Overview: what lenders mean by “minimum deposit”
The minimum deposit for new business asset finance is the smallest upfront contribution a lender will accept based on your risk profile and the asset you’re buying. For startups and new ABNs, deposit expectations are usually higher than for established businesses because trading history is limited.
- Typical startup range: 10%–30% of the GST‑inclusive price
- Possible 0% deposit: new or near‑new assets, clean bank statements, strong director credit, complete documents
- Higher deposits: older assets, private sales, soft assets (e.g., IT/fit‑out), weaker credit, low‑doc files
How deposits work with common structures
While policy varies by lender, the logic is similar across products. Your deposit reduces the financed amount and improves the lender’s position.
- Chattel Mortgage / Hire Purchase: a deposit is optional but common for new businesses. GST on the purchase is usually financed and claimable if eligible. A balloon can be added but does not replace a deposit.
- Finance Lease: instead of a “deposit”, lenders may require initial rentals (e.g., 1–3 months in advance) and set a residual value aligned with ATO guidelines.
- Operating Lease / Rental: typically involves rentals in advance and no ownership; deposit needs depend on asset and credit profile.
Lenders also look at the overall loan‑to‑value ratio (LVR), asset age and resale profile, and whether the sale is via a dealer or private party.
Typical minimum deposits by asset and scenario
These are indicative only. Your outcome will depend on credit, documents, and the exact asset.
- Business vehicles (utes, vans, cars): 0%–20% (0% possible with strong file and dealer sale)
- Trucks and yellow goods (excavators, loaders): 10%–30% (lower if new and from a dealer)
- Machinery and plant: 10%–30% depending on age and brand
- IT, office, POS, soft assets: 10%–40% or rentals in advance (soft assets often need more)
- Medical/dental devices: 0%–20% for mainstream equipment with strong file
- Hospitality/fit‑out: 20%–40% or structured as rentals in advance
Scenario signals:
- ABN under 12 months with strong statements and good director credit: 10%–20%
- No property backing and limited docs: 15%–30% (low‑doc depends on lender)
- Private sale or older asset: add 5%–10% to the above ranges
What affects the deposit you’ll be asked for
- Time trading and ABN status (under/over 12–24 months)
- Documents: bank statements, BAS, invoices/quotes, lease agreement (if relevant)
- Director credit history and any prior credit events
- Asset risk: new vs used, dealer vs private sale, brand, resale market
- Structure choices: product type, term, balloon/residual, rentals in advance
- Secondary strength: property ownership, cash reserves, trade‑in equity
Explore related guidance: requirements, who qualifies, minimum credit score, balloon payments, loan terms.
Ways to reduce or avoid a deposit
- Provide stronger docs: 3–6 months business bank statements, BAS, clear supplier invoice
- Choose lower‑risk assets: newer, dealer‑supplied, mainstream brands
- Consider structure: chattel mortgage or hire purchase with sensible balloon/residual
- Use trade‑in equity or a director’s contribution to lower the financed amount
- Bundle assets under a master agreement to reduce per‑item risk (for IT/office)
- Improve statement conduct 60–90 days before applying (limit overdrawn days)
Related pages: low doc asset finance, startup equipment finance.
Quick examples
- $80,000 ute via dealer, ABN 8 months, GST‑registered, good bank conduct: 10% deposit likely; 0% possible with strong credit and docs.
- $150,000 excavator, new company, director owns home, dealer sale: 15%–20% deposit common; balloon 20% may be acceptable.
- $60,000 kitchen equipment for café fit‑out, ABN 4 months: 20%–30% or rentals in advance under a lease‑style structure.
- $40,000 IT and POS bundle, startup with clean statements: 10%–20% or 1–3 rentals in advance on a rental/lease.
Approval and documentation for new businesses
Clear documentation reduces friction and can lower deposit needs. Lenders may request:
- ABN/ACN and director ID
- Supplier quote or tax invoice and asset details (VIN/serial, year, hours/kms)
- 3–6 months business bank statements; BAS if GST‑registered
- Simple business overview: what the asset does, revenue sources, contracts/pipeline
- For fit‑outs or soft assets: itemised list, installation schedule, and lease of premises
Learn more about the approval process and current interest rates.
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Frequently asked questions
What is the minimum deposit for new business asset finance?
Most new businesses are asked for 10%–30% depending on asset type, time trading, documents, and director credit. Strong files can be approved with 0%.
Can I get 0% deposit as a startup?
Yes, sometimes. It’s most achievable for newer dealer‑supplied assets where you provide clean bank statements, good director credit, and complete documents. Pricing and limits may be tighter.
Does a balloon payment reduce the deposit I need?
No. A balloon lowers repayments by moving part of the principal to the end. Lenders may still require a deposit based on their risk view.
Do I need to pay the GST upfront as a deposit?
Usually not. With chattel mortgage or hire purchase, the GST is typically financed and claimable if eligible. Some startups choose to pay it upfront to reduce the loan balance.
Are private sales or older assets more likely to need a deposit?
Yes. Private sales and older assets often attract higher deposits due to verification and resale risk.
What counts as a deposit vs a dealer holding deposit?
Your contribution that permanently reduces the financed amount is the deposit. A dealer “holding deposit” simply holds the asset off market; it may or may not become part of the finance deposit depending on the contract.
Can trade‑ins or cashbacks reduce my deposit?
Yes. Trade‑in equity or supplier/manufacturer rebates can reduce the net amount to finance, which can lower or replace a cash deposit.
How fast can I get an answer on my likely deposit?
With a supplier quote and 3–6 months bank statements, an indicative view is often possible the same day.
Final takeaway
The minimum deposit for new business asset finance depends on your file strength and the asset you’re buying. Aim for clear documents, dealer‑supplied or mainstream assets, and a structure that fits cash flow. That combination can lower (or remove) the deposit required.
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