Equipment loan

An equipment loan (also known as a chattel mortgage or bill of sale) is a loan agreement where you borrow funds to acquire an asset. You provide security for the loan by way of a mortgage to the Bank over the asset financed.

Features

• May be used to finance most equipment that generates income
• Minimum finance amount of $10,000 and no maximum
• Loan can be structured with or without balloons, and with payments in advance or arrears
• Interest rate and repayments are fixed for the term of the loan

Business benefits

• You are generally not required to provide a deposit
• Repayments may be tailored to suit your cashflow
• You don’t pay GST on the loan or the repayments
• You retain ownership of the asset throughout the term of the loan
• The interest component of the payments and the depreciation on the asset may be tax deductible, provided you use the equipment to generate assessable income

• Important information about advice
  As this advice has been prepared without considering your objectives, financial situation or needs, you should, before acting on the advice, consider its appropriateness to your circumstances. Applications are subject to the Bank’s normal credit approval. Fees and charges are payable.