2 min read
Definition
A chattel mortgage finances a movable ("chattel") asset such as a vehicle or machine. Unlike hire purchase, the borrower owns the asset from day one and grants the lender security over it until the loan is repaid.
In plain terms
You own the kit straight away, which can help with tax and VAT timing, while the lender keeps a charge as protection until you have paid it off.
Why it matters for your company
Immediate ownership affects capital allowances and VAT recovery, so take advice on structure. Compare monthly cost against a lease with the asset finance calculator.
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