Overview
The minimum deposit for restaurant equipment finance typically ranges from 0% to 30% of the GST-inclusive purchase price. Strong, established venues can often secure 100% funding (no deposit), while newer businesses, private sales or older assets may require a larger upfront contribution.
Your deposit affects risk, repayments and total interest. A higher deposit can lower monthly costs and broaden lender appetite, but a well-supported no-deposit structure can preserve cash for staff, stock and marketing when you need it most.
Related reading: How restaurant equipment finance works and current interest rate drivers.
How deposit requirements work
Lenders look at the asset, your business profile and the deal structure to decide whether a deposit is needed and how big it should be. This is essentially a loan‑to‑value question plus serviceability:
- Asset profile: serialised, dealer-supplied items (e.g. combi ovens, fridges, dishwashers, POS, coffee machines) are easier to fund than “soft” costs (fitout, installation, smallwares).
- Business strength: time trading, revenue stability, bank statements and clean credit reduce perceived risk.
- Vendor type: dealer invoices are preferred; private sales may attract a deposit.
- Product type: chattel mortgage and hire purchase commonly allow 0–20% deposits; a finance lease often uses an upfront rental instead of a “deposit”.
- Residual/balloon: setting a realistic balloon can lower repayments and sometimes reduce the need for an upfront deposit.
Note: A supplier “holding deposit” to place your order is separate from the finance deposit. If finance settles, any supplier deposit paid is normally credited against the invoice total.
Typical deposit by scenario
- Established venue (2+ years trading, clean credit, GST registered): 0–10%
- Startup or new site (ABN < 24 months or limited financials): 10–30%
- Dealer-supplied new equipment: 0–10% (often 0% for strong files)
- Used equipment (good condition, serialised): 5–20%
- Private sale or non-serialised/“soft” costs (fitout, smallwares): 10–40%
- Low-doc or alternative-doc applications: 0–20% depending on strength
- Credit challenges or ATO arrears: commonly 10–40% with extra support
These are indicative only. The actual deposit depends on the full picture: asset mix, documentation, serviceability and credit profile.
See also: no deposit asset finance, startup equipment finance and bad credit asset finance.
What drives the required deposit
- Trading history and stability: longer, steady revenue usually means lower or no deposit.
- Credit health: director and business credit scores, payment conduct and any prior defaults.
- Documentation depth: full financials, BAS and bank statements reduce risk versus low‑doc.
- Asset quality: new, branded, serialised equipment with strong resale profile improves terms.
- Supplier type and invoice detail: clear, itemised dealer quotes are preferred over private sales.
- Deal structure: appropriate loan term and balloon/residual aligned to asset life.
- Existing commitments: bank statement conduct and current lender exposure.
- Tax and GST settings: ABN and GST registration status, and whether you’re seeking to claim GST on purchase or pay via rentals.
Get broader context in: requirements, loan terms, and pros and cons.
Ways to reduce or avoid a deposit
- Strengthen documentation (recent BAS, financials, clean bank statements).
- Choose dealer-supplied, serialised equipment where possible.
- Offer a sensible balloon/residual aligned to asset life and resale.
- Leverage trade-ins or existing asset equity to offset the upfront.
- Stage the installation into financeable tranches to reduce soft-cost weighting.
- Provide director guarantee or additional security if appropriate.
- Time settlement near your BAS period to align with expected GST refunds.
If your priority is preserving cash, compare structures in equipment loan vs lease and lease vs hire purchase.
Approval and documentation
Expect to provide identification, ABN/GST details, an itemised supplier quote/invoice, and recent bank statements. Stronger (often no‑deposit) files typically include:
- 12–24 months BAS and/or financial statements
- Bank statements showing stable trading and no material arrears
- Clear credit file for the business and directors
- Asset details (make, model, age, serial numbers) and installation scope
Low‑doc pathways exist, but may increase deposit or pricing. Learn more about approval timing and credit expectations.
Simple deposit examples
- $80,000 kitchen package (dealer, new). Established venue, clean credit. Chattel mortgage, 60 months, 20% balloon. Indicative deposit: 0–5%.
- $35,000 coffee machine + grinder (dealer, new). Startup cafe, ABN 6 months. Hire purchase, 48 months, 10% balloon. Indicative deposit: 10–20%.
- $50,000 used combi oven (private sale, 5 years old). Established venue, mixed credit. Chattel mortgage, 48 months, no balloon. Indicative deposit: 10–20%.
- $120,000 refit with large soft-cost component (joinery, plumbing, electrical). Finance lease with staged invoices. Indicative upfront (initial rental): equivalent of 1–3 monthly rentals.
Figures are examples only. Pricing and deposit outcomes vary by lender and file. See also: tax benefits, GST treatment and balloon and residuals.
Get help with your deposit
Want a quick read on whether you’ll need a deposit, and how much? Share a supplier quote (or budget) and a few details below. We’ll outline likely options, timeframes and documents.
Frequently asked questions
What is the minimum deposit for restaurant equipment finance?
Established venues with strong files may qualify for 0–10% deposits or none at all. Startups, private sales, older equipment or large soft-cost components are more likely to require 10–30%.
Can I get 100% finance with no deposit?
Yes, if the file is strong: clean credit, stable revenue, GST-registered ABN, and dealer-supplied, serialised equipment. Expect standard serviceability and documentation checks. See no deposit options.
Do leases require a deposit?
A finance lease often uses an upfront initial rental (e.g. 1–3 months in advance) rather than a “deposit”. An operating lease typically charges rentals in advance too.
How do balloons or residuals affect the deposit?
A realistic balloon/residual aligned to expected resale can reduce repayments and, in some cases, lessen the need for an upfront deposit. Learn more about balloons and residuals.
What about GST on the deposit?
Under a chattel mortgage or hire purchase, eligible GST-registered businesses can generally claim the full GST on the purchase price in their BAS even if financed. Leases charge GST on rentals over time. Get tax advice for your situation and see GST treatment.
Are fitout and installation costs financeable?
Often yes, but high proportions of soft costs can increase the upfront required. Staging invoices and providing detailed quotes can help. Compare structures in loan vs lease.
When is the deposit paid?
Supplier deposits may be paid to secure stock and are separate to any finance deposit. If a lender requires a deposit, it’s generally paid at or just before settlement and credited against the invoice.
Where can I learn about other restaurant equipment finance settings?
See requirements, approval time, interest rates, loan terms and pros and cons.
Final takeaway
The minimum deposit for restaurant equipment finance depends on asset quality, documentation and business strength. Strong, well-documented files can often avoid a deposit; newer ventures or complex installs may need 10–30%.
If you’re weighing cash preservation against repayments, compare structures and timing, then shape the deal to your venue’s cash flow. For tailored guidance, send your supplier quote and details above.