Chattel mortgage · Civil contractors
Chattel mortgage for civil contractors
Civil contractor finance is asset-heavy lending for earthmoving fleets, float trailers and support vehicles, combined with working capital that carries wages and fuel across long government and tier-one payment cycles.
How a chattel mortgage works for civil contractors
For a GST-registered civil business a chattel mortgage over a roller or grader means ownership from day one and a GST claim on the full purchase price in the BAS covering settlement. On a $250,000 machine that claim is real money at exactly the point cash is tightest. You also depreciate the asset and deduct the interest. The trade-off is that you carry the residual value risk, which is fair for plant you intend to run for a decade and less attractive for machines you cycle every three years.
The cash-flow pattern we plan around
Monthly progress claims to head contractors or councils, paid 30–45 days later, with heavy mobilisation costs incurred up front on every new site.
What civil contractors typically fund
- Excavators, rollers, graders and dozers
- Low loaders and plant trailers to move machines
- Site establishment and mobilisation costs
- Fuel and operator wages between claims
Chattel mortgage for civil contractors: the numbers
| Typical amounts | $10,000 – $2,000,000 |
|---|---|
| Term | 12–84 months |
| Indicative rates | 6.9% – 14.5% p.a. |
| Repayments | Monthly (weekly or fortnightly available) |
| Speed | 24–48 hours for low-doc up to $150k; longer for full-doc |
| Documents civil contractors usually need | ABN, GST registration and contractor prequalification details · 12 months of bank statements and latest financials · Machine quote, serial number and hours reading |
Rates are indicative, change without notice and depend on the lender, product, asset, term and your credit profile at the time of application. They are not an offer of finance. Comparison rates, where shown, are true only for the example given.
Key terms
Civil plant finance
Civil plant finance is secured equipment lending for earthmoving and roadworks machinery such as excavators, rollers, graders and dozers, priced against the resale value of the machine and usually written over three to five years.
Mobilisation funding
Mobilisation funding is short-term working capital that covers the cost of establishing a civil site — floats, fuel, temporary works and early wages — before the first progress claim on that job is certified and paid.
What is a chattel mortgage?
A chattel mortgage is a business loan used to buy a movable asset (a chattel) such as a ute, truck, excavator or equipment. The business takes ownership immediately and the lender registers a security interest over the asset until it is paid off.
Chattel mortgage balloon payment
A balloon is a lump sum, typically 0–40% of the purchase price, paid at the end of the term. It lowers regular repayments but must be paid, refinanced or covered by selling the asset when the term ends.
Questions from civil contractors
How do civil contractors finance a fleet of earthmoving plant?
Through a series of chattel mortgages or a master equipment facility that lets machines be added as contracts are won, with terms of three to seven years matched to each machine’s life and the contract it will service. A broker spreads the fleet across lenders so no single lender is over-exposed and fleet pricing applies. Float trailers and support vehicles go on the same program.
How is mobilisation funded on a new civil contract?
A line of credit or a short-term working capital loan covers wages, fuel, site establishment and floats until the first monthly claim is paid 30 to 45 days later, and invoice finance against certified claims keeps cash flowing for the life of the contract. Sale and leaseback of unencumbered plant is another way to raise mobilisation capital quickly.
Can I release cash from plant I already own?
Yes. A sale and leaseback or refinance secured on unencumbered machines can release 60 to 80 per cent of their valuation for working capital, a deposit on the next machine or to consolidate debt, with the plant staying on your sites. Lenders like late-model excavators, loaders, dozers and graders as security for this.
Do government and tier-one contracts help a civil contractor’s application?
Yes. Signed contracts or panel appointments with councils, state agencies and tier-one head contractors are strong evidence of income and often move an application from a deposit to no deposit or from full financials to a lighter assessment. Lenders like the predictability of government-funded civil work, so include the contracts with your application.