Chattel Mortgages
Fremantle

What is a Chattel Mortgage Loan?

A Chattel Mortgage is more than just a loan – it’s a financial solution that brings flexibility to business owners and self employed individuals. Chattel mortgage loans are a way to secure funds for acquiring vital assets, such as a business vehicle or equipment, while embracing the comfort of using the asset itself as collateral.

Tailored for businesses of all sizes, from self-employed individuals to small enterprises, this unique financing agreement offers an accommodating approach that caters to your business requirements. It allows you to confidently embark on your business ventures, knowing that a supportive financing option is readily available to drive your business forward.

How Does a Chattel Loan
Work?

Imagine a chattel loan as the key to immediate asset ownership – Once secured, you become the proud owner, while the lender maintains an interest until the loan is fully repaid. Depending on the individual circumstances, the loan amount can cover the purchase price, and you make regular repayments over an agreed-upon period that fits your financial goals.

Rest assured, the asset itself serves as security, providing reassurance to the lender. But here’s the exciting part: as you fulfill all the repayments, the lender removes their interest, granting you full ownership of the asset, free and clear.

Benefits of using a
Chattel Loan

Immediate Ownership: You gain immediate ownership of the asset being financed, allowing you to use it for your business from day one.

Flexible Repayment Terms: Chattel mortgages offer flexible repayment options, allowing you to customise the loan term and payment schedule to suit your cash flow.

Potential Tax Deductions: Depending on your business structure, you may be eligible for tax benefits such as claiming depreciation or interest deductions.

Preserved Working Capital: By opting for a chattel mortgage, you can preserve your working capital and use it for other business needs like operational expenses or expansion.

Competitive Interest Rates: Chattel mortgage loans often come with competitive interest rates compared to other financing options, reducing the overall cost of borrowing.

Easy Approval Process: The approval process for chattel mortgages is typically straightforward, making it easier and quicker to secure the financing you need.

What assets are eligible
for chattel mortgage loans?

Generally speaking, chattel mortgages can be used to finance a wide range of assets that are used for business purposes. While there may be some exceptions or restrictions depending on the lender’s policies, a chattel mortgage allows for financing various assets that are essential for business operations. Some of these are;

What happens when the chattel mortgage period ends?

Once you’ve made all the repayments, including any balloon payment you may have arranged, the vehicle or equipment becomes entirely yours to enjoy. The lender will remove the mortgage listing on the vehicle from the Personal Property Securities Register (PPSR), granting you complete ownership, free and clear.

From that point on, you have the freedom to use the car for both business and personal purposes, tailor it to your needs, and make it truly yours. Whether you decide to sell the vehicle, lease it for extra income, or trade it in for a new model, the choice is yours!