Chattel mortgage · Refinancing business debt
Chattel mortgage for Refinancing business debt
Business debt refinancing is replacing an existing facility with a new one to lower the rate, extend the term, release equity or consolidate several debts into a single repayment.
How a chattel mortgage works for Refinancing business debt
Equipment and vehicle facilities are routinely refinanced, either to lower the rate as your credit position improves or to release equity from an asset that is worth more than the balance owing. A truck bought three years ago on a short term at a high rate is a common candidate. Check the payout figure carefully — some contracts include remaining term charges — and note that refinancing an asset resets the term, so a machine may end up financed beyond its useful working life.
The cash-flow pattern we plan around
Existing commitments consuming more cash flow than the current trading position warrants, often because facilities were taken when the business was smaller or its credit position weaker.
What refinancing business debt typically fund
- Lowering the rate on existing business debt
- Extending the term to reduce weekly or monthly repayments
- Consolidating multiple facilities into one
- Releasing equity from owned equipment or property
Chattel mortgage for Refinancing business debt: 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 refinancing business debt usually need | Current loan contracts and payout figures for each facility · 6–12 months of bank statements and latest financials · Details and condition of any asset or property offered as security |
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 debt refinance
A business debt refinance is a new facility that pays out one or more existing loans, changing the rate, term, structure or lender, and assessed on whether the total cost improves rather than the repayment alone.
Payout figure
A payout figure is the amount required to close an existing facility on a given date, including any remaining balance, break costs and fees, and it is frequently higher than the balance shown on a statement.
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.