Chattel mortgage is a type of finance used for purchasing vehicles and equipment. Under a chattel mortgage, a financing and leasing company will provide the customer with funds in order to purchase the vehicle or equipment (the “chattel”), the customer will make regular repayments and takes ownership of the vehicle at the time of purchase. The financier retains title until final payment is made and takes a “mortgage” over the vehicle. Once the term of the loan is complete and any residual paid the financier removes the Charge, giving the customer clear title to the car.
Every growing business needs an official vehicle, be it a car that the executives can use to attend client meetings or a truck that can deliver goods and equipment. When deciding how much to allocate, you have to evaluate the necessity of a vehicle in relation to the nature of your business. Factors such as credit rating, funding and vehicle acquisition, maintenance, and disposal costs should also be taken into account. Then comes the question of whether to buy, lease, or rent.
Vehicles never cease to improve and evolve—the market always has something new to offer, whether it’s a new model, or the latest technology. Once you start thinking about purchasing new vehicles for your fleet, it’s a good idea to talk to a number of business vehicle finance providers to accurately assess your current position and create a more personalised funding solution.
When it comes to the latter, Zurich discourages SMEs from cutting corners, such as reducing their workforce, because doing so creates a work environment where mistakes and accidents are more likely to occur. Instead, SMEs should adopt more practical solutions to save money, such as choosing one of the many business vehicle finance services offered by companies such as Credit Group Australia. Vehicle leasing, in particular, is a sensible choice if SMEs wish to reduce their vehicle monthly payments, tax bills, and other costs associated with operating a small business fleet.
In addition, vehicle leasing gives SMEs fewer headaches since their contract options can include maintenance services for them, allowing employers to simply focus on making money. Even a standard car lease can provide SMEs great opportunities for growth.