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A Chattel Mortgage is a commercial finance product that is commonly used by businesses to finance a vehicle. A Chattel Mortgage from Rapid Finance could offer a range of benefits, including:
A Chattel Mortgage is a finance product whereby a lender provides funds to a business for the purchase of a work vehicle, also known as a 'chattel'. The business then repays the borrowed amount over the course of a pre-determined loan term.
Our specialist consultants will guide you through the process of a chattel mortgage. The benefits of chattel mortgage car loans include;
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Please note: This is an estimate provided for illustrative purposes only, and is based on the accuracy of information provided. It does not constitute a quote. Additional fees and charges may apply dependent on your individual circumstances. Fees such as early repayment costs and establishment fees are not accounted for in the examples of weekly repayments. Interest rates may be subject to change throughout the term of the loan.
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Read case studyA Chattel Mortgage is a type of car loan commonly used by businesses to finance vehicles that are intended for commercial use. Under a Chattel Mortgage, a lender will forward funds to their client to be used specifically for buying the chosen vehicle.
Read moreAdvice for business owners on how they can get a car loan that matches their business and situation.
Read moreThere are many advantages to a chattel mortgage, including low costs and potential tax deductions.
Read moreThe customer, typically the business owner, is recognised as the owner of the vehicle. This gives them a significant amount of flexibility in terms of how and when they make repayments. And that allows the customer greater freedom to tailor repayments to the financial circumstances of their business.
Similarly, the size of a customer's deposit and 'balloon' payment can be worked out with the lender. So the customer can negotiate how much they would like to pay now and how much they would like to pay later.
Under a Chattel Mortgage, Goods and Services Tax (GST) is charged on the purchase price of the vehicle. Conversely, GST is not charged on any repayments or final 'balloon' payments. This type of car loan is therefore understandably popular with business owners who have the ability to account for GST.
Customers that are registered for GST on a cash or accruals basis can in many cases claim the GST in the purchase price of the vehicles as an Input Tax Credit. They can do this on their next Business Activity Statement (BAS). Consult a tax professional for specific business tax advice.
Yes, so long as the vehicle is used for business purposes and the requirements of the Australian Taxation Office (ATO) are met. However, business owners can only claim up to the depreciation limit. For the current depreciation limit, visit the ATO website or consult a tax professional.
Yes, 100% finance (or no-deposit) options are available. Additionally, eligible customers can apply to borrow more than the vehicle value and this money can be used to purchase extras such as insurance or necessary vehicle modifications.
100% finance is also possible for those with a bad credit history. However, eligibility will differ on a case by case basis. Your application will be strengthened if you can demonstrate your ability to make repayments without difficulty. So it's important to have your finances in order prior to applying.
The amount you will be able to borrow will depend on a variety of factors. Everything from your business's cash flow to the type of vehicle you are looking to purchase can affect the amount you can access.
To get the most accurate estimate on how much you can borrow, speak with a Rapid Finance loan specialist. They can compare a range of loans and seek out a finance solution that matches your situation.
With a Chattel Mortgage, you can choose from a wide range of vehicles, including cars, vans, farm equipment and earthmovers. Depending on your business and industry, there will be numerous options to select from.
You can also purchase used vehicles. However, this may affect the type of loan you are eligible for and how much you can borrow. Since your vehicle is used as security against the loan, everything from the vehicle's age to its condition can influence a lender's decision.
At Rapid Finance, we specialise in making finance fast, simple and easy. Exactly how long your approval will take, however, will depend on the circumstances applying to you and your business.
You can quicken the process by having all relevant documentation ready-to-go before you apply – this includes ensuring information is complete and up to date.
Yes. We've been able to help numerous business owners with unique financial situations, such as those who are self-employed and those that have a complicated credit history. Our expert team can compare a variety of loans and seek out a solution which is suitable for your circumstances.
It may also be worth considering other options such as a Commercial Hire Purchase, Finance Lease or Novated Lease. For more information on any of these options, speak to your Rapid Finance loan specialist today.
To get started, submit an application on our website. One of our loan specialists will be in touch shortly to discuss your Chattel Mortgage options. Or, you can give us a call on 1300 467 274
Have more questions about Chattel Mortgages? Call the team on 1300 467 274 and we'll be happy to help.