To acquire machinery, vehicles and equipment, the chattel mortgage method is used. Under these terms, the financier will give you the funds in exchange of ownership of the asset at the time of purchasing.
The customer should make the regular payment while holding and using the asset. Soon after the final amount that includes residual/balloon payment, the customer gets the ownership to get the asset back. If the customer is not able to pay the residual payment, the residual/balloon payment can be refinanced into the new loan facility.
The chattel Mortgage is similar to the Commercial Hire Purchase or CHP while having differing taxation advantages and implications accordingly. With appropriate financial advise by a financial advisor or company accountant, you can determine the best option for your business.
What We Ensure:
The maximum loan term is for 7 years.
Up to 100% of the asset value can be financed
To produce the income, the Interest on payments and depreciation will be tax-deductible.
If input tax credits are registered for GST, it may be available under certain circumstances.
* Applications for credit are subject to the financier's normal credit assessment criteria. Fees or charges may apply. Full details of all product terms and conditions are available upon request. Any taxation information provided is only general in nature and does not constitute tax advice, nor is it necessarily applicable to your particular circumstances. Farm Machinery Finance strongly recommends that you consult with your accountant, financial advisor and lawyer to determine the most suitable lending option for your particular circumstances and whether any particular taxation laws, obligations or benefits may apply to you.
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