Our guide on the benefits of chattel mortgages
With the right terms, we’ll help you make the right choice
When it comes to moving your business forward, getting the right loan for a vehicle or equipment can make a world of difference.
A chattel mortgage can be a great option – with more benefits than meet the eye. At Aussie, we can talk to you about whether it’s a solution that works for you and your business.
How does it work?
With a chattel mortgage, your loan is secured against ‘goods’ – often a vehicle or item of business equipment. We’ll work with a lender that provides the funds to purchase these goods. This means while your business takes ownership of the goods, the lender takes a mortgage over the chattel/goods.
So what are the benefits?
Along with immediate access and eventual ownership (once the contract terms have been met), there may be some benefits a chattel mortgage could offer your business:
- GST refunds – which may in some instances be paid into the loan to reduce monthly instalments and interest charges
- Flexible contract terms – up to five years
- Tailored upfront deposit and/or final instalment according to your needs
- Seasonal payments
- Interest charges and depreciation – which may be deductible for tax purposes if you’re using the asset for generating income
- Possible entitlements to input tax credits on the GST component of the vehicle or equipment – as long as your business is registered for GST
- Working capital that isn’t tied up in large equipment purchases.
Are there tax benefits?
Possibly – but only if your business is registered for GST. To explore the tax implications on a chattel mortgage, it’s best to speak to your accountant or someone who understands the financial situation of your business.
We’ll help make ownership a reality – sooner.
Chattel mortgages can be a great option for companies, sole traders, trusts and partnerships registered for GST. So if this sounds like you, we can offer personalised payment terms, as well the option of making an upfront deposit or balloon payment during your loan period.
Want to know more?
The good news is that talking to Aussie won’t cost you a cent. So if you’re thinking about asset or equipment loans, or you’d like more information, contact us on 1300 44 55 66 or enquire online today.