Chattel mortgage

In Australia, chattel mortgages are commonly used by companies, partnerships and sole traders to fund the purchase of cars, commercial vehicles and other business equipment.

Under Australian Taxation Office rules, businesses that account for GST on a cash basis are entitled to claim an Input Tax Credit for all of the GST contained in the purchase price of the chattel on their next Business Activity Statement.

Chattel mortgages in England and Wales are seen as a form of security interest (or "collateral") for lenders in certain financing scenarios.

Companies and other corporate entities may also give chattel mortgages over any tangible, movable property as security for a debt obligation.

[2] These early laws differed from other early laws in that filings and witnesses were required to enforce the security interest to prevent the debtor from fraudulently using the pledged collateral as a security interest in another loan.