A Chattel Mortgage is an agreement where the financier to take a legal charge over goods (chattels) owned by a borrower to secure repayment of an advance made to the borrower against a particular asset. Title to the goods remains with the Borrower.
A Chattel Mortgage suits businesses that use the cash method of accounting (they record business income and expenses as and when they occur) as it allows them to claim the Input Tax Credit (ITC) relating to the GST expense in the next BAS.
This is our most popular finance product and favoured by many accountants over lease and rental offered by vendors. Contact us for details.