A Chattel Mortgage Agreement can provide your business with an alternative method of funding for vehicle and plant & equipment acquisitions that is designed to optimise cash flow, while minimising the impact of GST.

The Chattel Mortgage enables you to purchase the goods you need and acquire immediate ownership of the asset so that you can get on with your day to day business, without significant impact on your working capital.

This product is available to QLD, NSW, Vic and ACT residents ONLY.

Key Features of the Chattel Mortgage: Vehicle/equipment is available for immediate use in the business with no capital outlay; use the Chattel mortgage to purchase assets being used to generate income in your business, with a minimum finance amount of $18,000. Enables you to spread the cost of acquisition over the useful life of the vehicle/equipment as it generates income; the minimum term is 12 months with a 60 month maximum term. You acquire immediate ownership of the asset. You retain all the equity in the vehicle/equipment. Depreciation and interest are usually tax deductible. No GST is payable on individual instalments; you claim a direct input tax credit (ITC) on the invoice price. Use the vehicle/equipment as security - in most cases freehold property can be left for other funding requirements. Added flexibility of including other equipment under the one contract is available if required. Fixed interest rate for the term of the contract, which enables you to avoid market interest rate increases and assists you with budgeting. You control the purchase process; you choose the supplier and negotiate the price independently; MCF then pays your supplier. Fixed interest rate for peace of mind

Options

• Conserve your cash resources - you can choose to finance 100% of the invoice price OR contribute a deposit in the form of cash or trade-in allowance to reduce your payments.
• You can structure the transaction so that the amount financed is fully or partially amortised via a balloon payment at the end of the contract term
• You can elect to pay the GST portion of the invoice price from working capital or fund it as part of the loan amount (the loan can be structured so that when the income tax credit is received, it is repaid off the loan to reduce the debt)
• The repayments can be tailored to suit business cashflow demands and seasonal or irregular income, making it easy to manage.
• Option to repay the loan early during the term of the contract (Prepayment Conditions apply).
• You can structure transactions with payments calculated in advance or in arrears
• Direct Debiting of payments is available; this will save you time.
• Minimum 12 months; Maximum 60 months

Fees

A one off administration fee will apply. The fee is payable at the same time as settlement. Fees may vary from State to State.

Other fees and government charges associated with the Chattel Mortgage will vary depending on which State you are in, the vendor of the goods being purchased the amount of the loan, and any Federal government charges. Contact MCF on 1800 670 236 for details.

Equipment Finance products are offered by Suncorp Metway Advances Corporation Pty Ltd ABN 89 100 845 127. The above information applies to approved applicants only and is subject to terms and conditions that are available on application or request

This does not constitute business, financial, legal or taxation (including GST) advice - you should seek independent advice as to how a chattel mortgage may impact on your business, financial, legal or taxation position

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