Chattels Mortgage (Equipment Acquisition)

For businesses that are seeking to strengthen cash flow and improve liquidity then the security of a Chattel Mortgage can achieve these critical financial objectives. This is quite simply a business loan secured by title to equipment already owned or newly acquired. Capital repayments are charged monthly / quarterly and interest is charged periodically (quarterly / annually) on the outstanding capital. This form of finance is particularly effective where there is a complex range of machinery being funded. Normally funded on a variable rate basis with fixed monthly or quarterly capital repayments and interest charged separately on the capital outstanding on a daily or monthly basis. Chattel Mortgages can be a very flexible method of funding, with greater choices in time terms and are particularly suited to relatively high value transactions. Also they are easy to use for ‘sale and leaseback’ style transactions to release capital back into a business.

Specific Benefits

• Stand alone funding, normally self securing.
• Repayments can be flexibly managed.
• Interest reduces in line with capital.
• Straightforward documentation.

Benefits

• As with all finance options, the mortgage contract will give a known term and fixed payments, and capital is conserved for more profitable use elsewhere.
• Cash flow can be managed by tailoring the financial product to the customer requirements and the granting of specific finance preserves the customer borrowing ability by giving an additional line of credit.

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