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Chattel Mortgages

Advantages of Chattel Mortgages

A Chattel Mortgage works much in the same way a commercial loan does – you pay back the loan in installments on a monthly basis.  You can lower your monthly repayments with a residual value or “Balloon” payment. 

Benefits of a Chattel Mortgage

  • Provided the equipment is used 100% for business purposes,  you are able to claim the interest paid on the facility and depreciation on the equipment as a tax- deduction
  • If the Business is registered for GST,  you may be eligible to claim some or all of the GST upfront, rather than over the term of the loan.
  • Deposits are optional but not generally required, and you can buy the equipment at any time during the agreement. You may also choose a balloon payment at the end of the term to decrease your monthly commitments.

* The above should only be used as a guide, please contact your Accountant or Financial Adviser for more information