Chattel Mortgage
This is a fixed rate business loan for the acquisition of motor vehicles and equipment.
A charge is registered against the borrower as the lender takes a mortgage over the goods financed.
The borrower takes ownership of the goods when the lender pays the supplier. The borrower can claim interest and depreciation.*
A Chattel Mortgage suits borrowers that report GST on a cash basis as it enables them to claim the GST in full in their next BAS return.
*The information provided does not take into account your specific circumstances. We strongly urge you to consult your tax adviser regarding any taxation matters.