At a glance: typical deposit ranges
The minimum deposit for medical equipment finance depends on your business profile, the asset and the lender. As a practical guide:
- Established practices, new mainstream equipment: often 0%–10% deposit (sometimes $0 with strong files).
- Startups or limited trading history: commonly 10%–30%+ depending on strength and structure.
- Low-doc applications: often 10%–30% to offset reduced financial evidence.
- Used or highly specialised equipment: typically 10%–30%, higher if resale is uncertain.
- Private sales or soft-cost-heavy bundles: deposit likely unless supported by strong mitigants.
These ranges are indicative only—lenders assess overall risk. A stronger file can unlock lower or no deposit options.
How deposit requirements work
Deposit requirements are the lender’s way of balancing risk, asset value and your practice’s capacity to repay. In medical equipment finance, the deposit influences:
- Loan-to-value ratio (LVR): the lower the LVR, the lower the perceived risk.
- Repayments and total cost: more deposit usually means lower monthly repayments and less interest over the term.
- Approval certainty: a deposit can strengthen borderline files or help fund older/specialised assets.
- Pricing and terms: better overall risk can support sharper rates or more flexible structures.
Deposits should be considered alongside ownership goals and structure selection—chattel mortgage, hire purchase, finance lease or operating lease each treat deposits, GST and end-of-term outcomes differently.
When lenders ask for a higher deposit
Expect tighter deposit requirements when one or more of these apply:
- Startup or short trading history, limited external security or savings buffer.
- Weaker credit profile, recent arrears or high unsecured exposure.
- Older equipment, specialised devices with narrow resale appeal, or discontinued models.
- Private sales, equipment without robust warranties or unclear provenance.
- Bundles with high “soft costs” (software, installation, training) relative to tangible hardware.
Ways to reduce or avoid a cash deposit
- Use trade-ins or vendor discounts to lower the financed amount.
- Split out soft costs (software, install, training) where appropriate to tighten LVR.
- Consider a residual/balloon (where suitable) to balance upfront outlay with end-of-term flexibility.
- Fund GST within the facility (subject to structure) to conserve cash in the first quarter.
- Offer additional security or guarantees to support lower LVR without cash.
- Strengthen documentation (recent financials, BAS, bank statements) to improve credit appetite.
Documents that support the minimum deposit
Clear documentation reduces friction and can help you achieve a lower or no deposit outcome:
- Supplier quote or tax invoice with make, model, serials and warranty details.
- ABN and GST registration status.
- Latest financials and/or BAS; for low-doc, recent bank statements and year-to-date figures.
- Evidence of consistent revenue and patient throughput (where relevant).
- Insurance confirmation (or intent) for the asset on settlement.
Choosing the right structure for your deposit
Different products treat deposits, GST and ownership differently:
- Chattel Mortgage: ownership from day one, GST typically claimable on purchase price (speak to your accountant).
- Hire Purchase: similar end-outcome to chattel mortgage with different accounting/tax timing.
- Finance Lease: no ownership during term; rentals may be deductible; residual required.
- Operating Lease: off-balance-sheet style rental with refresh/return options.
The “best” minimum deposit is the one that fits cash flow and tax strategy. Always obtain tax advice for your circumstances.
Get help with deposit requirements
Want to confirm the minimum deposit for your equipment and profile, or see if $0 upfront is possible? Share a few details and our Australian team will map options for you.
Frequently asked questions
What is the minimum deposit for medical equipment finance in Australia?
For strong, established practices buying new equipment, minimum deposit can be as low as 0%. Many lenders commonly look for 0%–10%. Startups, low-doc files, older or specialised assets may attract 10%–30%+.
When is 0% deposit realistic?
When your practice is established (typically 2+ years), the asset is new with strong resale, the supplier is reputable, and your financials or bank statements demonstrate stable cash flow and low leverage.
How does asset type affect deposit?
Mainstream devices (e.g., ultrasound, dental chairs, patient monitors) with clear resale profiles tend to qualify for lower deposits. Highly specialised or software-heavy solutions may need higher deposits.
Do used medical devices require a deposit?
Often yes. Late-model used equipment from a recognised dealer can still qualify for low deposits, but older or private-sale items typically require 10%–30% to balance risk.
How do GST and tax settings interact with the deposit?
Treatment varies by product (chattel mortgage, lease, hire purchase) and your GST status. The deposit and GST handling can impact cash flow in the first quarter. Always confirm with your accountant.
Will a bigger deposit improve my rate?
It can help, but pricing is based on overall risk: time in business, credit profile, financials, asset quality and LVR together. A deposit strengthens the file and may support sharper terms.
What if I have weaker credit or limited financials?
You may still qualify with a higher deposit, additional security, or a different structure. Low-doc and bad-credit pathways exist with practical conditions.
Which structure best suits low deposits?
Chattel mortgage and hire purchase commonly support low or no deposit for suitable files. Leases can also be effective depending on goals and tax advice.
Final takeaway
The minimum deposit for medical equipment finance isn’t one-size-fits-all. It depends on your practice’s trading history, credit strength, the asset’s resale profile, and the structure you choose.
With the right approach, many established clinics can access 0%–10% deposits—sometimes $0. If your file is newer or more complex, there are still ways to reduce upfront costs with the right documentation and structure.