What is a chattel mortgage?

A chattel mortgage is the most common commercial asset finance structure in Australia, and it's the one we arrange. Your business owns the equipment from day one, and the financier holds a charge (mortgage) over it as security. Because you own the asset, you can generally claim GST input tax credits on the purchase and depreciation over time — always confirm the tax treatment with your accountant. We don't do hire purchase or finance lease; for the vast majority of businesses, a chattel mortgage is the cleaner fit.

How much can I finance, and what affects it?

Use the calculator on this page to work it out from a monthly repayment you're comfortable with. As a guide, established businesses (2+ years ABN, GST registered, director owns property) can often access six-figure low-doc finance without financials. The amount comes down to the asset, your trading history, and the structure you choose — a balloon lets you finance more for the same monthly repayment.

Do I have to provide financials and bank statements?

Often, no. If your ABN has been active for 2+ years, you're GST registered and a director owns property, low-doc finance frequently needs no tax returns, BAS or bank statements. Newer businesses or larger amounts may need more, and sometimes a full-doc submission actually gets you a better rate — we'll tell you which path is worth it for your situation.

What happens at the end of the term if I have a balloon?

When the term ends, the balloon (residual) falls due. You can refinance it into a new facility, pay it out, or — if you're upgrading — roll into finance for the next asset. Many businesses time the end of a five-year term to refinance the balloon or buy newer equipment. We'll flag the options well before it lands.

Do early payout or termination fees matter?

They can — most lenders charge meaningful early-exit fees, so it's worth understanding them upfront rather than the headline rate. That said, because you're not usually planning to sell the asset, paying out early often isn't the concern people assume it is. We'll explain the exit terms before you commit.

Specialist equipment finance · since 2004

Equipment finance, structured to keep cash in your business.

We compare a panel of commercial lenders, then structure the deal around your cash flow — with the right balloon and term — so your repayments work as hard as you do.

✦ Model Mortgages Pty Ltd · Australian Credit Licence 387460

Australian prime-mover truck and excavator on a work site at dusk in warm light — equipment finance Australia

2004

Lending since

6-figure

Low-doc, no financials*

~30%

Smart balloon, lower repayments

24–48h

Typical approval

What we do

A good rate is the start. The right structure is what saves you.

We arrange commercial equipment and asset finance for Australian businesses — trucks, excavators, utes, machinery, vehicles and almost anything an ABN needs to earn. We're brokers: we know lender policy, we match your situation to the funder most likely to say yes, and we explain the deal in plain English before you sign anything.

The rate is only the start. The right structure is what saves you.

Of course the rate matters, and we compare a panel of commercial lenders. But two deals at the same rate can cost you very differently depending on how they're structured: the size of the balloon, the term, and which lender you use. Get both right and you keep more cash in your business. Use the calculator to work backwards from a repayment that suits you, then we'll line up the structure and the lender to match.

The single biggest mistake: no balloon

A balloon (residual) is the lump sum left at the end of the term. Put one on, and your monthly repayments drop and more cash stays in the business — which is the whole point of financing instead of paying cash. Around 30% is a sensible balloon on most assets; new vehicles can go to 40%. The trade-off is a payment due at the end, which you refinance or pay out when the term lands. Most owners under-use the balloon because no one explained it to them.

If your ABN is 2+ years old and you own property, you may not need financials at all

A large share of business owners qualify for low-doc (sometimes called 'load-up') finance: an established ABN, registered for GST, with a director who owns property can often access finance without supplying tax returns, BAS or bank statements — frequently into six figures. It's faster and far less paperwork. It isn't a loophole; it's how a lot of commercial asset finance is written. We'll tell you honestly whether low-doc or a full-doc submission gets you the better outcome.

Already own equipment outright? You can pull cash back out of it

If your business owns an asset — an excavator, a truck, a vehicle — you can often raise capital against it: typically up to around 90% of its current market value, even years after you bought it. There's also sale-and-buyback within six months of purchase. It's a clean way to free up working capital from gear that's just sitting on the balance sheet. These are usually low-doc by nature.

Getting an EV or a new vehicle? Get pre-qualified first — then go shopping

Sort the finance before you walk into a dealership. A pre-approval typically holds for around 90 days, so you can negotiate on price as a cash-equivalent buyer, arrange a trade-in, and avoid being pushed onto dealer finance. Once you've found the vehicle, settlement is often same-day. With fuel costs where they are, EVs and hybrids are one of the fastest-growing categories we're financing right now.

New, used, private sale or auction — we can usually finance it

New assets from a dealer are the most straightforward, but we regularly finance used and auction equipment too, including older machines. Private sales need a quick inspection of the asset; dealer and auction purchases are simpler. If you're buying at auction, get pre-approved before you bid so you can move on the day.

Indicative calculator

Work it out backwards.

Start with a repayment that keeps cash in your business and see what it finances — then we'll line up the right rate to match. Try the “What can I finance?” mode.

Indicative estimate

Work it out backwards.

Start with a repayment that keeps cash in your business and see what it finances — then we’ll line up the right rate to match.

Repayment I’m comfortable with$1,500/mo

Term5 years

Balloon / residual30%

A balloon lowers your monthly repayment and keeps cash in the business. ~30% is common; new vehicles can go to 40%.

Indicative rate7.50% p.a.

Your rate depends on the asset, its age, your ABN and security. A guide, not a quote.

You could finance approximately

$94,330

at $1,500/mo ($346/wk)

Balloon due at end$28,299

Total of repayments$118,299

Est. cost of finance$23,969

Estimate only, excluding fees and charges. Not a quote, offer, or credit assistance. Actual repayments depend on the lender’s assessment.

What we finance

New, used, private sale or auction — almost anything an ABN earns with.

Trucks & transport

Prime movers, tippers, rigids and delivery trucks — new or older units, owner-driver to fleet.

Explore

Excavators & earthmoving

Diggers, loaders and attachments for civil and construction, with cash freed for the next job.

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Utes & work vehicles

4x4s, dual-cabs, trays and canopies — financed with the fit-out wrapped into one repayment.

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Machinery & plant

CNC, fabrication and processing plant — including custom-built machines that need a smarter structure.

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Cars, EVs & vehicles

Cars, EVs and work vehicles for business or private use — get pre-approved, then shop as a cash-equivalent buyer.

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Used & auction

Buying at auction or privately? Get pre-approved first so you can bid with confidence.

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How it works

Four steps — and we handle the lender side.

Tell us what you need

Your business, your ABN, and the asset — or just a repayment you're comfortable with.

We match the lender

We compare a panel of commercial lenders and explain the rate, structure and balloon in plain English.

Get pre-approved

Your approval typically holds ~90 days. Go shopping and negotiate as a cash-equivalent buyer.

We settle it

We finalise the paperwork and the lender pays the supplier — often same-day on a straightforward deal.

Your specialists

You deal directly with a specialist who knows equipment finance — not a call centre.

Virginia Graham Riches

Founding Partner

Former ANZ interest-rate dealer and a broker since 2004. Virginia leads our equipment and asset finance and is known for getting the structure — and the lender — right.

Phil Riches

CEO & Lead Broker

Two decades structuring finance for business owners. Phil works alongside Virginia on equipment and asset finance, including the complex deals other brokers pass on.

Equipment and asset finance is arranged by Equipment Financing Australia, a brand of Model Mortgages Pty Ltd (ACL 387460).

Prompt board

Prepare with AI before you call.

Copy a prompt into your AI assistant, fill in the brackets, and bring the result to your broker. They help you organise your thinking and your questions — general information only, not advice.

Chattel mortgage vs lease vs CHP

Understand the trade-offs between the common asset-finance structures.

Act as a plain-English explainer of Australian asset finance for a small business owner. I'm looking at financing a [$amount] [asset, e.g. tipper truck / excavator / CNC machine] for my [industry] business. My ABN has been registered for [years] and I'm [GST-registered / not GST-registered]. Explain in general terms how a chattel mortgage, a finance lease, and a commercial hire purchase typically differ for a purchase like this — ownership, who holds title, how a balloon/residual usually works, cash-flow profile, and the kinds of GST/depreciation questions each one raises. Lay it out as a simple comparison and finish with a short list of questions I should put to my broker and my accountant. Do not give tax or credit advice or recommend one option — keep it general and flag where I need professional advice.