A chattel mortgage is the most common finance type we offer and may provide significant financial advantages over a consumer loan, providing the asset being purchased will be used primarily for business purposes (i.e. over 50% business purpose).

A chattel mortgage works much like a normal mortgage. You take ownership of the asset at time of purchase and the lender simply takes a ‘mortgage’ over it until the loan is paid in full. One of the biggest benefits of ‘owning’ the asset is the ability to claim things like interest and depreciation.

Businesses that account for GST on a cash basis might also be able to claim GST on the purchase price of the asset on their next Business Activity Statement. It is important to understand these tax implications prior to choosing the type of finance you require. Speaking with your accountant prior to your purchase will help you decide what type of finance you require.