Understanding Chattel Mortgages - Features and Benefits
If you're looking to buy a car for your business, a chattel mortgage is an option that may be beneficial at tax time. But what exactly is a chattel mortgage? We take a closer look at the features and benefits of the loan.
What is a chattel mortgage?
A chattel mortgage is a loan used to purchase business equipment (often a car or ute), which is then used as security against the loan. Similar to a regular mortgage, lenders provide funds to purchase the asset (known as the chattel). They then register their security interest on the Personal Property Securities Register (PPSR) for the life of the loan. When all loan repayments have been made, you then become the owner of the asset. Essentially, it’s similar to a secured consumer loan, however designed specifically for business customers.
Who are chattel mortgages for?
Benefits of chattel mortgages for business owners
A chattel mortgage is especially popular finance option for self-employed or small business owners, as it provides flexibility around repayments. In some cases, 100% of the loan may be financed – so no upfront costs need to be put down. Other benefits include:
We're here to help
Here at Pepper Money, our chattel mortgage is known as a commercial loan & mortgage. To learn more about our chattel mortgage rates, call on us on 137 377 or visit our commercial lending section.
Did you know? We also offer financing for businesses that require funding for heavy machinery and a wide range of other business equipment.
Information provided is factual information only and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser.
All applications for credit are subject to credit assessment, eligibility criteria and lending limits. Terms, conditions, fees and charges apply.
Pepper Money Personal Loans is a brand of Pepper Money Limited. Credit is provided by Now Finance Group Pty Ltd, Australian Credit Licence Number 425142 as agent for NF Finco 2 Pty Limited ACN 164 213 030. Personal information for Pepper Money Personal Loans is collected, used and disclosed in accordance with Pepper’s Privacy Policy & the credit provider’s Privacy Policy.
Pepper Money Limited ABN 55 094 317 665; AFSL 286655; Australian Credit Licence 286655 (“Pepper”). All rights reserved. Pepper is the servicer of home loans provided by Pepper Finance Corporation Limited ABN 51 094 317 647. Pepper Asset Finance Pty Limited ACN 165 183 317 Australian Credit Licence 458899 is the credit provider for asset finance loans.
Pepper and the Pepper Money logo are registered trademarks of Pepper Group Assets (Australia) Pty Limited and are used under licence.