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Chattel Mortgage - Equipment Finance Loan

11 Jan Today's
best rate
Finance Equipment From
2.79 %
*The Interest Rate is calculated on a Secured Loan for business use, effective 16/01/2021 and subject to change. WARNING: The interest rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different interest rate.

Jade Equipment Finance offers Chattel Mortgage facilities as a flexible and workable commercial loan solution for businesses of all sizes to purchase or refinance equipment.

 The lender provides financing to the business to purchase the equipment, referred to as the ‘chattel’, and holds a ‘mortgage’ over that equipment until the loan is finalised. The security interest is registered by the lender with the Personal Property Security Register until the loan is finalised.

The business/borrower, takes ownership of the equipment once the purchase is made and loan agreement signed and makes monthly repayments.

Chattel Mortgage Key Features

  • All Chattel Mortgages feature the Jade trademark best interest rates.
  • Extremely suited to businesses that implement a cash accounting system.
  • Fixed equipment finance interest rates for the duration of the loan
  • Fixed monthly repayments for the term of the loan. Your Jade Equipment Finance consultant will work with you to negotiate the best option for your cash flow, normally from 24 months/2 years through to 5 years or 60 months.
  • No deposit is required by the lender, however, paying a deposit will reduce the overall loan amount and hence lower the monthly repayments.
  • A fixed balloon amount is payable when all monthly repayments are finalised. This is set in discussions between yourself and your Jade consultant and can be either a percentage of the total purchase price of the equipment or a fixed dollar value. Note you can choose not to have a balloon.
  • The larger the residual, the lower the monthly repayments. The value of the equipment at the time the residual will be due, ie in 4-5 years, should be taken into consideration.
  • The residual/balloon is established when the loan agreement is negotiated and is fixed.
  • The total amount of GST on the equipment price may be claimed on the ensuing Business Activity Statement.
  • Depreciation on the equipment is accounted as a tax deduction at end of financial year.
  • On paying the final monthly repayment, the residual is to be paid to finalise the loan.
  • Residual may be re-financed.

Finalising a Chattel Mortgage

  • When you have paid the final monthly repayment, if you have elected to include a balloon in your loan structure, then it is due to be paid.
  • When the balloon has been paid, the lender releases the ‘mortgage’ and security interest as registered with PPSR.
  • To conserve cash flow, the residual may be re-financed through Jade Equipment Finance via another Chattel Mortgage, equipmenmt lease financing, Commercial Hire Purchase or unsecured business loan.

Your Jade Equipment Finance Consultant is readily available to explain equipment Chattel Mortgage for you. However, we advise all clients to consult with their own accountant or financial advisor for specific direction in regard to your business.

Chattel Mortgage is available for equipment purchases across a wide range of industries, for businesses of all sizes.

Speak with a Jade Equipment Finance Consultant to discuss a Chattel Mortgage for your proposed equipment purchase. Call 1300 000 003

Chattel MortgageCalculator

Making use of this calculator is based on the user's understanding and also consent that the outcome displayed does not suggest a finance quote; it does not imply an application for any kind of loans has actually been lodged; it is not a suggestion that any type of loan application has been approved. The format of this calculator does not consider certain details concerning any certain personal financing application or any kind of lender fees and also charges. It is formatted to produce a general result based upon general information as well as values solely.
After lodging a formal lending application, the quote and payment amounts that you may possibly be given might vary from the finance quote accounted by this device.
The device is not suitable for estimations on lending that are established on a passion only basis. The format is purely established to compound interest for a set time period based on the values typed in by the customer.
The calculator is not planned as a device for financial decision making. Users that call for finance advice should seek a specialist economic consultant in relation to their circumstances. To apply for a loan as well as get a quote based upon your personal requirements, the individual must get in touch with Jade and have their specific application reviewed by among our Jade consultants.

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