Chattel Mortgage

A Chattel Mortgage is a fixed-rate loan for the purchase of business equipment. The equipment belongs to the client and the loan is secured by the lender who may lodge a charge over the equipment. A Chattel Mortgage is best for those businesses which are run on a cash accounting basis for GST. In contrast to a CHP contract, under a Chattel Mortgage the GST on the purchase can be claimed on your next BAS claim

The advantages of a Chattel Mortgage are:

• You own the equipment through the term of the agreement
• Freedom to choose a deposit with a bulk payout or finance 100% of the cost
• Tax benefits through interest paid and depreciation on the equipment*

* Tax treatment may vary according to circumstance. Please consult your accountant or tax agent