Chattel mortgages are business loans that are made for the purpose of helping companies operate while getting started.

In a chattel mortgage, you as the customer buy goods directly from a supplier but the financier then has charge over the goods.

As you sell the goods you pay a certain percentage of the price to your financier until the advance has been repaid. The title of the goods always remains with you, the purchaser.

Chattel mortgages provide borrowers with advantages in certain areas including deposits, taxation and in the repayment structures.

There are no requirements for the placement of deposits and any advances in a chattel mortgage can be made on a no deposit basis.

Although you should always seek independent taxation advice, depending on your situation you may be able to claim interest paid and depreciation on the goods purchased. As for the repayment structures – they can designed to suit each individual need and have no set or strict guidelines.

Chattel mortgages are a great way for small businesses to get the leg up they sometimes need at the beginning.

By being able to buy goods in their name through an advance of funds from a financier, businesses can invest in their future and will have an incentive to make sure that their plans succeed.