A chattel mortgage is a type of fixed charge taken over identifiable and move-able assets such as plant and machinery. Chattels are defined as any property other than freehold land.
Chattel mortgages are normally only available if the customer is a corporate body and is based in England and Wales. Scotland and Channel Islands do not recognise chattel mortgages except for ships and boats or aircraft. Marine and Aircraft mortgages are recognised by statute and can be used throughout the UK and by non-corporate as well as corporate customers.
A chattel mortgage offers direct finance on the security of the asset, when the customer already owns the asset. All risks are with the funding company. Payments take into account residual value thus the user is not covering the whole cost of the vehicle.
Asset finance is sometimes supplied by way of loan secured by a charge on the asset. Usually this will happen where a customer requires finance to update an asset which he already owns or decides to finance the asset only after he has already paid the supplier for it, so hire purchase is no longer available.
Secured loans are also used to finance some specialised assets such as ships and aircraft. Unsecured loans will sometimes be used to finance assets with little or no security value to the finance company, such as computer software or furniture. This is suitable for private individuals or businesses.
Global Asset Finance can assist you in arranging your commercial mortgage Through a number of funders, competitive rates can be achieved for your business. Residential investment properties, and short term business loans can also be covered.
How can Global help you? Global has access to numerous source’s of venture capital and private equity in the UK and a large number of international investors, and is dedicated to promoting new business ideas and concepts for industry and entrepreneurs, investors.
Global has arrangements with financial organisations and private investors with funds available for investment.
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