Chattel Mortgage

A Chattel Mortgage (often referred to as a Secured Loan or Bill of Sale) is a loan agreement where you borrow funds to purchase equipment. You provide security for the loan by way of a mortgage to the lender over the equipment financed.

Features of a Chattel Mortgage

	There is no need for a deposit
	You have the choice of flexible payment arrangements
	Neither the borrowing or the repayments attract GST

How can your business benefit?

	Ownership remains with you throughout the term of the loan, however the equipment is mortgaged to the financier
	The loan can be repaid at any time during the term of the agreement
	The interest component of the payments and the depreciation on the equipment are generally tax deductible, provided you use the equipment to generate assessable income