Turn Movables to Liquidity—The Chattel Mortgage Loans
In China, loans with collaterals account for over 80 % of total loan transactions, and are also the most active part with rapid growth. Among these loans, chattel mortgage is a new type with chattel, or movable goods such as receivable or inventories, as collaterals. The lender could seize the chattel in the event of default, and sell it to recover the losses from the loans. Chattel mortgage is specifically designed for the small and medium sized enterprises (SMEs) with low transaction volumes and fast circulations. Since it involves in many participants of financial market, such as commercial banks, small loan companies, logistics and warehousing companies, and SMEs, chattel mortgage has received increased attention in the past years.