Chattel Mortgage are available for business entities.
The customer must hold and ABN, ARBN OR ACN and the product must be used primarily for business purposes.
Key points
• Chattel Mortgages are available for business entities.
• The customer must hold an ABN, ARBN or ACN.
• The product must be used primarily for business purposes.
• The customer owns the asset from the start of the agreement.
| DETAIL | |
| Purpose | Finance for companies and business professionals who need motor vehicles, trucks, earth moving, agricultural, industrial plant or professional equipment. |
| Term | Minimum of 12 months to a maximum of five years. |
| Minimum amount financed | $7,500 |
| Age of asset | Motor vehicles – maximum age of 12 years at end of loan term.
Other equipment – age limit based on type of goods and intended use. Please refer to your broker manager for more information around the other goods age. |
| Interest rate | The interest rate is fixed for the duration of the loan. |
| Payment frequency | Monthly, quarterly, semi-annual, annual, seasonal or irregular. |
| Payment methods | The preferred method is direct debit. Other options include periodical payment from a nominated account and BPAY®. |
| Deposit | Customers can make a deposit, or a deposit may be an approval condition. |
| Can insurance, fee and charges be financed? | Yes |
| Balloon/residual value | Yes, balloon payments are optional on contract terms up to five years. |
Benefits to the client:
• The client owns the asset from the start of the agreement.
• Preserves “working capital” – no deposit, 100 per cent finance.
• Easier cash flow management – payment terms can be matched to income flows.
• Item being financed is normally sufficient security for the finance and, therefore, won’t tie up other assets.
• The client may be able to claim taxation benefits.