business Activity Statement(BAS) following purchase
  
• Full Ownership of equipment – the equipment is the security
  
• Payments may be structured – including irregular or seasonal payments
  
• Finance term up to 7 years
  
• Payments and Interest fixed for the life of the transaction
  
• Available for new or used equipment
  
• Equity in the equipment increases with each payment
  
• GST not applicable on monthly instalments or final balloon
  
• Balloon payment at end of term may be structured to lower monthly repayments

Key Benefits

• Preserves working capital
  
• The GST refund may be used to increase working capital, reduce the amount of the loan or offset your current GST liability
  
• Builds equity in the equipment and your business
  
• Fixed payments means cash flow is easy to manage
  
• Interest and Depreciation are tax deductible