Chattel mortgage · New businesses under 12 months
Chattel mortgage for new businesses under 12 months
New businesses trading under 12 months have fewer lender options, but equipment finance secured by the asset and small unsecured loans from 6 months of trading are available on our panel.
How a chattel mortgage works for new businesses under 12 months
A chattel mortgage is equipment or vehicle finance where your business owns the asset from purchase and the lender holds a mortgage over it as security until the loan is repaid. It is the most common structure for business vehicles, machinery and plant in Australia. For new businesses under 12 months, the key is matching repayments to how money actually moves: Uneven early revenue while a customer base builds.
What new businesses under 12 months typically fund
- First vehicle or equipment
- Initial stock
- Working capital while invoices ramp up
Chattel mortgage for new businesses under 12 months: 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 new businesses under 12 months usually need | ABN and GST registration · All bank statements since trading started · Evidence of contracts or bookings |
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
Business loans for new businesses
Business loans for new businesses are typically limited to asset-backed equipment finance or small unsecured loans once 6 months of trading and consistent deposits are visible. Startups with no trading history are usually assessed on the director’s personal position.
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.
Questions from new businesses under 12 months
Am I eligible for an unsecured business loan?
We compare options for Australian businesses. Lenders look at factors such as trading time, turnover, cash flow, credit history and the amount you need. Tell us about your business and we will explain which options may fit. There is no single minimum that applies across every lender on our panel.