Chattel mortgage · NDIS providers
Chattel mortgage for ndis providers
NDIS provider finance is lending to registered and unregistered disability service providers, funding modified vehicles, support worker wages ahead of claim payments, SDA and SIL property, and assistive equipment.
How a chattel mortgage works for ndis providers
For a GST-registered provider, a chattel mortgage over a vehicle means ownership from day one and, generally, a GST claim on the purchase price in the next BAS. Interest and depreciation are deductible to the extent of business use. Many NDIS supports are GST-free, which can complicate input tax credit entitlements depending on your structure and registration — this is genuinely a case where your accountant should confirm the treatment before you settle rather than after.
The cash-flow pattern we plan around
Fortnightly SCHADS award wages with penalty rates against NDIS claims paid after service delivery, with plan-managed and self-managed participants adding further delay.
What ndis providers typically fund
- Wheelchair-accessible and modified vehicles
- Support worker wages ahead of claim payments
- SIL housing and SDA property
- Assistive technology and equipment
- Rostering, compliance and client management systems
Chattel mortgage for ndis providers: 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 ndis providers usually need | ABN and NDIS registration or provider details · 6–12 months of bank statements showing claim receipts · Vehicle and modification quotes, or property contract |
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
NDIS provider finance
NDIS provider finance is lending to disability service providers, assessed on NDIS claim history and participant numbers, and used for vehicles, equipment, property and the working capital between service delivery and payment.
Claim cycle gap
The claim cycle gap is the period between paying support workers for delivered services and receiving the corresponding NDIS payment, which widens where participants are plan-managed or self-managed.
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 ndis providers
How do NDIS providers fund wages before claims are paid?
Invoice finance against NDIS claims and plan-manager invoices, or a line of credit, covers fortnightly SCHADS wages while claims are processed and plan-managed participants pay, and the facility grows with participant numbers. Because the NDIS is government-funded, lenders price these facilities well for registered providers.
Can wheelchair-accessible and modified vehicles be financed?
Yes. Vans and buses with wheelchair lifts, ramps and restraints are financed as business vehicles with the modification included when quoted with the vehicle, over terms of up to seven years. Established providers are usually approved on low documentation.
Can I finance SDA or SIL property?
Yes. Specialist disability accommodation and supported independent living properties are financed with commercial property and construction loans against the enrolled dwelling’s NDIS income, with lenders looking at SDA enrolment, participant demand and the provider’s experience. It is a specialist area and a broker with NDIS experience matters.
What do lenders look for in an NDIS provider?
Registration or evidence of participant agreements, consistent claim income in the bank statements, wage costs and staffing, tax up to date and a clean credit file. Established providers with steady claim income are often approved within a day or two on bank statements.