Flexible Finance Solution for Business
If you are looking for an effective finance solution for your business, then you should consider Chattel Mortgage. It is a car financing used by many businesses in purchasing commercial vehicles, office or business equipment. Likewise, it is a business finance product that is beneficial for borrowers to obtain the ownership of the vehicle or equipment as soon as it is purchased even if it is not paid completely.
The good thing about this loan option is that it accommodates various businessmen and traders looking for loan option that caters vehicle financing. However, in order to qualify for this car financing option, the client should ensure that the vehicle will be used at least 50 percent for the business operation. Many businesses prefer this financing option among other types of loan due to several benefits it offers.Fixed Interest RatesOne of the benefits of getting Chattel Mortgage is the fixed interest rate.
This means that the interest rates are stable and do not change regardless of the economic situation. It also follows that the payment remains constant throughout the duration of the mortgage. In this sense, the borrower will not worry about changing the interest rates and other hidden charges. In this way, the borrower can avoid defaults in paying the loan as well as losing the property collateral.Property OwnershipThe good thing about getting Chattel Mortgage is that the property purchased is registered automatically to the borrower.
Likewise, even if the collateral is considered as the legal property of the lender, yet the borrower can still make use of it. In this way, the company will continue to use the property in the operation of their business making it productive. Thus, the income flow of the company will become stable and can avoid default in paying the loan.Payment FlexibilityWith Chattel Mortgages borrowers can take advantage with the flexibility of payments in two ways. In the first option, the borrower can place a down payment or deposit on the mortgage.
This option reduces a number of monthly payments in such a way that the borrower will not find difficulty in paying the loan. The second option of payment is the residual value or using the balloon strategy. In this option, the borrower will pay the loan at the end of finance term.Tax IncentivesThe borrower can enjoy tax incentives in getting Chattel Mortgage. The tax deductions for the borrower include the property’s value of depreciation and the interest rates.
However, the Service and Goods Tax are applied to the property purchased and not on the monthly payments. The tax incentives can help in reducing the tax debt of the borrower.Term Life AgreementThe monthly payments depend on the term life agreement agreed by the borrower and the lender. Likewise, the longer term life can be beneficial to the borrower.Indeed, with all the benefits that Chattel Mortgages offer to the borrower, we can say that this type financing works well with any kind of business venture.
Author Bio: Fincar provides car loan calculator, novated lease calculator, etc. These calculators will help you to get the cost for car finance. You can calculate the monthly payment of car financing.