Chattel mortgage · Civil contractors
Chattel mortgage for civil contractors
Civil contractor finance is asset-heavy lending for earthmoving fleets, float trailers and support vehicles, combined with working capital that carries wages and fuel across long government and tier-one payment cycles.
How a chattel mortgage works for civil contractors
For a GST-registered civil business a chattel mortgage over a roller or grader means ownership from day one and a GST claim on the full purchase price in the BAS covering settlement. On a $250,000 machine that claim is real money at exactly the point cash is tightest. You also depreciate the asset and deduct the interest. The trade-off is that you carry the residual value risk, which is fair for plant you intend to run for a decade and less attractive for machines you cycle every three years.
The cash-flow pattern we plan around
Monthly progress claims to head contractors or councils, paid 30–45 days later, with heavy mobilisation costs incurred up front on every new site.
What civil contractors typically fund
- Excavators, rollers, graders and dozers
- Low loaders and plant trailers to move machines
- Site establishment and mobilisation costs
- Fuel and operator wages between claims
Chattel mortgage for civil contractors: the numbers
| Typical amounts | $10,000 – $2,000,000 |
|---|---|
| Term | 12–84 months |
| Indicative rates | 6.9% – 14.5% p.a. |
| Repayments | Monthly (weekly or fortnightly available) |
| Speed | 24–48 hours for low-doc up to $150k; longer for full-doc |
| Documents civil contractors usually need | ABN, GST registration and contractor prequalification details · 12 months of bank statements and latest financials · Machine quote, serial number and hours reading |
Rates shown are indicative ranges observed across our lender panel for the period stated. They are not an offer or quote. Your rate depends on your business, the lender, the amount, the term and the security offered. The lender makes the final credit decision.
Key terms
Civil plant finance
Civil plant finance is secured equipment lending for earthmoving and roadworks machinery such as excavators, rollers, graders and dozers, priced against the resale value of the machine and usually written over three to five years.
Mobilisation funding
Mobilisation funding is short-term working capital that covers the cost of establishing a civil site — floats, fuel, temporary works and early wages — before the first progress claim on that job is certified and paid.
What is a chattel mortgage?
A chattel mortgage is a business loan used to buy a movable asset (a chattel) such as a ute, truck, excavator or equipment. The business takes ownership immediately and the lender registers a security interest over the asset until it is paid off.
Chattel mortgage balloon payment
A balloon is a lump sum, typically 0–40% of the purchase price, paid at the end of the term. It lowers regular repayments but must be paid, refinanced or covered by selling the asset when the term ends.