Chattel Mortgage

A Chattel Mortgage or Bill of Sale Agreement can provide your business with an alternative method of funding for vehicle and plant & equipment acquisitions that is designed to optimise cash flow, while minimising the impact of GST. The Chattel Mortgage enables you to purchase the goods you need and acquire immediate ownership of the asset so that you can get on with your day to day business, without significant impact on your working capital.

Key Features:

Vehicle/equipment is available for immediate use in the business with no capital outlay; use the Chattel mortgage to purchase assets being used to generate income in your business. This facility enables you to spread the cost of acquisition over the useful life of the vehicle/equipment as it generates income; the minimum term is 12 months with a 84 month maximum term. You acquire immediate ownership of the asset.

You retain all the equity in the vehicle/equipment. Depreciation and interest are usually tax deductible. No GST is payable on individual instalments; you claim a direct input tax credit (ITC). Use the vehicle/equipment as security – in most cases freehold property can be left for other funding requirements.

Added flexibility of including other equipment under the one contract is available if required. Fixed interest rate for the term of the contract, which enables you to avoid market interest rate increases and assists you with budgeting. You choose the supplier and negotiate the price independently; we then pay your supplier.


Conserve your cash resources – you can choose to finance 100% of the invoice price OR contribute a deposit in the form of cash or trade-in allowance to reduce your payments. You can structure the transaction so that the amount financed is fully or partially amortised via a balloon payment at the end of the contract term.

You can elect to pay the GST portion of the invoice price from working capital or fund it as part of the loan amount (the loan can be structured so that when the income tax credit is received, it is repaid off the loan to reduce the debt). The repayments can be tailored to suit business cashflow demands and seasonal or irregular income, making it easy to manage.

Option to repay the loan early during the term of the contract (Prepayment Conditions apply). You can structure transactions with payments calculated in advance or in arrears. Direct Debiting of payments is available to save you time.

Terms and Conditions apply and are available on with finance documentation or by request. Statements made concerning tax matters are for general information purposes only and do not constitute tax advice. You are recommended to obtain advice from your professional advisor on tax matters.