A chattel mortgage is the most common finance type we offer and may provide significant financial advantages over a consumer loan, providing the asset being purchased will be used primarily for business purposes (i.e. over 50% business purpose).
A chattel mortgage works much like a normal mortgage. You take ownership of the asset at time of purchase and the lender simply takes a ‘mortgage’ over it until the loan is paid in full. One of the biggest benefits of ‘owning’ the asset is the ability to claim things like interest and depreciation.
Businesses that account for GST on a cash basis might also be able to claim GST on the purchase price of the asset on their next Business Activity Statement. It is important to understand these tax implications prior to choosing the type of finance you require. Speaking with your accountant prior to your purchase will help you decide what type of finance you require.
A chattel mortgage is our most common finance option, designed for assets used primarily for business (over 50%). You take ownership of the asset upfront while the lender holds a mortgage over it until the loan is repaid. Key benefits include claiming interest, depreciation, and in some cases GST credits. It’s important to seek advice from your accountant to confirm the best option for your business.
Get an online business asset finance quote by adding a few simple details about your upcoming purchase.
High-pressure sales tactics and the urgency to secure new equipment can sometimes cloud the finance decision-making process. A rushed choice today could create unnecessary financial strain for years to come.
We specialise in helping businesses secure equipment finance that truly fits their needs. With fast indicative quotes and access to a wide panel of lenders, we’ll match the right finance solution to your business and equipment type.
Don’t just settle for the first option offered. Click below for a free, no-obligation quote and let us guide you through financing your next business asset with confidence.
Make sure you compare the ‘actual’ repayment amount. This is the only way to compare apples with apples.
A low interest rate quoted by a dealer might be an indicator that they are making more margin on the sale price of the asset, thus reducing your ability to negotiate a great price.
If you can negotiate a good price on the asset first, you can then compare finance options knowing you are getting a great deal on both.
