Types Of Finance
A chattel mortgage is the most common type of finance used by businesses when purchasing motor vehicles and equipment. It is a commercial finance product whereby you make regular repayments on the loan and the lender has a “mortgage” over the asset. With a chattel mortgage, you can claim GST, interest and depreciation components in some scenarios.
Lease finance is applicable where buyers pay for the use of the asset or equipment. The buyer does not own the vehicle/asset during the term of the lease and pays a monthly lease payment.
Types of Assets
Cars, utes and vans
Trucks, trailers and buses
Tractors, trowels, cultivators and more
Construction and access equipment
Yellow Goods, Excavators, loaders, forklifts, scissor lifts and more
Computers, medical equipment, office fit-outs, shop fit-outs, telecommunications, IT and manufacturing
What are the general guidelines?
1. Goods must be identifiable – serial numbers preferred
2. Vendors must be verified
3. Valuations – when purchasing from non-verified vendors/ private sales
What type of security can be taken?
1. Specific equipment security registered on PPSR
2. Guarantee & Indemnity
3. General Security Agreement (when required)