What is a chattel mortgage and how can I benefit?
Essentially a chattel mortgage is a finance loan. Your lender holds a mortgage over your financed asset for the duration of the contract. Meanwhile your business instantly enjoys low loan interest rates and a host of other benefits.
When considering a chattel mortgage be sure to keep the following points front of mind:
Point 1 – Knowledge is power
Get fully informed about what a chattel mortgage is and how it works. This way you can make a truly informed decision about whether this finance tool is right for your goals and circumstances. Chattel mortgages are a popular small business tool for essential asset acquisition.
Point 2 – Pre-approval
There is no better negotiator than cash. Using Freedom Finances Inc. swift online pre-approval process you can have cash in hand bargaining power when it comes to negotiation the price of your asset. Plus with cash in hand, you need never feel pressured into purchasing your asset on the spot. You can take time to deliberate, negotiate and secure yourself the best possible deal.
When is a chattel mortgage appropriate?
A chattel mortgage is appropriate to finance goods for more than 50% business use. You (the customer) take ownership of the goods upon delivery. Meanwhile Freedom Finances Inc. secures the loan by registering a charge over the goods.
Who can benefit from a chattel mortgage?
Anyone wishing to finance the purchase of goods for business purposes. This includes businesses, companies, partnerships and sole traders. You can purchase commercial vehicles including cars, vans and other business equipment.
Chattel mortgage key features
- The title of the goods is held in your name
- 100% finance can be provided by Freedom Finances Inc.
- Customised repayment schedules are flexible and tailored to meet your individual circumstances
- A balloon or residual payment at fruition of the loan contact is available
- A Chattel Mortgage may provide tax benefits if the financed goods are used to produce assessable income
- Businesses which collect GST on a cash basis can claim an Input Tax Credit for the GST on the purchase price of the chattel mortgage. You can do this on your business’s next Business Activities Statement (BAS)
- Most of our states require stamp duty to be paid on the repayments of the chattel mortgage
- 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
- Seasonal cash flow can be incorporated into your repayment schedule
- A balloon or residual payment can be set up at the start of the chattel to decrease the interest paid
- You can pay lower instalments during the term of the contract and make a balloon payment at the end of the term
- Tax benefits are available to business if the asset generates a taxable income.
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. Calculate your chattel mortgage repayments.
Chattel mortgage finance
Apply for chattel mortgage finance.
Consult our competitive chattel mortgage rate chart.
- Interest rate is fixed throughout the term of the loan
- We have chattel mortgage interest rates from 5.55%*
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: