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Chattel Mortgage / Commercial Loan

A Chattel Mortgage is a product available to companies, partnerships and sole traders that need purchase vehicles & equipment ffor their business. With a chattel mortgage, you take ownership of a vehicle or asset from the start. 
Chattel mortgage is a form of secured loan where the finance provider lends you funds to purchase a vehicle, for instance. The ‘chattel’ is the vehicle, and the ‘mortgage’ is a fixed floating charge the lender registers with ASIC to provide security against your borrowing. While your agreement is running, that security helps to keep interest charges lower, and when you’ve paid off the loan, the mortgage gets lifted – giving you clear title to the vehicle. Chattel Mortgage interest rates get fixed for the lifetime of the loan. Repayment terms run between one and five years

Commercial Hire Purchase / Asset Purchase

Hire purchase agreements are a purchase by instalment facility providing the customer legal title to the equipment after the completion of all finance repayments. For tax purposes, the customer is regarded as the owner from commencement. As long as the equipment is used to generate income for the business the depreciation and interest charges that relate to the hire purchase are tax deductible. Goods are invoiced to the lender and the customer normally pays fixed instalments over an agreed period.

Rental Agreement

Generally used for financing high depreciating and/or high obsolescence equipment. You make fixed rental payments to the Financier over an agreed term. The Legal ownership of the equipment is the Financier, which allows you to claim the asset as a tax deduction if the equipment is used for business purposes as it is off-balance sheet funding.

Operating Lease

An operating lease is generally utilised when a customer requires the use of equipment in order to fulfil a fixed term work contract.  The item, often specialised in nature, is leased for use for a set period in return for rental payments. At the end of the term the item is returned to the lessor with no further financial obligation.