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IT Equipment Finance · Chattel Mortgage

IT Equipment chattel mortgage

Fund it equipment 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

IT Equipment finance structured as chattel mortgage means you own it from day one, with GST on the asset claimable upfront. IT equipment finance funds hardware for NZ businesses — laptops, desktops, monitors, servers, networking, AV, point-of-sale, security cameras and similar. Because IT hardware refreshes fast, operating lease is more popular than hire purchase in IT than other asset categories — predictable cost, easy refresh, off the balance sheet pre-IFRS 16.

Is chattel mortgage right for it equipment?

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 it equipment finance

IT equipment finance funds hardware for NZ businesses — laptops, desktops, monitors, servers, networking, AV, point-of-sale, security cameras and similar. Because IT hardware refreshes fast, operating lease is more popular than hire purchase in IT than other asset categories — predictable cost, easy refresh, off the balance sheet pre-IFRS 16. Hire purchase and chattel mortgage are also used where the business plans to own and depreciate. Indicative rates from ~7.6% p.a. with terms typically 24–48 months matched to refresh cycles.

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

IT Equipment finance at a glance

Indicative rate
From ~7.6% p.a. (prime borrower) — subject to credit
Typical term
24–48 months (matched to refresh cycle)
Deposit / LVR
Up to 100% on new from a recognised supplier
Lenders
UDC Finance, BNZ Asset Finance, ANZ Asset Finance

What you can fund

Laptops, desktops and monitorsServers and storageNetworking (switches, firewalls, access points)AV, conference room and video systemsPoint-of-sale (POS) and kitchen display systemsSecurity cameras and access control

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 it equipment 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 it equipment 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.