Chattel Mortgage

By definition a chattel is any tangible, movable property (as opposed to real estate).

A movable property or chattel mortgage is essentially a business loan specifically for the purpose of purchasing a new or used vehicle or other large item of business equipment.

Ownership is yours on purchase and therefore the (say) vehicle becomes an immediate tangible business asset whilst the finance provider holds a mortgage over the subject asset or chattel.

The greatest benefit of a movable property ( chattel ) mortgage is that it allows businesses to claim the full input tax credit from G.S.T. incurred expenses in their next B.A.S.

Other benefits include :-

* Interest and depreciation are tax deductible

* No capital outlay

* Flexibility, you have the ability to finance the full purchase price, include an upfront deposit or trade-in whilst a balloon payment may also be placed at the end of the term to minimise your commitment.


Chattel mortgages are an excellent proposition for small businesses where the cost of the desired item prohibits a cash purchase.

Contact us to discuss the possibilities, we strongly urge you to seek advice from an accountant on the true cost vs benefit before committing to a chattel mortgage.