Commercial Solar Chattel Mortgage
Commercial Solar Chattel Mortgage Finance Australia
A Chattel Mortgage is a commercial asset-finance structure that allows an eligible Australian business to finance approved solar equipment while owning the financed asset from settlement. The finance provider takes security over the equipment until the obligation is satisfied, with repayments, security and any payout terms set by the specific agreement.
How Does a Solar Chattel Mortgage Work?
A Chattel Mortgage is a commercial asset-finance structure that allows an eligible business to finance approved solar equipment while owning the financed asset from settlement. The financier takes security over the equipment until the finance obligation has been satisfied.
Who Owns the Solar Equipment?
The business generally owns the financed solar equipment from settlement, while the financier retains a security interest over the asset during the finance term.
Why Choose a Chattel Mortgage for Commercial Solar?
Businesses should obtain independent accounting and taxation advice regarding their individual circumstances.
- Ownership-focused structure
- Preserves cash rather than paying entire project upfront
- Predictable finance repayments
- Potentially suitable for businesses wanting the solar asset on their balance sheet, subject to accounting advice.