Running a business means you need the right equipment ready to go. But buying outright can tie up cash that should be working in your business, not sitting in a depreciating asset.
A chattel mortgage is one of the most widely used and tax-effective ways for Australian businesses to finance vehicles and equipment. At Woodward Finance, we work with over 50 lenders across Australia to find the right chattel loan for your situation, whether you’re a sole trader buying your first work ute, a growing SME adding to your fleet, or a construction business upgrading heavy equipment.
A chattel mortgage (sometimes called chattel financing, a chattel loan, or simply a goods loan) is a type of secured business finance used to purchase a vehicle or piece of equipment. The word “chattel” simply refers to moveable personal property.
This is how it works:
A chattel mortgage is structured similarly to a traditional fixed-rate home loan, except the security is a vehicle or piece of equipment rather than real estate. You repay the loan in fixed monthly instalments over an agreed term, with the option to include a balloon (residual) payment at the end to reduce your monthly outgoings
Not all chattel finance is the same. Woodward Finance will help you choose the structure that suits your cash flow and business goals:
Fixed repayments over the full loan term with no balloon. You pay down the full purchase price plus interest. Best for businesses that want a clear title as quickly as possible and can comfortably service the full repayment.
A lump sum (the “balloon”) is deferred to the end of the loan term, which reduces your monthly repayments along the way. The balloon can be paid out, refinanced, or funded by trading in or selling the asset. This is popular with businesses that need to keep cash flow free for operations.
Available for qualifying borrowers who may not have two full years of financials. Approval is largely based on the strength of the asset and the ABN registration. Ideal for newer businesses or self-employed operators.
For established businesses with complete financial records. Full-doc applications often attract the most competitive rates on the market because they present lower risk to lenders.
Chattel finance can be applied to a wide range of business-use assets. If it’s a tangible, moveable item used in the course of business, there’s a good chance we can finance it.
Common uses include:
If you’re not sure whether your asset qualifies, speak to our team.
| Chattel Mortgage | Finance Lease | Hire Purchase | Unsecured Loan | |
| Ownership | Yours from day 1 | Lender owns until end of lease | Ownership usually transfers after final payment | No specific asset security |
| Best For | Businesses wanting asset ownership and structured repayments | Businesses wanting use of the asset without upfront ownership | Businesses wanting structured asset purchase over time | Working capital or non-asset funding |
| Key Consideration | Asset is used as loan security | End-of-term options need to be reviewed | Check ownership timing and tax/accounting treatment | Usually different pricing and limits |
For broader business finance options beyond asset purchases, our team can also help with cash flow, working capital and more.
Lenders assess chattel financing applications across three main areas: identity and entity, capacity to repay, and asset quality. Here’s what you’ll generally need:
Business & Entity Requirements
Financial Requirements
Asset Requirements
Credit
New businesses and self-employed operators with less conventional income structures are welcome. We know how to present your file to the right lenders.
Choosing the right finance structure matters not just for cash flow, but for tax.
We're not tied to one bank. We compare rates, terms and credit policies across a panel of over 50 lenders to find the deal that's right for you.
Pre-qualified applications often receive conditional approval within 24–48 hours. We know what lenders want to see, and we prepare your file properly the first time.
We'll tell you exactly where you stand, what your options are, and what to expect. You'll always know the rate, the fees and the total cost of your loan before you sign anything.
We understand how businesses like yours actually work. We understand irregular income, multiple entities, growth phases, and seasonal cash flow, and work with your situation, not against it.
We're headquartered in Sydney but work with businesses right across Australia. And if you want to talk to a real person, you can.
Getting a chattel mortgage through Woodward Finance is straightforward:
Whether you need a chattel mortgage for a single vehicle or you’re financing a fleet of equipment, Woodward Finance is ready to help. Get in touch today for an obligation-free conversation about your options.
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A chattel mortgage is a type of secured business finance used to purchase a vehicle or piece of equipment. The lender provides the funds, your business takes immediate ownership of the asset, and the lender registers a security interest over it until the loan is fully repaid. It’s one of the most common and tax-effective asset finance structures for Australian businesses.
Yes. Chattel finance is available for both new and used vehicles and equipment. Most lenders apply an age policy (commonly, the asset must be under 15–20 years old at the end of the loan term). Woodward Finance works with lenders that have flexible policies for older or specialist assets.
Absolutely. A chattel mortgage is widely used to finance machinery, manufacturing equipment, construction plant, agricultural equipment, healthcare equipment and much more. If it’s a tangible, moveable business asset, chattel finance is almost certainly an option.
Yes, many lenders will finance 100% of the asset’s purchase price for approved applicants, meaning no deposit is required. Whether you qualify for 100% finance depends on your business profile, credit history and the asset being purchased.
Yes. A balloon (or residual) payment is an optional lump sum deferred to the end of your loan term, which reduces your regular monthly repayments during the loan period. The balloon can be paid out in cash, refinanced into a new loan, or cleared by selling or trading in the asset. It’s a useful cash flow tool — just make sure the balloon amount is manageable when it falls due.
If your business is registered for GST, you can claim the GST component of the asset’s purchase price as an Input Tax Credit on your next BAS — upfront in full, rather than spread across the loan term. Car depreciation limits apply for passenger vehicles.
For most GST-registered Australian businesses that want to own their assets, a chattel mortgage is generally the better option. You get immediate ownership, you can claim the GST upfront, and you can depreciate the asset from day one. A finance lease may suit businesses that prefer off-balance-sheet treatment, want to upgrade assets regularly, or aren’t GST registered.
