🚛 Can You Use a Chattel Mortgage for Horse Float Finance?
Yes! A chattel mortgage is a popular business finance option that allows:
✅ Tax deductions on loan interest and depreciation
✅ Ownership of the asset from the start of the loan
✅ Lower interest rates compared to unsecured loans
✅ Flexible repayment structures
💡 Tip: Chattel mortgages are only available for business use—your horse float must be used for at least 50% commercial purposes.
🏦 How This Buyer Used a Chattel Mortgage to Reduce Tax
A 46-year-old equestrian transport business owner needed a new horse float and wanted to maximize tax deductions. They successfully used a chattel mortgage by:
| 🔑 Strategy | ✅ How It Helped |
|---|---|
| 📑 Financing under a chattel mortgage | Allowed them to claim GST and interest costs |
| 🚛 Structuring a balloon payment | Reduced monthly repayments and improved cash flow |
| 💰 Claiming GST upfront | Lowered taxable income at the end of the financial year |
| 📆 Choosing a 3-year loan term | Ensured fast ownership while maintaining deductions |
💡 Tip: Businesses registered for GST can claim the GST on the horse float purchase price as an upfront tax credit.
📋 How to Set Up a Chattel Mortgage for a Horse Float
Follow these steps to secure a chattel mortgage and reduce tax on your horse float loan:
| 🔑 Step | ✅ What to Do |
|---|---|
| 📑 Confirm Business Use | Must be at least 50% commercial for eligibility |
| 🚛 Register for GST | Allows you to claim GST credits on the loan |
| 💰 Choose a Balloon Payment | Lowers monthly repayments while retaining tax benefits |
| 📆 Select a Loan Term | Usually 1–5 years, depending on cash flow needs |
| 📉 Compare Lenders | Different lenders offer varying tax benefits and rates |
💡 Tip: Chattel mortgages allow higher tax deductions if structured correctly—consulting an accountant can help maximize benefits.
🏆 Best Loan Options for Chattel Mortgage Horse Float Finance
Chattel mortgages offer different structures based on loan term, interest rates, and business needs.
| 🔑 Loan Type | ✅ Best For | 📉 Interest Rate (Typical) |
|---|---|---|
| 🚛 Chattel Mortgage (With Balloon) | Businesses wanting low repayments with a final lump sum | 5–10% p.a.* |
| 💰 Chattel Mortgage (No Balloon) | Businesses wanting to pay off the loan in full | 5–12% p.a.* |
| 📆 Low-Doc Chattel Mortgage | Self-employed buyers with limited paperwork | 6–14% p.a.* |
| 📉 Business Equipment Loan | Alternative financing for commercial-use floats | 6–12% p.a.* |
💡 Tip: A chattel mortgage with a balloon payment can free up cash flow for business expenses while keeping repayments manageable.
(*Rates vary based on lender and credit profile.)
💳 Why a Finance Broker Can Help with a Chattel Mortgage
A finance broker can:
✅ Find lenders offering competitive chattel mortgage rates
✅ Help structure balloon payments for better cash flow
✅ Ensure you maximize tax benefits with the right loan setup
🔑 Final Thoughts
A chattel mortgage is a tax-effective way to finance a horse float for business use. By claiming GST upfront, structuring repayments with a balloon, and choosing the right loan term, you can reduce your tax burden and improve cash flow.
🚀 Need a tax-saving horse float loan? Get expert advice on chattel mortgages today!
DISCLAIMER
The information provided on this website is general in nature only and has been prepared without considering your financial needs, circumstances and objectives and should NOT be construed as financial, taxation or legal advice. For more information, get in touch with our experienced partner brokers today.
