Commonwealth Bank Asset Finance: Complete Review & Comparison Guide

Commonwealth Bank asset finance provides equipment loans, chattel mortgages, hire purchase, and finance leases for Australian businesses. In 2025, CBA offers fast-track approvals for qualifying customers, with same-day decisions possible on equipment up to $500,000 for established businesses. Rates vary based on individual circumstances, loan amount, and asset type. CBA also provides green asset finance discounts of up to 1% p.a. for electric vehicles and energy-efficient equipment under their 2024 Green Vehicle and Equipment Finance program. Minimum loan amounts typically start from $10,000, with terms ranging from 1-7 years depending on the asset. While CBA offers strong solutions for established businesses, comparing multiple lenders often helps secure better overall terms.

Commonwealth Bank Asset Finance Overview

As Australia’s largest bank, Commonwealth Bank provides comprehensive asset finance solutions for businesses of all sizes. According to CBA’s internal reporting data from 2024, the bank’s asset finance division saw significant growth, with CBA reporting a 22% increase in equipment and vehicle lending from July 2023 to March 2024 compared to the previous year.

CBA’s asset finance offering stands out for its streamlined digital processes, extensive product range, and commitment to supporting businesses through the energy transition with specialised green finance options. However, being a major bank also means more rigid credit criteria and processes compared to specialist lenders.

Recent Developments (2025)

• Streamlined Processing: CBA introduced fast-track approvals allowing qualifying small business customers to apply for car and equipment finance up to $500,000 with minimal additional documentation.
• Same-Day Service: Eligible customers may receive same-day approvals on equipment including yellow goods, cars, vans, and light trucks, with digital documentation available the same day for assets up to $1 million.
• Green Finance Leadership: CBA offers dedicated discounts for businesses investing in electric vehicles and energy-efficient equipment, supporting sustainability goals while reducing operating costs.
• Market Position: CBA reported more than threefold growth in SME electric vehicle financing and more than threefold increase across all business EV lending from July 2023 to March 2024, demonstrating strong market momentum in green asset finance.

For a comprehensive overview of asset finance options beyond CBA, see our asset finance Australia guide.

CBA Asset Finance Products

Commonwealth Bank offers four main asset finance structures, each designed for different business needs.

Equipment Loan (Chattel Mortgage)

The most popular option for established businesses wanting ownership from day one.

• How it works: You own the equipment immediately after purchase. CBA provides the funds, and the asset serves as security for the loan. You make regular repayments including principal and interest.
• Tax benefits: Subject to your individual circumstances, you may claim depreciation deductions, interest deductions, and GST input tax credits upfront if registered for GST. Always consult your accountant.
• Best for: Businesses wanting to maximise tax benefits and own assets long-term.
• Typical terms: 1-7 years depending on asset type and useful life.

Learn more about chattel mortgage structures.

Hire Purchase

Provides immediate use of equipment while you pay it off, with ownership transferring after the final payment.

• How it works: CBA purchases the asset and you hire it while making regular payments. After the last payment, ownership transfers to you automatically.
• Tax benefits: You may claim depreciation and the interest portion of repayments, subject to your tax circumstances.
• Best for: Businesses wanting eventual ownership with a clear payment path.
• Typical terms: 2-7 years.

Finance Lease

Rent equipment from CBA with flexibility to return, upgrade, or purchase at the end of the lease.

• How it works: CBA owns the equipment and leases it to you for a fixed term. At the end, you can return it, refinance to buy it, or upgrade to newer equipment.
• Tax benefits: Lease payments may be fully tax-deductible as operating expenses, subject to your circumstances. CBA claims the depreciation as the owner.
• Best for: Businesses wanting to keep equipment current or prefer predictable operating expenses.
• Typical terms: 2-5 years.

Novated Lease

A tax-effective way for employees to finance personal vehicles through salary packaging arrangements.

• How it works: Three-way agreement between employer, employee, and CBA. Lease payments come from pre-tax salary, potentially reducing taxable income.
• Best for: Businesses offering employee benefits and individuals wanting tax-effective vehicle financing.

For equipment finance options across multiple lenders, explore our equipment finance guide.

Green Vehicle & Equipment Finance

According to CBA’s 2024 Green Vehicle and Equipment Finance guidelines, the bank offers discounted rates for businesses investing in environmentally friendly equipment—a genuine point of differentiation from many competitors.

Electric & Hydrogen Vehicles

• Discount: Up to 1% p.a. off standard rates for qualifying vehicles under $250,000 (as per CBA’s Green Vehicle and Equipment Finance program)
• Eligible vehicles:
  • Electric or hydrogen-powered cars
  • Electric trucks and vans
  • Electric or hydrogen buses
  • New and used qualifying vehicles
• Market uptake: CBA reported more than threefold growth in SME electric vehicle financing and more than threefold increase across all business lending for EVs from July 2023 to March 2024, indicating strong demand for these discounted products.

Energy-Efficient Equipment

• Discount: Up to 0.5% p.a. off standard rates for qualifying equipment under $250,000 (as per CBA’s 2024 Green Vehicle and Equipment Finance guidelines)
• Eligible equipment:
  • Electric or hydrogen-powered machinery
  • Solar panels and systems
  • Wind and hydro-powered equipment
  • EV charging and battery storage equipment

Important: Green finance discounts must be requested prior to funding and are not automatically applied. Discounts cannot be combined with other rate reductions. Discounts for assets over $250,000 are available by negotiation. You must specifically request these discounts during the application process.

For construction businesses considering equipment upgrades, see our construction equipment finance guide.

Eligibility & Application Requirements

Who Can Apply

CBA asset finance is available to approved business customers for business purposes only, including:

• Sole traders with ABN
• Partnerships
• Companies (Pty Ltd)
• Trusts
• Not-for-profit organisations

General Eligibility Criteria

While specific requirements vary by loan amount, asset type, and industry, CBA typically considers:

• Trading history (usually minimum 12 months, though exceptions may apply)
• Business and personal credit history
• Serviceability and cash flow capacity
• Asset suitability and value
• Current debt levels

Reality check: CBA tends to be more conservative than specialist lenders. Newer businesses (under 12 months) or those with credit impairments often find better options with alternative lenders. Eligibility criteria may vary by industry.

Fast-Track Eligibility (2025)

Based on CBA’s 2024-2025 lending updates:

• For loans up to $500,000:
  • Qualifying small business customers
  • Minimal additional documentation required
  • Same-day approval possible
• For digital documentation (up to $1 million):
  • Qualifying business customers
  • Same-day documentation after approval
  • Digital signing available
• Application-only process (up to $350,000):
  • Businesses with 3+ years trading history
  • Simplified application process
  • Mobile device signing available

Note: “Qualifying” is the key word here—these streamlined processes are only available to CBA’s strongest business customers with established banking relationships.

Credit Assessment

All applications are subject to CBA’s eligibility and suitability criteria and normal credit approval processes. The bank assesses:

• Ability to service repayments
• Credit history and existing commitments
• Asset type and supplier credibility
• Business financial position
• Purpose and business fit

For businesses exploring self-employed financing options, see our ABN loans guide.

CBA Asset Finance Features

Flexible Loan Structures

• Full asset cost financing: Finance up to 100% of the equipment purchase price, preserving cash for other business needs.
• Balloon payments: Option to structure a residual balloon payment at loan end, reducing monthly repayments (though increasing total interest paid).
• No equity required: The financed asset serves as security, freeing up property equity and credit lines for other purposes.
• Customisable terms: Tailor loan terms and repayment structures to match your business cash flow.

Digital Experience

• Online calculator: Work out monthly repayments for different finance structures before applying.
• Conditional approval online: Eligible CBA customers may receive conditional decisions online for qualifying applications.
• Digital documentation: Sign documents electronically using mobile devices for eligible transactions.
• Streamlined upgrades: Simplified Replacement Pathway for customers with good payment history upgrading existing financed equipment.

Business Support

• Dedicated business bankers: Access to local business banking specialists across Australia (though this can also slow down processes compared to direct online lenders).
• No monthly fees: Standard asset finance agreements include no ongoing monthly account fees as of 2025 (application and documentation fees apply).
• Transparent pricing structure: Rates based on loan amount and term, with no hidden charges (note: actual rates are not published publicly and require individual quoting).
• EV transition support: Assistance with fleet electrification and green equipment upgrades.

What Can You Finance

CBA finances a comprehensive range of business assets:

Vehicles & Transport

• Cars, utes, and vans
• Light and heavy commercial trucks
• Delivery vehicles
• Buses and coaches
• Electric and hybrid vehicles
• Fleet vehicles

Construction & Earthmoving

• Excavators and loaders
• Bobcats and skid steers
• Bulldozers and graders
• Concrete pumps and equipment
• Cranes and lifting equipment
• Dump trucks and tippers For excavator-specific financing information, see our excavator finance guide.

Manufacturing & Industrial

• Manufacturing lines and equipment
• Forklifts and scissor lifts
• Warehouse equipment
• Packing and cutting machines
• Moulding and forming equipment
• Industrial plant and machinery Industry growth note: According to CBA’s internal data, the bank reported a 24% increase in funding for industrial and manufacturing equipment from July 2023 to March 2024, with 42% growth in regional manufacturing funding.

Professional & Medical

• Medical and dental equipment
• IT systems and computers
• Office equipment and fitouts
• Professional tools and technology
• Diagnostic and imaging equipment

Agriculture

• Tractors and farm machinery
• Silos and storage equipment
• Irrigation systems
• Harvesting equipment
• Livestock handling equipment

Other Assets

• Hospitality equipment
• Retail fitouts and equipment
• Solar and renewable energy systems
• EV charging infrastructure
• Specialised industry equipment

Rates, Fees & Terms

Interest Rates

CBA asset finance rates vary based on multiple factors and are subject to individual assessment. Rates are influenced by:

• Loan amount and term
• Asset type and age
• Business credit strength and trading history
• Current market conditions
• Security provided Green asset discounts: Up to 1% p.a. reduction for eligible electric/hydrogen vehicles under $250,000, and up to 0.5% p.a. for other qualifying green equipment (as per CBA’s 2024 Green Vehicle and Equipment Finance guidelines).

Important: CBA’s rates aren’t always the most competitive in the market. As a major bank, they often sit in the mid-range. Specialist lenders and non-banks may offer better rates for the same equipment, particularly for established businesses with strong financials. Actual rates are not published publicly and require individual quoting. Rates are subject to change and green discounts must be requested. Discounts cannot be combined with other reductions.

Fees & Charges

• Application fee: Varies by loan type and amount; may be financed into the loan or paid upfront.
• Documentation fee: Depends on agreement type; can be included in financed amount.
• No monthly account fees: Standard asset finance agreements have no ongoing monthly charges as of 2025.
• Early repayment: Check current terms regarding early payout or additional repayment fees.

Loan Amounts

• Minimum: Generally $10,000 for asset finance (may vary by product)
• Maximum: Up to millions of dollars for large equipment and fleet purchases, subject to assessment
• Unsecured business loan option: Existing CBA customers may access $5,000-$100,000 unsecured for business purposes (separate product)

Loan Terms

• Standard terms: 1-7 years depending on asset type and useful life
• Vehicle finance: Typically 2-5 years
• Heavy equipment: Often 3-7 years
• IT and technology: Usually 2-4 years
• Custom terms: Available to match asset depreciation and business cash flow

For comparison across multiple lenders, use our comparison platform.

Pros & Cons of CBA Asset Finance

Advantages

• ✓ Major bank stability: Backed by Australia’s largest bank with extensive lending capacity
• ✓ Fast processing for existing customers: Same-day approvals possible for qualifying CBA business banking customers in 2025
• ✓ Green finance leadership: Market-leading discounts for electric vehicles and sustainable equipment (up to 1% p.a. under their 2024 Green Vehicle and Equipment Finance program)
• ✓ Digital capability: Online applications, calculators, and digital documentation for eligible customers
• ✓ Replacement pathway: Simplified upgrades for existing customers with good payment history
• ✓ No monthly fees: Standard agreements include no ongoing account charges as of 2025
• ✓ Full-service banking: Ability to manage all business banking and lending in one place

Disadvantages

• ✗ Big bank processes: More rigid credit criteria than specialist lenders, particularly for newer businesses
• ✗ Conservative approval: Strong preference for established businesses with 12+ months solid trading
• ✗ Mid-range pricing: Rates often aren’t the most competitive compared to specialist asset finance providers
• ✗ Relationship dependency: Best deals typically reserved for existing CBA business banking customers
• ✗ Slower for non-customers: Applications from businesses without existing CBA relationships may take longer
• ✗ Green discounts not automatic: Must specifically request environmental discounts—they aren’t applied automatically
• ✗ Limited flexibility: Less accommodating for complex situations or non-standard equipment compared to specialist lenders

CBA vs Alternative Lenders

When CBA Makes Sense

CBA asset finance often suits:

• Established businesses with 12+ months solid trading history
• Existing CBA business banking customers who value consolidated banking
• Businesses investing in electric vehicles or green equipment (to access discounts under their 2024 Green Vehicle and Equipment Finance program)
• Companies needing large equipment finance capacity
• Businesses prioritising major bank stability over absolute lowest rate
• Fleet operators transitioning to electric vehicles

When Alternative Lenders May Be Better

Consider specialist lenders or non-bank options if:

• You’re a newer business (under 12 months trading)
• You have complex credit situations or previous defaults
• You need highly specialised equipment finance expertise
• You prioritise absolute lowest rate over banking relationship
• You want more flexible approval criteria
• You’re financing non-standard or niche equipment
• You need faster approval without existing banking relationship

Reality check: Many businesses assume they should go with their existing bank for convenience. However, comparing multiple lenders—including specialists—may result in better rates and more suitable structures. The potential difference in overall cost can be significant over the loan term.

For broader asset finance lender comparison, see our asset finance guide.

Should You Choose CBA Asset Finance?

Commonwealth Bank asset finance offers solid solutions for established businesses, particularly those already banking with CBA or investing in green vehicles and equipment. The streamlined digital processes and same-day approvals for qualifying customers are genuine advantages.

However, CBA’s conservative credit criteria and mid-range pricing mean they’re not always the best option for every business. Newer businesses, those with credit impairments, or companies financing specialised equipment often find better terms with alternative lenders.

The Smart Approach

Rather than defaulting to your existing bank, compare multiple lenders including:

• Major banks (CBA, NAB, Westpac, ANZ)
• Specialist asset finance providers
• Non-bank lenders
• Equipment-specific financiers

This comparison process typically takes minutes with modern platforms and may result in better overall outcomes while ensuring you get the structure that best suits your business needs.

Compare CBA Asset Finance with Multiple Lenders

Want to see how CBA compares to other options?

While CBA offers strong asset finance solutions for established businesses, comparing multiple lenders helps ensure you’re getting the best rate and structure for your specific situation.

Loan Phone provides fast online comparison across 100+ lenders including major banks like CBA and specialist asset finance providers, with expert broker support available for complex equipment purchases.

• Fast Online Comparison — See personalised options from major banks and specialist lenders side-by-side
• Specialist Equipment Finance Expertise — Brokers who understand different asset types, industries, and lender appetites
• Flexible Structures — Chattel mortgage, lease, hire purchase, and loan options across all lenders
• Better Outcomes — Access to lenders you might not find directly, often with better rates than major banks
• Green Finance Assistance — Help accessing discounts across multiple lenders, not just CBA

Speak with specialists:

Related Resources

Last updated: October 7, 2025