Flexible chattel mortgage to suite your needs
Business vehicle and asset finance, but with all the flexibility and tax benefits you need to maintain a healthy cash flow all year round – with a Chattel Mortgage, you’re in control.
What is a chattel mortgage?
A Chattel Mortgage is one of the commercial finance products available to companies, partnerships and sole traders that need to upgrade or buy trucks, cars, and equipment. With a chattel mortgage, you take ownership of a vehicle or asset from the start.
Chattel mortgage is a form of secured loan where the finance provider lends you funds to purchase a vehicle, for instance. The ‘chattel’ is the vehicle, and the ‘mortgage’ is a fixed floating charge the lender registers with ASIC to provide security against your borrowing. While your agreement is running, that security helps to keep interest charges lower, and when you’ve paid off the loan, the mortgage gets lifted – giving you clear title to the vehicle. Chattel Mortgage interest rates get fixed for the lifetime of the loan. Repayment terms run between one and five years, although Savvy also has access to lenders that offer seven-year agreements.
- Borrowers can use a residual value (balloon payment), which brings down regular repayment amounts.
- A chattel mortgage is secured finance, so interest rates are lower than when your borrowing is not secured. Interest rates get fixed throughout, so it’s easier for a business to budget.
- You can use a trade-in or cash deposit with a chattel mortgage, or opt to fund 100% of the purchase price.
- Repayment terms are highly flexible to suit business users. If your revenue is seasonal, you can vary repayment terms throughout the year to match that.
How Savvy can help?
Savvy has been in the business of helping commercial borrowers for years. Our consultants leverage established relationships with some of the country’s best lenders to provide excellent finance deals to our users. Not only that, but Savvy is a mine of information and resources for business owners pushed for time. Our people take your bottom line seriously, and we’ll always go the extra mile to find you the best deal for your needs.
If you’re just starting out on your business journey, or if you’re looking to grow, We’ve got lenders from your main stream banks & financiers right through to niche lenders. No matter where you’re at, we’ll look to provide you with the right guidance as to which solution fits your circumstances. Chattel mortgages work so well for business because they’re highly flexible, but you’ll also enjoy some significant tax benefits when you choose to finance your next vehicle this way.
- GST gets charged on the purchase price, so when you’re GST registered, you can claim all of that back when you lodge your next Business Activity Statement if you are accounting on a cash basis.
- GST doesn’t get charged on your monthly repayments. It’s also not applicable when it comes to paying off any residual amount at the end of your agreement.
- When it comes to tax, you can claim for the interest parts of your repayments as a business expense.
- With a chattel mortgage, you own the asset from the start of your agreement, so you can claim depreciation.