Short answer: typical minimum deposits
The minimum deposit for earthmoving equipment finance in Australia depends on your profile, the asset, and the source of purchase. As a guide:
- Established business, full-doc, new dealer-supplied asset: 0–10% deposit is often achievable
- Established business, used dealer-supplied asset (age/hrs reasonable): ~5–20%
- Private sale or auction purchases: ~10–30% (higher verification risk)
- Startup or early-stage business: ~10–40% depending on experience and contracts
- Low-doc or limited financials: ~10–20% typical
- Adverse credit history: ~20–50%+ may be required
These ranges are indicative only. Lender policy, asset specifics and supporting documents can shift the outcome up or down.
What drives the minimum deposit?
Lenders price risk through loan-to-value ratio (LVR) and structure. The lower the perceived risk, the more likely a minimal or no deposit outcome is. Key factors include:
- Business profile: time trading, profitability, cash flow, director guarantees
- Credit history: recent conduct, defaults, ATO debt, external arrears
- Asset specifics: type (excavator, loader, dozer, grader), age, hours, condition, resale strength
- Source of purchase: dealer with warranty vs private sale/auction
- Documentation type: full-doc vs low-doc (bank statements/BAS only)
- Facility type: chattel mortgage, hire purchase, finance lease
- Overall security position: extra collateral, trade-in equity, cash reserves
- Industry and use: civil, mining, demolition, quarrying; contract quality and certainty
Common minimum deposits by scenario
Every lender sets its own LVR bands, but these real-world patterns are common:
- Dealer-supplied new equipment with warranty: 0–10% deposit, often first repayment in advance only
- Late-model used from a reputable dealer: 5–20% depending on age/hours and resale profile
- Older/high-hour or specialised gear: 20%+ deposit to keep LVR within policy
- Private sale/auction: 10–30% deposit plus condition report and title checks
- Startup/ABN under 24 months: 10–40% deposit (lower if strong contracts and experience)
- Low-doc: 10–20% deposit with strong bank statement/BAS support
- Impaired credit: 20–50%+ and tighter loan terms may apply
Ways to reduce or avoid a deposit
- Choose standard, dealer-supplied assets with warranty to improve LVR tolerance
- Provide full-docs (financials, BAS, bank statements) to strengthen the case
- Use trade-in equity or supplier deposits already paid to count toward your contribution
- Add a reasonable balloon/residual to manage repayments (within ATO/resale guidelines)
- Offer extra security (other clear title assets) if appropriate
- Show strong work pipeline or signed contracts supporting repayments
- Ensure clean title, valuation, and condition reports for used/private purchases
- Match the facility to your use-case (e.g., chattel mortgage for ownership/tax treatment)
Deposit, balloon/residual and repayments
Deposit and balloon both influence LVR and repayments, but they serve different purposes. A deposit lowers the amount financed on day one. A balloon or residual defers a portion to the end.
Quick example: Excavator price $220,000 inc. GST
- No deposit, 60 months, 20% balloon → higher monthly, lump sum at end
- 10% deposit, 60 months, 20% balloon → lower monthly and lower end balance
- 20% deposit, 48 months, 0–10% balloon → fastest equity build, higher monthly
Lenders may still require a deposit if overall LVR (after balloon) breaches policy.
Documentation that helps approval
Clear documents can lower perceived risk and reduce the deposit needed:
- ABN, GST registration, driver’s licence, trust/company structure if applicable
- Latest financials and/or BAS, plus 6–12 months business bank statements
- Asset details: make/model, year, hours, serial/VIN, condition, photos
- Supplier invoice/quote; for private sales: proof of ownership, PPSR, inspection/valuation
- Work pipeline: contracts, purchase orders, utilisation plan
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Frequently asked questions
What is the minimum deposit for earthmoving equipment finance in Australia?
For strong, established businesses buying new dealer-supplied equipment, the minimum deposit can be 0–10%. Used gear, private sales, startups, low-doc, or higher-risk profiles generally see 10–30%+, and severely impaired credit can push to 20–50%+.
Can I get no-deposit finance for an excavator or loader?
Yes, where the business is established, the asset is standard with good resale, and documentation is solid. Lenders may fund 100% with the first repayment in advance. Startups, private sales, older or specialised gear often require a deposit.
How does a private sale or auction impact deposit size?
Private sales and auctions increase verification risk. Expect additional checks and typically a 10–30% deposit. A clean PPSR, condition report and clear title help.
Does GST affect the deposit on a chattel mortgage?
Finance is usually written on the GST-inclusive amount. With a chattel mortgage, you may claim the GST on your next BAS (subject to ATO rules), which helps cash flow, but it doesn’t automatically remove a deposit requirement.
Do trade-ins or supplier deposits count toward the required deposit?
Yes. Trade-in equity, deposits already paid to the supplier, or rebates can reduce any additional cash deposit needed.
Is the deposit different for chattel mortgage, hire purchase or finance lease?
All three can be arranged with little or no deposit for strong files and standard assets. Policy varies by lender, asset and documentation. Finance leases often take first rental in advance.
How much deposit do startups typically need?
Startups commonly need 10–40% depending on experience, contracts, cash reserves, and asset type. Providing strong support (BAS/bank statements, pipeline) can reduce this.
Will a balloon or residual reduce the deposit I need?
A balloon lowers repayments but doesn’t replace a deposit. If the end LVR is still above policy, a lender may require a deposit even with a balloon.
Final takeaway
The minimum deposit for earthmoving equipment finance typically falls between 0–30%+, with no-deposit possible for strong, full-doc files buying standard dealer-supplied assets. Asset age, purchase source, business strength, and documentation are the levers that most influence the outcome.
If you’re weighing up deposit size, balloons, and repayments, compare options before you commit. Use the links on this page to explore related topics—or send an enquiry for a tailored deposit estimate.