Finty
BYD Financial Services

BYD Financial Services Chattel Mortgage

Chattel mortgageSecured

A commercial loan designed to help customers purchase a new or used asset for business use. The loan features a fixed interest rate and no deposit requirement.

Written byDavid Boyd
Interest rate a year, from
7.84%
Establishment fee
$595
Monthly fee
$13
Borrow
$5,000 to $250,000

Monthly repayment

$100,000 over 5 years

What it would cost

At the lowest published rate of 7.84%, including the monthly fee. The rate you are offered depends on your business, and the establishment fee is not included.

Monthly repayment
$2,033
Total repayments
$121,976
Interest and monthly fees
$21,976

Loan details

Rates

Interest rate (a year)
7.84%–22.60%
Rate type
Fixed
Security
Secured
Type of finance
Chattel mortgage

Limits and fees

Loan amount
$5,000 to $250,000
Loan term
2 years to 7 years
Establishment fee
$595
Monthly fee
$13

How it compares

Against the other secured business loans we compare. Typical means the middle half of them.

Cost of $20,000 over 5 years

$5,612

Interest and fees at its starting rate. Typical is $5,512.

Setup fee

$595

A typical setup fee is $590.

Monthly fee

$13

A typical monthly fee is $10.

Most you can borrow

$250,000

Typically you can borrow up to $200,000.

Longest term

7 years

5 years is the usual longest term.

Pros and cons

Pros

  • A fixed rate. Your repayments stay the same for the whole loan, which makes it easier to budget.
  • No early repayment fee listed. You can pay the loan off early, or refinance, without a penalty. Check the terms to be sure.

Cons

  • Your rate isn't known until you apply. It's set by your credit history and finances, anywhere from 7.84% to 22.60%, and only some people get the starting rate.
  • A $13 monthly fee. That adds $777 over 5 years, as well as the interest.
  • Secured against an asset. That usually keeps the rate down, but the lender can take the asset if you can't repay.

Similar loans

Business loans of the same kind from other lenders that start at a similar interest rate.