At a glance: the minimum deposit for asset finance
Most Australian businesses can fund vehicles, equipment and machinery with a minimum deposit between 0–20%. Strong, established applicants buying standard new assets from dealers are often eligible for no-deposit approvals. Startups, older assets or files with credit challenges commonly see 10–40% requested.
- Common range: 0–20% for established businesses
- $0 deposit: possible on strong files and new/near-new assets
- Higher deposits: 10–40% for startups, older/unique assets, or weaker credit
How lenders decide deposit requirements
The “minimum deposit” is a risk and loan-to-value (LVR) question. Lenders look at the borrower profile, the asset, and the structure. If the overall risk sits within policy, a low or no deposit may be acceptable. If risk is higher, a deposit brings the LVR back into line.
- Borrower factors: time in business, affordability, credit history, ABN/GST status
- Asset factors: new vs used, age/hours, resale profile, dealer vs private sale
- Structure: term length, balloon/residual, any additional security or guarantees
Deposit sources can include cash, trade-in equity, or a supplier prepayment. Balloons/residuals can also help meet LVR targets without tying up as much cash upfront.
Typical deposit by situation
- Established business, new asset from a dealer: 0–10% (often $0 with strong affordability)
- Established business, used asset (standard age/condition): 5–20%
- Older/specialised machinery or high hours: 10–30%
- Startup or short trading history: 10–40% (lower with strong supporting docs/security)
- Private sale or offshore supplier: usually higher than a dealer purchase
- Low doc approvals: may require more deposit than full doc
For product-specific guidance, see deposits for a Chattel Mortgage, Finance Lease, Operating Lease, Equipment Finance, Vehicle Finance and Machinery Finance.
When $0 deposit is realistic
No-deposit approvals are most common when:
- The business is established (often 2+ years) and shows clear affordability
- The asset is new or near-new with strong resale (cars, utes, standard yellow goods, common equipment)
- The purchase is from a reputable dealer with a full tax invoice and asset details
- Bank statements/BAS/financials support the requested repayments
- The structure (term and balloon/residual) keeps LVR within policy
Explore detailed options on our No Deposit Asset Finance page.
What pushes the deposit higher
- Startup or short ABN history, or no GST registration
- Limited affordability on bank statements/BAS, recent losses, or high leverage
- Weaker credit scores, paid/unpaid defaults, or recent credit events
- Older or highly specialised assets, high hours/kilometres, poor resale profile
- Private sale purchases, limited supplier documentation, or offshore vendors
- Low doc submissions where full doc evidence would improve the file
How to reduce the deposit you need
- Provide strong supporting documents (bank statements, BAS, financials)
- Choose newer assets from reputable dealers where possible
- Offer a realistic balloon/residual to keep LVR within policy
- Use trade-in equity or additional security to strengthen the structure
- Add a guarantor/co-borrower if appropriate for your business
- Demonstrate clear work pipeline or contracts for revenue-generating assets
More on documentation: Asset Finance Requirements and the Approval Process.
Real-world deposit examples
- $80,000 ute for an established contractor (good bank statements): 0% deposit with a sensible balloon
- $220,000 excavator for a new entity with experienced directors: ~20% deposit to meet LVR policy
- $40,000 used forklift (older, high hours): 15–30% deposit depending on age/condition and buyer strength
Approval and documentation
Deposit questions and approval often move together. The clearer your affordability and asset details, the more likely you can minimise or remove a cash deposit.
- Core items: ABN/GST details, driver’s licence, dealer quote/tax invoice, asset specifications
- Affordability: 3–6 months business bank statements, recent BAS, or financials
- Startups: director CV, project pipeline or contracts, opening balance sheet, bank statements
- Low doc: stronger asset and trading profile may still get it done (often with some deposit)
Learn more about requirements, approval time and rates.
GST and tax notes (speak with your adviser)
GST and tax settings affect cash flow around settlement and may influence how much deposit you prefer to put in. Many businesses claim the GST credit on the purchase at the next BAS, which can offset upfront cash. Leases use ATO residual guidelines; chattel mortgages and hire purchase have different treatment.
See GST Treatment and Tax Benefits for more detail.
Frequently asked questions
What is the minimum deposit for asset finance?
Typically 0–20% for established businesses, with some deals approved at 0% deposit. Startups, older assets or weaker credit often require 10–40%.
Do I always need a deposit?
No. If the file is strong and the asset is standard/new from a dealer, $0 deposit is often achievable. Higher-risk scenarios tend to need some deposit. See No Deposit Asset Finance.
Does the product type change the deposit?
Lenders focus on LVR and risk more than labels, but structures differ. Compare deposits for a Chattel Mortgage, Finance Lease and Operating Lease.
What can count as a deposit?
Cash, trade-in equity, or a supplier order deposit. Additional security can also support the structure.
How do balloons or residuals affect the deposit?
They lower repayments and help keep the LVR within policy, which can reduce or eliminate a cash deposit on suitable files. Learn more about balloons and residuals.
How can I minimise the deposit required?
Provide strong affordability documents, choose newer assets from dealers, consider a realistic balloon/residual, use trade-in equity or additional security, and show clear work pipeline if applicable.
Do GST and tax impact the deposit?
They can affect your cash position at settlement. Many businesses claim GST credits on their next BAS. Confirm details with your accountant. See GST Treatment and Tax Benefits.
Get help with your deposit
Want a quick read on the minimum deposit for your specific asset and file strength? Share a few details and we’ll map out your options.
Final takeaway
The minimum deposit for asset finance depends on the blend of borrower strength, asset quality and structure. Strong files buying standard assets can often proceed with little or no deposit, while higher-risk scenarios benefit from a deposit that keeps LVR within policy.
The most efficient structure is the one that fits your cash flow and objectives, not just the one with the smallest upfront outlay.