Chattel Mortgage is a very popular form of business finance as it suits many businesses and many asset purchases such as motor vehicles, equipment and trucks. If you’re considering a Chattel Mortgage for a business purchase, using a Chattel Mortgage Calculator may assist with your planning.
A Chattel Mortgage Calculator is an online function which enables you to calculate an estimate of repayments quickly and easily. These tools are made readily available by banks, lenders and finance brokers on their websites and are free to use.
But…you need to be fully aware of the conditions associated with the result you are calculating and you should read the disclaimer.
Using a Chattel Mortgage Calculator
Chattel Mortgage calculators are follow a relatively standard online form format with fields where you enter your data.
- Total Loan Amount: in this field, you enter the amount you are looking to finance.
- Loan Term: this may have dropdowns to select from or you enter the number of years or months you would like to pay off the loan.
- Interest Rate: the lender providing the calculator will usually display a range of interest rates which they are offering for different loans. Enter the relevant business interest rate for the goods you are acquiring.
- Balloon: a Chattel Mortgage includes the option for a balloon – a percentage of the total loan amount or price of the goods which is deferred for payment in a lump sum at the end of the loan period. This may be entered as a percentage of the loan or a fixed amount depending on the calculator you are using.
- After checking you’ve filled all fields, you’re ready to see the result.
- Click the CALCULATE icon and instantly an amount representing the monthly repayment for the values entered will be displayed.
- To increase or decrease the repayment figure, vary the loan amount, loan term or balloon.
This can be useful when planning acquisitions, but the repayment should not be taken as 100% guaranteed or as any indication of a quote or that your Chattel Mortgage application is approved.
- The calculator is a general device and does not have the functionality to allow for the fees that individual lenders may charge. These will be additional.
- Individual loan applications may attract a higher or lower interest rate than the one advertised which may mean your repayments may be higher or lower.
Used as intended, a Chattel Mortgage Calculator can be a useful tool in planning acquisitions. You can easily compare prices, see how optional extras may affect your repayments and decide if you will pay a deposit to reduce the overall total loan amount.
Most calculators are mobile friendly so you can use it on your smart phone even while you’re on-site negotiating with a seller.