A chattel mortgage from your bank is the traditional route to financing commercial equipment: you own the asset from day one while the bank holds security, and you repay over a term at an interest rate. For venues with good credit wanting ownership and potential tax benefits, it is a solid option. Here is our honest read.
With a chattel mortgage, you own the equipment from the outset while the bank takes security over it until the loan is repaid. You repay over an agreed term at an interest rate, and because you own the asset, there can be tax advantages such as depreciation and interest deductions, worth confirming with your accountant. It is the traditional, well understood way to finance commercial gear.
Because it is straightforward debt against an asset you own, the total cost is often lower than rental or rent to own models, particularly if you have good credit and secure a competitive rate. The trade off is less flexibility, you own and are responsible for the asset, and approval depends on your credit. For an established venue with good standing that wants ownership efficiently, it is frequently the cheapest path.
You own the equipment immediately while the bank holds security until repaid.
Ownership can bring depreciation and interest deductions, confirm with your accountant.
Straightforward debt against the asset is frequently cheaper than rental models.
With good credit, bank interest rates can be very competitive.
A chattel mortgage suits established venues with good credit that want to own their equipment efficiently and may benefit from the tax treatment, at a competitive rate. It is often the lowest total cost route to ownership. A newer venue without strong credit, or one that values the flexibility to upgrade and return, may be better served by a rental or rent to own model.
We rate suppliers independently. We do not earn a referral fee from Bank Chattel Mortgage. Here is the balanced picture, the good and the points to weigh up.
A bank chattel mortgage is priced as an interest rate on the financed amount, from around 7% per annum depending on credit and term, repaid over the loan period. The figures below describe the shape, always confirm current rates and terms with the lender.
These are indicative rates, not a formal quote, and your rate depends on credit and term. Tax benefits depend on your circumstances, confirm with your accountant. Getting you an honest comparison against rental and rent to own is exactly what we do, free.
Bank Chattel Mortgage is one option. Here is how it sits alongside the other equipment finance options we review, so you can weigh them side by side.
A chattel mortgage is often cheapest for ownership, but rental suits some venues better. We will compare the options honestly against your credit and cash flow. Free, no obligation, and we will be in touch within 48 hours.
