Chattel Mortgage is a very commonly used type of commercial finance. It can be used to finance a wide range of business goods and assets including many types of equipment, motor vehicles, trucks, boats and marine vessels. In most cases, depending on individual lender requirements, Chattel Mortgage can be used to purchase new and used items, purchased through a dealer, a private seller, another business or at auction.
This finance types suits many types of businesses that use a cash accounting method. This includes:-
The title may sound mysterious but the concept is relatively straight forward. Chattel derives from the olde world word for goods. Mortgage refers to the lenders title over the goods or the finance. The lender extends finance (mortgage) to the borrower for the purchase of goods (chattel) and uses the goods as security against the loan.
Depending on the goods being purchased, most banks and finance companies that operate in the business finance sector offer Chattel Mortgage.
A professional finance broker is ideally positioned and qualified to source you a Chattel Mortgage and offers many benefits and advantages over you sourcing your own loan directly with the bank or lenders. To source a number of loan offers in order to compare will be time-consuming for yourself, while a finance broker has access to multiple sources and is better placed to handle this for you.
If you do have specific reasons for wanting your transactional bank to extend your Chattel Mortgage, most finance brokers will handle the negotiations with your bank on your behalf.
We know people who operate in the finance broking area and we welcome your enquiry for further information or contact details to assist you.