Chattel Mortgage is a secured loan that is wholly or predominantly for business use.
The financier advances the funds to the borrower to purchase the vehicle, or other asset, whilst the financier takes a mortgage, or charge over the asset
Ideal for companies and business professionals who need motor vehicles, trucks, earth moving, agricultural, industrial plant or professional equipment, with the intention of ownership at the end of the finance term.
Chattel Mortgage is a great option for customers, as you can use a vehicle without drawing from your cash flow. Payments can be either fixed or flexible, depending on your cash flow requirements. You can opt to reduce monthly or regular repayments using a balloon payment (residual value) payment, due at the end of the loan term.
G-Force Finance Solutions offers competitive finance and leasing agreements on both new and used assets. We have access to some of Australia’s premier finance & leasing products from over 15 of Australia’s trusted financial lenders and can recommend the right agreement to suit your circumstances.
Chattel Mortgage Features
Chattel Mortgage is a business use loan product, available over a range of terms, and with a range of different ‘balloon’ payment options at the end of the term. The business owns the vehicle (the ‘chattel’) from day one, and the financier uses it as security (the ‘mortgage’) over the loan.
Various Loan Terms & Lenders
With our broad access to over 15 Lenders, we have access to flexible terms from 2 to 7 years across a wide range of products with or without a Balloon/Residual Payment. You can borrow up to 100% of the cost upfront, including registration, insurance and on-road costs.
Under a Chattel Mortgage agreement, you will pay off the asset over time. Once you’ve made the final balloon payment, you own it. The legal ownership of the asset rests with you during the contract period, the customer can enjoy the benefits of full ownership. The customer is responsible for all the costs associated with the asset including registration, insurance and maintenance.
Preserve Cashflow & Capital
Preserves ‘working capital’—no deposit, 100 per cent finance. Easier cash flow management—payment terms can be matched to income flows. Item being financed is normally sufficient security for the finance and, therefore, won’t tie up other assets.
As the vehicle, would be a capital asset, none of the principal from the repayments would be tax deductible; however, the depreciation and interest is generally deductible, depending on the proportion of business use. If the business is registered for GST, the full GST component of the purchase is claimable as an input tax credit in the first BAS following the acquisition* seek advice from your accountant.
Help you get the Pre-Approval
Our application process is quick & easy. G-Force Finance Solutions has national coverage, systems and advisers that can get your application approved fast. If you haven’t yet found the right vehicle or asset, that’s ok as we will help organise pre-approval, knowing exactly what you can afford, so you can find the right asset with peace of mind.
Important Factors to Keep in Mind
Just as you would with a standard loan, it’s important to work out how much you can afford to borrow on your loan. Work out how much you need to borrow and create a budget to work out how much you can afford to pay back each month.
It’s also worth considering the tax benefits. You may be able to claim tax back on the interest you pay on the loan, on the assets running costs, and depreciation. The GST component may also be tax deductible.
We are ready when you are ready to make the move – your advisor will prepare the paperwork, liaise with the lenders every step of the way to the settlement.
Our advisers will discuss your personal circumstances with you, such as your income, outgoings, future and savings, together with the end to end process and steps involved – we seek to understand your short, medium and long term goals.
Visit our Loan Calculators today and take the next step by clicking the “Quick Quote” Button and our finance advisers will then get to work on sourcing you a tailor-made package from our trusted panel of lenders and will work tirelessly to get you the right solution.