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Chattel Mortgage Finance
This type of finance is where a loan is raised to purchase any new or used Truck or Heavy Vehicles using the equipment as security.
This type of loan uses the moveable chattel as security as opposed to bricks and mortar security and gives the clients notable taxation benefits.
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Chattel Mortgage Finance
Overview of a Chattel Mortgage for Truck Finance
This is a fundamental and highly advantageous form of Truck and Heavy Vehicle Finance used to purchase any new or used equipment. Essentially, a loan is raised where the asset itself—the truck or heavy vehicle—is used as the primary security for the finance. This model is ideal because it uses the moveable chattel as security, as opposed to requiring traditional 'bricks and mortar' or real estate security.
The core benefit of this finance structure lies in the significant taxation advantages it offers Australian businesses. Since the client technically owns the asset from the start, they are often able to claim the full GST input tax credit on the purchase price in their next Business Activity Statement (BAS), alongside claiming depreciation and interest expenses against their business income.
We ensure that this finance product is structured correctly for your business, securing quick approval while maximising your commercial benefits. By choosing this approach, you gain immediate access to the equipment you need while capitalising on the notable financial and taxation efficiencies it provides.
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Apply Now for Online Pre-Approval up to $500K without affecting your credit score.
Asset Security
Features of a Chattel Mortgage Facility
- Full gst on the purchase price claimed as a gst off-set on next lodged business activity statement
- Depreciation and interest is claimed as a tax deduction at the end of the financial year on customers profit and loss statement reducing tax paid to the ATO
- Term of a Chattel Mortgage can range from 12 months to 84 months - fixed interest rate applies
- Ownership of the asset is transferred to the client at time of purchase payments can be made weekly, monthly, quarterly, yearly or structured (i.e. agreed payments over different times of the year)
- Balloon payment at the end of the term can be applied to the loan to reduce monthly payments
- Client can contribute a deposit towards the purchase (either through trade in or cash) or fund 100% of the cost of the asset
- A Chattel Mortgage can also be referred to as a Commercial Loan Agreement
Tax Advantages
Benefits of a Chattel Mortgage Facility
- Financing trucks or heavy equipment using a chattel mortgage loan product (as opposed to using own funds) will preserve cash flow and maximise working capital position
- Flexible payment options allow clients to make payments suitable to their cash flow
- Fixed payments allow businesses to accurately project income and expenses going forward
- Option of a balloon payment at the end of the term reduces payments over the term of the loan
- Chattel Mortgage loans for heavy vehicles can be assessed on either a full doc or low doc basis
- As these types of loans use the equipment as security, it allows clients to free up property equity to pursue other investment opportunities
- As these types of loans use the equipment as security, it allows clients to free up property equity to pursue other investment opportunities
- Balloon payment can be paid out at the end of term (by way of trade in or cash payment) or refinanced (by way of new loan agreement)
- Tax deductibility at end of the financial year as client can claim depreciation and interest as on their profit and loss statement
We Make Heavy Vehicle Finance Quick and Easy for Business Owners Australia Wide.
Start Now and complete our Quick Assessment Form to obtain a Pre-Approval up to $500K – decision within a few seconds.
Alternatively, you can call one of our Finance Consultants to discuss your funding scenario.
Example Breakdown
Example Funding Scenario
- Purchase Price of new Mack Superliner – $540,000 (gst inc)
- Finance Type – Chattel Mortgage
- Loan Amount – $540,000 (gst inc)
- Term – 60 months
- Balloon – 30% or $162,000
- Payments – monthly in arrears
Outcome
- Client could claim $49,090.91 (full gst amount on the invoice) as an input tax credit on their next lodged business activity statement (gst calculated by $540,000 / 11 = $49,090.91)
- Depreciation and Interest claimed as a tax deduction on the company profit and loss statement – approximate reduction of taxable income by $60,000 (depending on the depreciation method used by the clients accountant)
- The 30% balloon payment applied to reduce monthly payments on the loan over the 5-year period (payments are only calculated on $378,000 – ie purchase price $540,000 less the balloon amount of $162,000)
- Fixed interest rate allowed client to easily budget for ongoing expenses
Customer Reviews
Our customers say it best. Find out what it's like dealing with the Experts in Truck Finance. You could be the next success story.
Nathan you are fantastic to deal with. Always prompt with deals never a hiccup. After 8 truck deals will never use another broker. Keep up the great work you make my life stress free.
TH
Tracey Hall
Scone Equine Transport Pty Ltd
I have been dealing Heavy Vehicle Finance since 2014 and have found them be nothing short of amazing.They have funded various trucks and trailers for me over the years and its a fantastic feeling to know that I still have the same account manager after all of these years of business.It is very good to know that a finance approval is only a phone call away.
CW
Colin Wallace
Palanquin Pty Ltd
I have used the team at Heavy Vehicle Finance twice now for our financing needs for prime movers and side tippers. A Great team to work with and very prompt and professional. We will use again in the future.
JC
James Coustley
JJC Civil
I have used Nathan and his team for multiple purchases for our earthmoving company and Nathan has gone above and beyond to help us with expanding our business. I couldn’t recommend Nathan more highly.
SW
Sam Wood
Sureflo Plumbing & Roofing Contractors Pty Ltd
We used Heavy Vehicle Finance for the purchase of our Truck. They went above and beyond for us and made sure that the process was as stress-free as possible. The entire interaction was nothing short of amazing. We will definitely be using them again in the future.
MM
Meagan McNicholl
Next Gen Transport Pty Ltd
Can’t thank Nathan enough for how fast and professional he was with organising my finance for my new truck. He was straight to the point with no stuffing around. Highly recommended
TH
Tim Hartas
Hartrax Contracting Pty Ltd
Heavy Vehicle Finance Calculator
Looking to buy a New or Used Heavy Vehicle? Try our Simple Heavy Vehicle Loan Calculator to estimate your weekly payments and take the guesswork out of your next Heavy Vehicle purchase.
Why Us?
Unlock the Benefits of Heavy Vehicle Finance for Your Chattel Mortgage Loan
- Heavy Vehicle Finance backed by 20 Years Industry Experience. Heavy Vehicle Finance that will work for you.
- Quick, Easy and Obligation Free. Heavy Vehicle Finance Pre-Approvals up $500K.
- We deal with Owner Drivers and Fleet Operators Australia Wide. We will help you save thousands on your next Heavy Vehicle Loan.
- We're trusted across the Transport Industry as a leading provider of Heavy Vehicle Finance. Our applicants receive funding options tailored to their business needs, delivered efficiently by experts who understand Heavy Vehicle Industry.
- Typically No Financials are required for loans up to $500K and our unconditional approvals take only 24 hours.
- Our flexible policy matrix will give you greater access to capital—so you can secure the Heavy Vehicle and Heavy Equipment you need to grow your business faster and with more confidence.
- Our customers are assigned a dedicated Relationship Manager to help guide them through the process from start to finish.
Let us Finance
the Road to Your
Future
Complete our Simple Quick Assessment Form and let us go to work on finding the best Finance Deal on your New or Used Heavy Vehicle.
With over 20 years experience and thousands of deals done, we are on your side to get the best possible rate.
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