What's the difference between a Chattel Mortgage and a car loan?

A Chattel Mortgage is specifically designed for business use with GST and tax benefits, while a standard car loan is for personal use. With a Chattel Mortgage, you can claim GST upfront and depreciation, which isn't available with personal car loans.

Can I use a Chattel Mortgage for a used vehicle?

Yes, Chattel Mortgages can be used for both new and used vehicles, as well as other business equipment. The interest rates and terms may vary depending on the age and condition of the asset.

What deposit is required for a Chattel Mortgage?

Deposits are flexible and depend on your circumstances. Some businesses may qualify for no deposit finance, while putting down a deposit can reduce your monthly repayments and interest costs.

How long can I finance an asset with a Chattel Mortgage?

Typical loan terms range from 1 to 7 years. The ideal term depends on the asset's useful life, your cash flow requirements, and desired repayment amount.

What happens at the end of a Chattel Mortgage?

You own the asset outright once all payments (including any balloon payment) are made. There are no end-of-term decisions or residual values to worry about — the asset is yours from day one.

Is a Chattel Mortgage right for sole traders?

Yes, sole traders with an ABN can access Chattel Mortgages. If you're GST-registered and use the asset primarily for business purposes, you can benefit from the same tax advantages as larger businesses.

Chattel Mortgage

Own your business assets outright with GST and tax benefits. The smart choice for GST-registered Australian businesses.

Get a Quote Call +61 433 773 021

What is a Chattel Mortgage?

A Chattel Mortgage is a commercial finance arrangement where a lender provides funds for you to purchase a vehicle or equipment outright. You take ownership from day one while using the asset as security for the loan. It's one of the most popular finance options for Australian businesses due to its tax efficiency.

You own the asset from day one — immediate ownership means it appears on your balance sheet

Claim GST upfront — if GST-registered, claim the full GST credit on your next BAS

Depreciation benefits — claim depreciation on the asset value as a tax deduction

Interest deductions — loan interest payments may be tax-deductible as a business expense

Flexible balloon payments — structure your loan with lower monthly payments and a final balloon

How Chattel Mortgage Works

Apply Online

Complete our quick application with your business and asset details

Get Approved

Receive approval often within 24 hours with competitive rates

Purchase Asset

We pay the seller directly and you take immediate ownership

Make Repayments

Fixed monthly repayments over your chosen term (1-7 years)

Who Is Chattel Mortgage Best For?

GST-Registered Businesses

Claim the full GST credit upfront on your next BAS, improving cash flow significantly.

Businesses Wanting Ownership

If you want to own the asset outright from day one with no end-of-term surprises.

Those Seeking Tax Benefits

Maximise tax deductions through depreciation and interest expense claims.

Businesses With Stable Cash Flow

Predictable fixed repayments make budgeting straightforward.

Tax Benefits of Chattel Mortgage

Chattel Mortgages offer significant tax advantages for GST-registered businesses. Here's how you may benefit:

Claim the full GST credit on the purchase price upfront (if GST-registered)

Claim depreciation on the asset over its effective life as per ATO guidelines

Interest payments may be tax-deductible as a business expense

Balloon payments can reduce monthly outgoings while maintaining tax benefits

The asset appears on your balance sheet, which may improve your business's asset position

This information is general in nature and not tax advice. Please consult your accountant or tax professional for advice specific to your circumstances.

Compare Finance Options

Feature	Chattel Mortgage	Refinance	Business Loan
Ownership	Immediate	Existing asset retained	Not asset-specific
GST Claim	Upfront	Follows current structure	Typically not asset-specific
On Balance Sheet	Yes	No change	Usually liability-focused
Depreciation	Claimable	No change	Not asset-based
Balloon Option	Yes	Can be restructured	Sometimes
Best For	GST-registered asset purchases	Improving existing loan terms	Flexible working capital