Chattel mortgage and leasing are two popular asset financing options in Australia, primarily used by businesses to acquire vehicles, equipment, or other essential assets without needing to pay upfront. These financing structures provide different benefits and flexibility, depending on the business’s financial needs and asset management strategy.

A chattel mortgage is a type of loan where a business borrows money to purchase an asset, and the lender takes a mortgage over the asset as security. The business takes ownership of the asset from the outset, but the lender holds an interest in it until the loan is repaid. One key benefit of a chattel mortgage in Australia is the potential tax advantages, such as the ability to claim GST on the asset’s purchase price, as well as interest and depreciation deductions. This financing structure is particularly attractive to businesses looking to improve cash flow and retain ownership of assets over the long term.

Leasing, on the other hand, is a rental agreement where the financier retains ownership of the asset, and the business makes regular lease payments for its use over a fixed term. There are two main types of leasing in Australia: finance leasing and operating leasing. In a finance lease, the lessee typically has the option to purchase the asset at the end of the lease term, whereas in an operating lease, the asset is returned to the financier. Leasing is often preferred by businesses that want flexibility, particularly if they need to upgrade assets regularly without being burdened by ownership responsibilities.

Both chattel mortgage and leasing options provide tailored financial solutions for Australian businesses, offering flexibility in managing assets while optimising cash flow and tax benefits.

Freyr Wealth offers specialised financial guidance to businesses seeking chattel mortgage or leasing options for asset acquisition in Australia. With a deep understanding of the complexities and benefits of both financing structures, Freyr Wealth provides tailored solutions that help businesses make informed decisions about their asset investments. Whether a company is looking to purchase vehicles, machinery, or other essential equipment, Freyr Wealth ensures clients choose the right option to suit their cash flow, tax objectives, and long-term financial strategy.

For businesses considering a chattel mortgage, Freyr Wealth assists in structuring loans to maximise tax benefits, such as claiming interest, depreciation, and GST deductions on purchased assets. Their experienced team works closely with clients to assess repayment schedules, loan terms, and interest rates, ensuring the solution aligns with the company’s financial goals and operational needs.

When leasing is a better fit, Freyr Wealth helps businesses explore both finance and operating lease options. They guide clients through the decision-making process, explaining the benefits of flexibility, tax treatment, and asset management without the need for large capital outlays. Freyr Wealth also provides insight into whether purchasing the asset at the end of a finance lease or upgrading through an operating lease is the better long-term strategy.
From the initial consultation to navigating paperwork and liaising with financiers, Freyr Wealth ensures a smooth process, helping businesses access the most competitive rates and terms available. Their expertise enables clients to optimise asset financing, improve cash flow, and secure the tools they need for growth.