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Fitout Finance · Chattel Mortgage

Fitout chattel mortgage

Fund fitout on chattel mortgage and own it from day one, with GST on the asset claimable upfront. Indicative rates From ~7.6% p.a. (prime borrower) — subject to credit.

Quick answer

Fitout finance structured as chattel mortgage means you own it from day one, with GST on the asset claimable upfront. Fitout finance funds the build-out cost of retail stores, hospitality venues (cafes, restaurants, bars), professional offices and clinics — including cabinetry, joinery, kitchen and bar equipment, refrigeration, lighting, flooring, signage, security and AV. Most NZ fitout finance is structured as hire purchase or chattel mortgage on the itemised supplier invoices.

Is chattel mortgage right for fitout?

A chattel mortgage gives day-one ownership and lets a GST-registered business claim the GST on the equipment upfront, while you depreciate it over its life.

About fitout finance

Fitout finance funds the build-out cost of retail stores, hospitality venues (cafes, restaurants, bars), professional offices and clinics — including cabinetry, joinery, kitchen and bar equipment, refrigeration, lighting, flooring, signage, security and AV. Most NZ fitout finance is structured as hire purchase or chattel mortgage on the itemised supplier invoices. Indicative rates from ~7.6% p.a. with terms typically 36–60 months matched to the lease term and useful life of the fitout.

Why chattel mortgage

  • ✓You own the asset from day one — it sits on your balance sheet immediately
  • ✓Claim full GST on the asset cost in the period of purchase (subject to GST basis)
  • ✓Claim depreciation and the interest portion of repayments
  • ✓Fixed rate, fixed payments — easy to budget
  • ✓Lender registers PPSR security; otherwise unencumbered by lender ownership

Trade-offs to weigh

  • –You bear depreciation risk over the term
  • –Sale before end-of-term requires paying out the loan first
  • –Asset and liability both on balance sheet — increases gearing optics

Fitout finance at a glance

Indicative rate
From ~7.6% p.a. (prime borrower) — subject to credit
Typical term
36–60 months (matched to lease and useful life)
Deposit / LVR
Up to 100% of itemised supplier invoices (established business)
Lenders
UDC Finance, Heartland Bank, Spinach

What you can fund

Retail shop fitouts — cabinetry, displays, lighting, POSCafe, restaurant and bar fitouts — kitchen, refrigeration, joineryOffice fitouts — workstations, partitions, meeting rooms, AVClinic and salon fitouts — chairs, cabinetry, treatment roomsSignage, branding and exterior fitoutSecurity, access control and CCTV

How chattel mortgage is treated

Ownership from day one You (business)
Who claims depreciation You
GST treatment Claim full GST on asset cost upfront (cash/invoice basis)
Typical term 24–60 months

See the full breakdown in the chattel mortgage guide, compare all four structures on the comparison page, or read more on fitout finance.

Rates, terms and LVR are indicative market ranges for guidance only — not a quote, not financial or tax advice, and subject to lender credit approval. Confirm tax and accounting treatment with your accountant.

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Frequently asked questions

Yes. Chattel Mortgage is a common way to fund fitout for New Zealand businesses — it means you own it from day one, with GST on the asset claimable upfront. A chattel mortgage is a finance structure where you (the business) take legal ownership of the asset on day one, and the lender registers a security interest over it on the Personal Property Securities Register (PPSR). You pay regular instalments over the agreed term, claim depreciation and the interest portion of each payment, and you can claim the full GST on the asset cost upfront in your next return. All applications are subject to lender credit approval.