Chattel Mortgages
Advantages of a Chattel Mortgage
A chattel mortgage is a popular financing option for businesses looking to purchase vehicles or equipment without the need for an upfront payment. Instead, businesses make structured repayments over the loan term.
With a chattel mortgage, the borrower gains ownership of the vehicle or asset immediately upon purchase, offering flexibility and control. The lender secures the loan with a ‘mortgage’ over the vehicle, ensuring the asset acts as collateral.
This type of financing may provide businesses with tax benefits, such as deductions for depreciation and interest, in line with ATO guidelines.
At the end of the loan term, once any residual value is paid, your business retains full ownership of the asset. Alternatively, you can trade in the vehicle or refinance the remaining balance, depending on your needs.
Our MoneyQuest Randwick brokers have the expertise to help you navigate chattel mortgages and tailor solutions to meet your business objectives.
Get in touch today to discuss how we can help support your business growth through tailored financing options!
At MoneyQuest Randwick, we have access to many specialist chattel mortgage lenders. We can negotiate on your behalf and help you answer these important questions:
- Does the car need to be used exclusively for business?
- What contract terms will be best suited to you?
- Should you apply a residual value (balloon) to the contract?
- Does your business qualify for a ‘no deposit loan?
- What GST charges apply?
- How much can your business afford to borrow?
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