Chattel mortgage

Ownership from day one, with the lender holding security over the asset until it's paid off.

How it generally works

With a chattel mortgage, the business takes ownership of the equipment immediately — it sits on the balance sheet as an asset from settlement. The lender registers a security interest over the asset (commonly through the Personal Property Securities Register) rather than retaining ownership themselves. Once the loan is repaid in full, that security interest is released.

This structure is often considered where a business wants to claim ownership and depreciation on the asset straight away, rather than waiting until the end of a repayment term.

What tends to suit this structure

Equipment a business intends to keep for the long term, rather than upgrade regularly, is often financed this way. It's also a structure some businesses consider when the immediate balance-sheet treatment matters to them — for instance, where they want to show ownership of the asset rather than a leased right to use it.