An asset loan is a secured loan designed to finance the asset(s) specified in the agreement and is secured on it.
The borrower grants the lender first ranking security on the assets. This can be undertaken by way of a chattel mortgage or by way of registered legal change.
Insurance and maintenance of the asset
The borrower will usually be responsible for insurance maintenance.
Advantages for the borrower
- The borrower retains the title during the term of the loan
- 100% financing of the asset
- Predictable fixed payments
- Flexible payment structures
- The asset is recorded on the borrower’s balance sheet