A Chattel Mortgage loan is a simple yet effective finance option designed for business plant and equipment purchases.
Here are six rules to consider when arranging finance for your business that will ensure you retain full control over the loan process and save money in the process.
- with a chattel mortgage, the ownership of the goods stay with the borrower ... i.e. the assets must be owned by the client.
This is similar to a property mortgage loan. The borrower owns the property and the lender registers an interest in the property by having the mortgage loan registered in the title.
- with a hire purchase loan, the lender owns the asset/s until the borrower has repaid the loan with interest. The borrower has full use of the asset but does not own it. The borrower also has contractual obligations in relation to the maintenance, insurance, etc. of the asset.