CHATTEL MORTGAGE

At A Class Business Finance, we offer chattel mortgages for businesses looking to purchase equipment and/or vehicles for their company.

What exactly is a chattel mortgage? 

A chattel mortgage – sometimes referred to as a commercial loan - is a loan given for the purpose of purchasing plant and equipment or a commercial vehicle. Any asset or commercial vehicle that’s primary use is for business purposes.

What is the purpose of a chattel mortgage?

A chattel mortgage is a loan for businesses who are looking to purchase equipment or a commercial vehicle but who don’t wish to purchase the asset outright. There are many reasons why a business may choose to take out a chattel mortgage such as preserving their working capital.

What does a chattel mortgage work?

When you take out a chattel mortgage, the financer funds the purchase of your commercial asset. You then are required to make repayments on the loan. With a chattel mortgage, you own the asset from the start. You can elect to make a deposit on the finance price, although this isn’t required.

If you take out a chattel mortgage with A Class Business Finance, the interest rate on the loan is fixed, as are the repayments during the lifetime of the loan. Balloon/residual payment options are also available.

At the end of your loan, provided all repayments and applicable balloon payments have been made, you will own the vehicle outright. This means that the commercial vehicle will no longer have any financier security held over it.

When repaying a chattel mortgage, there may be benefits such as tax deductions for depreciation and interest, so it is important to discuss these possibilities with your accountant.

How can we help you? 

Here at A Class Business Finance, we aim to simplify the finance process, and ensure you get the right type of loan for your needs. With over a three decades of experience in the finance industry, we offer competitive rates and solutions tailored to your business. Our team of experts take an active interest in understanding your requirements and future goals, and we hope to work with you in become trusted finance partners in your business.

If you’re interested in chattel mortgage options, why not arrange an appointment with our friendly staff today, and see for yourself what our A Class service is all about?

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