Chattel Mortgage Finance for Australian Businesses
Business vehicle, equipment, plant and machinery finance with asset ownership from day one, flexible terms and access to 74+ lenders through Tigris Finance.
A chattel mortgage is a popular business asset finance structure that allows your business to take ownership of a vehicle, equipment, plant or machinery from day one, while the lender holds a registered security interest over the asset until the loan is repaid.
This type of finance is commonly used by Australian businesses, tradies, fleet operators, transport businesses, farmers, contractors and self-employed professionals who need to purchase income-producing assets without tying up working capital.
At Tigris Finance, we help businesses across Brisbane, Queensland and Australia compare chattel mortgage options across a panel of 74+ lenders, including major banks, second-tier lenders, specialist asset financiers and non-bank lenders.
Our approach is simple: secure the right rate, right structure and right loan term for your business goals, cash flow and asset use.
What is a chattel mortgage?
A chattel mortgage is a secured loan used to finance a business asset. The word "chattel" refers to the asset being purchased, such as a vehicle, truck, trailer, machinery or equipment. Your business owns the asset from the start of the loan, while the lender registers a mortgage over it as security.
Once the loan is fully repaid, the lender removes their security interest and your business retains full ownership of the asset.
Common assets financed with a chattel mortgage
Why businesses choose chattel mortgage finance
A chattel mortgage can be attractive for businesses that want fixed repayments, asset ownership, flexible loan terms and the option to structure a balloon payment to reduce regular repayment amounts.
Depending on your business structure and asset use, there may also be potential tax, GST and depreciation considerations. Tigris Finance can structure the finance solution, while your accountant should confirm the best tax treatment for your circumstances.
Chattel mortgage finance with Tigris Finance
Tigris Finance is a Brisbane finance brokerage founded by Wade Hogan. We broker chattel mortgage finance across a panel of 74+ Australian lenders, helping you compare options beyond your existing bank.
Process at a glance: provide the asset details and basic business information, receive fast lender options, choose the repayment structure and balloon that suits your cash flow, then we coordinate settlement directly with the vendor. Typical approvals can be completed within 24-72 hours depending on the lender, asset and documentation.
What you'll find on this page: what a chattel mortgage is, when it may be the right product, how repayments and balloon payments work, common business uses and answers to frequently asked questions.
Common uses for chattel mortgage
Business vehicles
Utes, vans, trucks, prime movers, fleet cars. The most common use of a chattel mortgage in Australia.
Plant & machinery
Earthmoving, construction plant, agricultural equipment, manufacturing kit. Anything depreciable used in the business.
Tools & equipment
Workshop equipment, tradesman kit, specialty tools above ~$10,000.
Fit-outs & shopfittings
Owned, depreciable fit-out where the structure matches the depreciation profile.
Marine & aviation
Workboats, charter vessels, light aircraft used commercially. Specialist lenders only.
Why choose a chattel mortgage
GST claimed upfront.
Because you own the asset from day one, you can claim the full GST on the purchase price in your next BAS, rather than spreading it across the lease payments.
Depreciation on the asset.
You claim depreciation on the asset over its effective life (or under instant asset write-off / temporary full expensing rules where applicable). Your accountant will model the best tax outcome.
Interest deductible.
Interest portion of the chattel mortgage repayment is tax deductible as a business expense.
Balloon (residual) option.
You can structure a balloon at end of term (typically 20-50% of asset value) to reduce monthly cashflow impact. Sensible if the asset still has resale value at term-end.
Fixed repayments.
Most chattel mortgages are fixed-rate, fixed-term, so cashflow planning is straightforward.
Chattel Mortgage FAQs
Is a chattel mortgage better than an equipment lease for tax?
Usually, for asset-heavy businesses where you want depreciation on the balance sheet and an upfront GST claim. Equipment leasing is better when you want operating-expense treatment, off-balance-sheet financing, or short-term use of fast-depreciating assets. Your accountant has the final word.
What's a balloon payment on a chattel mortgage?
A residual lump sum due at the end of the term, typically 20-50% of the original asset value. It lowers your monthly repayment by deferring a chunk of the principal. At term-end you either pay it out, sell the asset to clear it, or refinance the balloon onto a new term.
Can I claim instant asset write-off on a chattel-mortgaged asset?
Yes, where the asset and your business qualify under the relevant ATO instant asset write-off threshold (rules change year to year). Since you own the asset from day one under a chattel mortgage, write-off rules apply directly. Confirm with your accountant for the current threshold.
Does a chattel mortgage appear on my balance sheet?
Yes. The asset is your business's, the chattel mortgage is your liability. This is one of the main differences from a true operating lease, which can be off-balance-sheet under some accounting standards.
Can a sole trader use a chattel mortgage?
Yes, provided the asset is used in the business. Sole traders, partnerships, companies and trusts can all use chattel mortgage structures. Tax treatment varies, so your accountant should confirm.
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