Overview: the short answer
The minimum deposit for equipment finance in Australia varies by asset, age, lender policy and your trading profile:
- Strong, established businesses buying from a dealer: often 0–10% deposit
- Startups (less than ~12–24 months trading): commonly 10–30% deposit
- Older/used or specialised assets: typically 10–30% deposit
- Private sales: usually 10–20% deposit
- Weaker credit/bad credit: often 20–40% deposit (sometimes more)
These are indicative ranges only. Lenders set maximum advance rates based on risk and resale profile. If minimising upfront cost is critical, see No Deposit Asset Finance.
Not sure where you fit? Get a deposit estimate
How minimum deposits work
In equipment finance, the “deposit” is the portion you contribute upfront so the lender’s exposure sits within policy. It’s shaped by:
- Product type: chattel mortgage, commercial hire purchase, finance lease or operating lease
- Advance rate (loan-to-value): how much of the total cost the lender will fund
- Transaction characteristics: dealer vs private sale, new vs used, local vs imported
A deposit is not always mandatory. With strong files and mainstream assets, lenders may allow 100% funding (including GST on certain products). In other cases, a deposit is requested to reduce risk. Learn more about structures: How Equipment Finance Works and Equipment Finance Balloon Payments.
Want help matching structure to your goals? Talk to a specialist
Typical minimum deposits by scenario
- New asset from an Australian dealer, established business with clean credit: often 0–10%
- Used asset up to ~5–7 years, dealer sale: usually 10–20%
- Older/high-hour equipment, niche or limited resale market: 15–30%+
- Private sale (no dealer warranty/support): commonly 10–20%
- Startup or limited financials (low doc): 10–30% depending on strength of BAS/bank statements
- Adverse credit history: 20–40% and tighter terms may apply
For sector-specific guidance, see: Machinery Finance, Truck Finance, IT Equipment Finance, Medical Equipment Finance.
Compare 0% options: No Deposit Asset Finance | Newer businesses: Startup Equipment Finance | Challenging credit: Bad Credit Asset Finance
Unsure which bucket you’re in? Check your deposit range
What influences your deposit
- Asset profile: new vs used, brand reputation, resale liquidity, age/hours/condition
- Supplier type: dealer (with invoice/warranty) vs private sale
- Business strength: time trading, profitability, ABN/GST registration, industry stability
- Credit history: past conduct, enquiries, ATO position, external arrears
- Documentation: full financials vs low doc (BAS/bank statements)
- Transaction extras: freight, installation, software, accessories and soft costs (some lenders won’t fund 100% of these)
- Structure: term length, balloon/residual, guarantees/security
See supporting topics: Equipment Finance Requirements, Equipment Finance Interest Rates, Equipment Finance Loan Terms.
How to reduce the deposit
- Choose mainstream, newer assets from reputable dealers
- Provide stronger documentation (recent financials, BAS and bank statements)
- Consider an appropriate balloon/residual to keep LVR within policy
- Offer a trade-in or demonstrate equity in existing assets (where applicable)
- Avoid heavy soft-cost components or separate them where possible
- Clear minor credit issues and address any ATO arrears before applying
- Seek pre-approval before paying large supplier deposits to keep GST and structure clean
We can review your file and suggest the lowest realistic deposit for your scenario. Get tailored advice
Get help with your deposit
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Prefer to keep reading? See GST Treatment and Tax Benefits.
Approval and documentation
The deposit you’re asked to contribute often depends on how well your application explains risk and repayment capacity. Typical evidence includes:
- Invoice/quote with supplier details, serials/specs and clear cost breakdown
- ABN/GST registration details and time in business
- Recent BAS and business bank statements (low doc), or full financials (full doc)
- Asset details (age, hours, condition), photos, and for private sales: proof of ownership
- Explanation of use and expected business benefit
More complete files generally unlock lower deposits and sharper pricing. Learn about timing here: Equipment Finance Approval Time.
GST, tax and your deposit
With products like a chattel mortgage or commercial hire purchase, many businesses finance the GST-inclusive amount, then claim the GST input tax credit on their BAS (subject to eligibility). Structuring correctly can reduce the upfront cash you need to contribute while keeping repayments manageable.
Related guidance: Equipment Finance GST Treatment and Equipment Finance Tax Benefits.
Need help aligning structure with tax and cash flow? Get guidance
Frequently asked questions
What is the minimum deposit for equipment finance?
It varies by scenario. Strong, established businesses buying standard assets from dealers can sometimes proceed with 0% deposit. Startups, private sales, older or niche assets, and weaker credit usually require 10–40% upfront.
Can I get equipment finance with no deposit?
Yes, in some cases. Lenders may allow 100% funding for mainstream assets when the business is established, documentation is solid and credit is clean. See No Deposit Asset Finance.
Do private sales need a larger deposit?
Often yes. Without dealer warranties and checks, lenders may request 10–20% deposit and additional verification (proof of ownership, PPSR checks, inspections).
How do balloons or residuals affect my deposit?
A well-sized balloon can help keep the lender’s exposure within policy, which can reduce the deposit required. It should still align with the asset’s expected value at term end. Learn more: Balloon Payments Explained.
What documents help lower the deposit?
Up-to-date financials or, for low doc, strong BAS and bank statements, plus clear supplier invoices, can support a lower deposit by demonstrating capacity and reducing uncertainty.
Does asset type change the minimum deposit?
Yes. Mainstream, liquid assets generally need less deposit than older, high-hour or highly specialised items with limited resale markets.
Should I pay a supplier deposit before approval?
Seek pre-approval first. Paying a large supplier deposit can complicate GST and structure. A quick pre-approval clarifies how much, if any, deposit the lender requires.
Where can I compare other decision factors?
See Interest Rates, Loan Terms, Pros and Cons, and Who Qualifies for Equipment Finance?
Still have questions? Ask now
Final takeaway
The minimum deposit for equipment finance is not one-size-fits-all. It reflects the asset, the strength of your file, and the structure you choose. A quick pre-approval clarifies your likely deposit, repayments and term so you can commit with confidence.
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