Chattel Mortgage Print

The Chattel Mortgage is for customers using the goods for more than 50% business use.
However like the secured loan contracts, title to the goods passes to the customer upon delivery.

The finance provider does not own the goods, but can secure the loan by registering a charge over the goods with the ASIC.

Features Benefits
The customer, not the finance provider, holds title to the goods. The customer owns the goods from the beginning of the contract.
100% finance can be provided. No deposit is required although the finance provider may ask for one in some circumstances. The customer can obtain the goods for a minimal capital outlay. Customers can use their capital for other purposes.
Repayment schedules are flexible, and can be structured to suit the customer. Customers can match repayments to suit their seasonal cash flow.
'Balloon' payments at the end of the term can be arranged. The balloon figure is determined by the amount financed, the nature of the goods and the length of the term. The customer can pay lower installments during the term of the contract, then pay the larger 'balloon' payment at the end of the contract term if this suits his/her financial situation.
Refinance - the customer may also refinance the balloon if they so desire. A benefit of refinance - The financier's approval policy, follows a process whereby the customer's details are verified and new financials are not necessarily required.
A Chattel Mortgage may provide tax benefits as the financed goods are used to produce assessable income. Both depreciation and the interest component of the repayments may be able to be claimed on income tax. Customers may be able to make use of taxation benefits. The finance provider can supply the customer with the total amount of interest paid in each financial year.
Customers have the option of paying monthly, quarterly, half yearly, yearly or irregularly. This is set up at quoting/application stage and clearly documented in the contract for the customer's reference. This allows accurate budgeting, as the customer is aware of the repayments they will incur.
The terms of the Chattel Mortgage are flexible and can be negotiated subject to the finance provider's approval. Customers can negotiate higher or lower repayments and balloons, which allows them more flexibility in budgeting and enables them to meet seasonal cash flow variations.