What Is a Commercial Goods Loan?
A commercial goods loan is a business finance product where a lender provides funds to purchase a moveable asset (equipment, vehicle, machinery), and the borrower takes ownership from day one. The lender holds a charge over the asset until the loan is repaid.
This is exactly the same structure that the finance industry has traditionally called a chattel mortgage. Major Australian banks — including CBA, Westpac, NAB, and ANZ — have rebranded the product to make it more accessible.
Same Product, Different Name
Whether your bank calls it a "commercial goods loan", "business loan — goods", "goods loan", or "chattel mortgage", the structure is identical. The ownership, GST treatment, interest deductions, depreciation, and balloon payment options are all the same. Our calculator and guides use the traditional term "chattel mortgage" — but everything applies equally to commercial goods loans.
Why Did Banks Rename Chattel Mortgage?
The term "chattel mortgage" is a legal term dating back centuries. "Chattel" means moveable property, and "mortgage" refers to the security interest held by the lender. While accurate, banks found that many business borrowers were confused by the terminology — especially the word "mortgage", which most associate with property.
The rebrand to "commercial goods loan" makes the product more intuitive:
- Commercial — it's for business use
- Goods — it finances moveable assets (not property)
- Loan — you borrow money and repay it, with ownership from the start
Despite the name change, the legal structure, PPSR registration, tax treatment, and lender documentation remain the same.
Calculate Your Repayments
Enter your asset price, term, and rate — see weekly/monthly payments and Year 1 tax deductions.
Open Calculator →How a Commercial Goods Loan Works
- Choose your asset — new or used truck, ute, equipment, or machinery
- Apply for finance — through your bank, a specialist lender, or a finance broker
- Lender pays the seller — the full purchase price (minus any deposit)
- You own the asset immediately — registered in your name from settlement
- Make regular repayments — fixed weekly or monthly payments over the loan term (typically 2–7 years)
- Optional balloon payment — a lump sum at the end to reduce your regular payments
- Charge is removed — once the loan is fully repaid, the lender's interest is discharged
Tax Benefits
Commercial goods loans (chattel mortgages) offer three key tax advantages for Australian businesses:
1. GST Input Credit (Upfront)
If you're registered for GST, claim the full GST on the asset's purchase price in your next BAS. Example: a $110,000 truck (inc. GST) gives you a $10,000 GST credit — cash back within weeks.
2. Interest Deductions
All interest charged on the loan is tax-deductible as a business expense, reducing your taxable income each year.
3. Depreciation
As the legal owner, you depreciate the asset over its effective life (as set by the ATO). When the instant asset write-off is available, eligible assets can be fully deducted in Year 1.
Tax deductions depend on your individual circumstances, business-use percentage, and current ATO rules. Always consult a qualified tax professional.
Commercial Goods Loan vs Other Structures
| Feature | Commercial Goods Loan (Chattel Mortgage) |
Finance Lease | Operating Lease |
|---|---|---|---|
| Ownership | You — from day 1 | Lender (you at end) | Lender |
| GST | Claimed upfront | Claimed on each payment | Claimed on each payment |
| On Balance Sheet | Yes | Yes (AASB 16) | Depends on term |
| Depreciation | You claim | You claim (AASB 16) | Lessor claims |
| Interest Deductions | Yes | Yes | N/A (rental deduction) |
| End of Term | Own outright | Pay residual or return | Return asset |
| Instant Asset Write-Off | Eligible | Not applicable | Not applicable |