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How does it Work?
A chattel mortgage is an agreement whereby you, the customer take ownership of the goods upon delivery, and the financier is able to secure a loan by registering a charge over the goods.
Who can benefit?
- Anyone wishing to finance the purchase of goods for business use.
Key features:
- You hold the title to the goods.
- 100% finance can be provided.
- Repayment schedules are flexible and can be structured to suite your needs.
- Balloon payments at the end of the term can be arranged.
- A Chattel Mortgage may provide tax benefits if the financed goods produce taxable income.
- The term of the Chattel Mortgage is flexible (maximum term 60 months).
Benefits:
- You own the goods from the beginning of the contract.
- You can obtain the goods for a minimal capital outlay.
- You can match repayments to cashflows.
- You can pay lower instalments during the term of the contract with a balloon payment at the end.
- Repayments may be either in advance or in arrears.
GST:
- Whether you are on a "cash" or "accrual" method for GST, with a Chattel Mortgage you can claim the full amount of GST on your B.A.S. Statement. You can then use the GST refund to reduce your monthly instalments.
Interest rates:
- Interest rate is fixed throughout the term of the loan.
Fees and charges:
- Establishment fees are payable with no applicable GST.
- An ASIC fee is applicable for companies (varies between states).
- Stamp duty is payable on amount financed.
- State government charges apply.
Repayment Schedules:
Repayments can be made:
- Monthly
- Quarterly
- Semi Annually
- Seasonal
- Irregular
Want to Know More?
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