Own the asset from day one, with the lender holding security over it.
- Settlement within 2 business days is possible through some lenders on a complete file
- $20K to $2M for vehicles, plant and equipment
- GST-registered businesses, sole traders, companies and trusts buying an asset for the business
- Utes, trucks, trailers, machinery, practice and kitchen equipment, new or used
- Full-doc (tax returns), low-doc or alt-doc (BAS, bank statements or an accountant's letter instead) and no-doc options from 90+ lenders
You have a quote for a vehicle or a piece of equipment, and the finance line says "chattel mortgage". It is a common business finance structure, and the name is the only unusual part. With a chattel mortgage, the business buys the asset and owns it from the day of purchase. The lender pays the supplier and takes a mortgage over that asset, which is the "chattel", until the loan is repaid. That ownership is what separates it from a lease or hire purchase, and it shapes how GST is claimed. Joseph Farhat and his team can explain the quote you have in front of you, compare it with what other lenders would offer, and arrange the finance once you and your accountant are happy with the structure.
Who we can help access finance
- Business owners holding a dealer or supplier quote that names a chattel mortgage, who want to know what they are signing.
- GST-registered contractors buying an excavator, skid steer or tipper for a contract that starts soon.
- Transport operators adding a prime mover or trailer and comparing the supplier's finance with the wider market.
- Medical, dental and allied health practices buying a chair, imaging unit or treatment equipment outright.
- Cafes and restaurants buying a coffee machine, refrigeration or a cooking line.
- Businesses offered a lease by a supplier who would rather own the asset from the start.
- Owners approaching the end of an existing chattel mortgage with a balloon, a lump sum left owing at the end, to pay or refinance.
How Chattel Mortgage Finance Works
The lender advances the purchase price, or most of it, and pays the supplier directly. The asset is bought in the name of the business, so the business is the owner from that day. The lender registers its security interest over the asset on the Personal Property Securities Register (PPSR), the national register of security over goods. Repayments are usually fixed over an agreed term, and a balloon can be set for the end. When the last payment is made, the lender releases its security and the asset is held free of the loan.
GST works differently from a lease. According to the ATO, a buyer under a chattel mortgage can claim the entire GST credit on the purchase in one go. Businesses that account for GST on an accruals basis claim it in the period of the tax invoice or the first payment. Those on a cash basis claim it when the loan pays the supplier. A valid tax invoice is needed either way. Your accountant confirms what the business can claim, as private use and other limits can reduce it. We are a finance broker, not an accountant or tax adviser.
Hire purchase is close but not the same. Under hire purchase, the financier owns the asset until the final instalment is paid. Since 1 July 2012, GST also applies to the interest charges on hire purchase, and the credit can still be claimed up front. Under a lease, the financier owns the asset and the business pays to use it, with the GST credit claimed on each payment rather than up front. Joseph Farhat and his team set these structures side by side, then place the chosen one with a lender from our panel of 90+ bank, non-bank, and specialist lenders.
What Lenders Assess for Chattel Mortgage Finance
The asset and its resale value
lenders look at the type of asset, its age and how easily it could be sold. Mainstream vehicles and equipment attract the widest choice.
Age at the end of the term
many lenders cap how old the asset can be when the final payment falls due, which limits the term on older items.
Trading history
the length of time the ABN has been active, GST registration, and the business's record of meeting existing repayments.
Documentation
full financials for larger amounts and sharper pricing, or BAS and bank statements under a low-doc policy up to each lender's ceiling.
Repayment capacity
whether the business income supports the new repayment alongside current commitments.
The balloon
lenders set a maximum balloon for each asset type and term, based on what the asset is expected to be worth at the end.
The supplier
dealer and manufacturer sales are simplest. Private and auction purchases need a PPSR search to confirm no other finance is registered against the asset.
The Chattel Mortgage Process: What to Expect
- Send Joseph Farhat and his team the quote, including any finance terms the supplier has offered, and tell us what paperwork the business has.
- We explain the structure in plain terms, and you check the GST and tax side with your accountant before going further.
- We take the file to the lenders on the panel most likely to approve this asset on your documents. Each credit enquiry is recorded on your file, so we start with the right lender.
- The approval shows the rate, term, balloon, fees and the total repayable. We go through each line with you before anything is signed.
- The lender pays the supplier, registers its interest on the PPSR, and the asset is delivered to the business. At the end of the term, the lender releases its security.
Indicative Finance Options
| Lender Type | Indicative Rate | Typical Loan Range | Loan Term | Deposit Required | Speed to Funding |
|---|---|---|---|---|---|
| Bank | From ~7% p.a. | $20K to $2M | 1 to 7 years | Often none on new assets | 1 to 3 weeks |
| Non-Bank Lenders | From ~9.5% p.a. | $20K to $1M | 1 to 7 years | None to 20% | Within 2 business days |
| Private Finance | Not typically used for chattel mortgages. Available for unique scenarios | ||||
Indicative figures only. Actual rates and terms depend on your project, financial position, property location, and lender assessment at the time of application. Rates are subject to change.
Why borrowers choose Settled With Joe for chattel mortgage finance
We represent you, not the lender
Joseph Farhat and his team work for the business buying the asset, from reading the first quote through to the release of security.
The structure explained before you sign
we set out chattel mortgage, hire purchase and lease in plain terms so the conversation with your accountant is quicker.
Supplier finance tested against the market
a chattel mortgage arranged at the point of sale is one offer, and we show you what other lenders would do with the same asset.
Balloon limits vary
lenders set different maximum balloons for the same asset and term, and we know which ones allow the structure you have in mind.
Asset appetite
some lenders prefer vehicles, others specialise in plant, medical or hospitality equipment, and the right match affects the rate and the term.
A panel of 90+ bank, non-bank, and specialist lenders
a business with full financials can go to a bank at a sharper rate, and a newer ABN or lighter paperwork still has choices.
Private finance for unique scenarios
where bank and non-bank lenders are not the right fit, we can introduce you to private finance options.
Usually no direct cost to you
as a broker we are typically paid by the lender on settlement.
An honest answer early
if the supplier needs a deposit or confirmation within days, contact us first and we will tell you what is realistic in that window.
Frequently asked questions
What is a chattel mortgage?
A chattel mortgage is a business loan used to buy a vehicle or piece of equipment, where the business owns the asset from purchase and the lender takes a mortgage over it as security. "Chattel" means movable property, as opposed to land. The lender registers its interest on the PPSR and releases it once the loan is repaid. Repayments are usually fixed, and a balloon can be added at the end.
What is the difference between a chattel mortgage and a lease?
Ownership and GST timing. With a chattel mortgage, the business owns the asset from day one and the lender holds security over it. With a lease, the financier owns the asset and the business pays to use it for the term. Under a chattel mortgage the GST credit on the purchase can be claimed up front; under a lease it is claimed on each payment. How each one is treated for income tax, and which suits the business, is a question for your accountant.
Who claims the GST?
The business that buys the asset, if it is registered for GST. Under a chattel mortgage the business is the buyer, so it can claim the entire GST credit on the purchase, in the period of the tax invoice or first payment on an accruals basis, or when the loan pays the supplier on a cash basis. The lender does not claim it. A tax invoice in the business's name is needed. Private use, and the limits that apply to some vehicles, can reduce the credit, so your accountant confirms the amount.
What happens at the end of the term?
If there is no balloon, the final regular repayment clears the loan. The lender then releases its security and removes its registration from the PPSR, and the asset belongs to the business free of the loan. If there is a balloon, it falls due with the last payment. It can be paid from cash, refinanced with a new loan, or covered by selling or trading in the asset. Joseph Farhat and his team can look at refinancing a balloon a few months before it is due.
Can I pay a chattel mortgage out early?
Usually, yes. Most chattel mortgages can be paid out before the end of the term, but many are written at a fixed rate, and the contract may set an early payout fee or a charge linked to the interest still to come. Ask the lender for a payout figure, which shows the exact amount on a given date. If a chattel mortgage is being arranged through us, we point out the early payout terms in the approval before you sign.
Is hire purchase the same as a chattel mortgage?
No, although the two are often confused. Under hire purchase, the financier owns the asset until the final instalment is paid, and only then does ownership pass to the business. Under a chattel mortgage, ownership sits with the business from the start. Since 1 July 2012, GST also applies to the interest on hire purchase, while the GST credit can still be claimed up front. Many lenders now offer chattel mortgage as their standard business structure. Your accountant can confirm which structure fits the business.
Can I get a chattel mortgage with low-doc or no-doc?
Yes, in many cases. Low-doc chattel mortgages approved on BAS, business bank statements and an active ABN are widely available, up to a ceiling that differs between lenders. No-doc options exist for some businesses and assets, usually with a shorter list of lenders and a deposit. Larger amounts generally need full financials, which tend to bring a lower rate. Joseph Farhat and his team will tell you which lenders accept the documents the business already has.
Do you work with borrowers with bad credit?
Yes, we do. A default, an old arrears listing or a judgment against the business or a director does not rule out a chattel mortgage, and it is not a conversation we will make uncomfortable. Many owners picked up a listing in a hard trading period that has since passed. Because the lender holds security over an asset it can sell, several lenders on our panel give real weight to the asset, the deposit and current trading, and price for the risk instead of declining. Tell us about it at the start, so the file goes to a lender with the right appetite rather than collecting enquiries. Joseph Farhat and his team will tell you honestly what is achievable before any application is made.
Why work with Settled With Joe to arrange your chattel mortgage?
Because you get one conversation instead of several applications. Most of the people we help with chattel mortgages are business owners, contractors, operators and practice owners with a supplier quote in hand and a date to meet: a machine needed for a contract, equipment to replace one that has failed, or a balloon falling due. Those situations are routine for us and there is no judgement in the discussion. What lenders weigh is the asset, its value over the term and the trading record behind the repayments. Our panel covers 90+ bank, non-bank, and specialist lenders, so a well-documented business can go to a bank at a sharper rate, and there are still options when paperwork is lighter or the timing is tight. We are based in Sydney and arrange chattel mortgages for businesses Australia-wide. Joseph Farhat and his team will give you a clear, early answer on what can be done.
Do you give financial advice?
No. We do not guide you on your finances, nor give financial advice. We focus on outcomes and solutions of presenting your unique scenario to the right lender so you can access funding in a timely and compliant manner.
Do you help with chattel mortgages outside Sydney?
Yes. Settled With Joe is based in Sydney and arranges chattel mortgages Australia-wide, covering both metro and regional areas. We work with clients in Sydney, Melbourne, Brisbane, Perth, Adelaide, and Canberra, as well as regional areas including Newcastle, Wollongong, Geelong, Gold Coast, Sunshine Coast, and Toowoomba. Regional businesses buying farm machinery, trucks or trade equipment are a regular part of this work. Joseph Farhat and his team will identify the lenders on the panel that fund your type of asset.
