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Chattel Mortgage Eligibility
Chattel mortgages are generally available to eligible businesses purchasing vehicles or equipment primarily for business use. Approval depends on the borrower’s financial circumstances, the asset being financed and the lender’s eligibility criteria.
What Do Lenders Look For?
When assessing a chattel mortgage application, lenders typically consider:
- Business details: Your , business structure and trading history.
- Financial position: Business income, existing commitments and ability to meet repayments.
- Credit history: The credit history of the business and relevant individuals.
- Asset details: The type, value, age and intended use of the vehicle or equipment.
Do I need an ABN to apply?
Most chattel mortgage lenders require an active ABN. Some also require , depending on their lending policies and the type of finance requested.
Can a new business qualify?
Yes, although options may be more limited. Some lenders consider newer businesses, potentially requiring additional financial information, a deposit or other supporting evidence.
What documents will I need?
Requirements vary, but lenders may request identification, ABN details, an asset quotation, bank statements, tax returns or business financial statements. Eligible applicants may qualify for options.
Can I apply with a poor credit history?
Some lenders consider applicants with previous credit difficulties. Approval depends on the circumstances, repayment capacity and lender criteria. Additional conditions or higher borrowing costs may apply.
Can the vehicle also be used privately?
Some lenders permit mixed business and private use, provided their business-use requirements are met. Tax deductions and GST credits generally depend on the actual eligible business-use proportion.
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