A Chattel Mortgage is also known as a Goods Mortgage or a Commercial Loan.

Since the introduction of the Goods and Services Tax, Chattel Mortgage agreements have been utilised to allow those registered for GST on a cash accounting method to purchase goods/equipment and be able to claim an Input Tax Credit via the Business Activity Statement and therefore comply with the Australian Taxation Office requirements.

Advantages:

• Chattel Mortgage can be tailored to suit the individual needs of clients.

• Finance terms up to 7 years

• Monthly repayments, structured repayments, seasonal or irregular repayment arrangements

• Repayments and interest are fixed for the term of the loan

• Finance can be arranged for the full cost of the goods including the GST

• The ability to claim the Input Tax Credit via the Business Activity Statement if the borrower is registered for GST under the cash accounting method

• Borrower owns the goods and allows the lender to hold the goods as security for the loan

• Finance can be for either new or used equipment

• A deposit and/or trade-in proceeds can be introduced into the finance transaction

• Balloon payments can be structured as a final payment to reduce monthly, seasonal or irregular payments

Benefits to the borrower:

• Fixed repayments and interest allow the borrower controlled cash flow management

• Interest on the agreement and depreciation on goods are tax deductable

• Preserves working capital for business growth

• Finance term can be tailored to meet the life of the goods