Quick answer: What’s the minimum deposit for startup equipment finance?
For Australian startups, typical minimum deposits range from 0% to 30% of the GST‑exclusive asset price. Many approvals land at 10%–20% for early‑stage businesses. Some lenders will approve no‑deposit funding if the overall profile is strong (for example, property‑backed guarantor, clean credit, solid savings, or confirmed contracts). Older or specialised assets, private sales, or weaker credit may push deposits higher (sometimes 20%–40%).
- Common range for startups: 10%–20%
- Possible with no deposit: yes, case‑by‑case
- Higher deposits likely for: older/used assets, private sales, limited experience, or adverse credit
What counts as a “deposit” in equipment finance?
Lenders look at your “skin in the game” in a few ways. Your deposit can be cash, but it can also be demonstrated through other equity inputs:
- Cash paid to the supplier (traditional deposit)
- Trade‑in value or equity in existing equipment
- Director’s equity contribution (savings injected at settlement)
- Advance rental (for leases, the first rentals paid upfront)
- Funding GST separately (some lenders prefer GST‑exclusive funding; others may require you to cover the GST at settlement)
Different products handle deposits differently. If you’re comparing structures, see: Chattel Mortgage deposit, Hire Purchase deposit, Finance Lease deposit and Operating Lease deposit.
When a deposit is usually required
Startups are higher‑risk by definition, so lenders often ask for a deposit to bring the loan‑to‑value ratio (LVR) into a comfortable range. Deposits are more likely when:
- You’ve been trading for less than 12 months or are pre‑revenue
- Credit history has late payments, defaults, or recent enquiries
- The asset is older, highly specialised, or hard to resell
- It’s a private sale or the supplier can’t offer strong warranties
- You want to finance the GST within the loan rather than claim it via BAS
- Financials or bank statements show tight cashflow buffers
When you may not need a deposit
No‑deposit startup equipment finance is possible with the right mix of strengths. Lenders sometimes approve 100% of the GST‑exclusive price (and occasionally more) where there is:
- Clean credit and stable personal banking conduct
- Relevant industry experience or strong resumes of key people
- Firm contracts, purchase orders, or confirmed forward work
- Property‑backed guarantor or additional security
- Clear evidence of savings or working capital capacity
- Dealer‑supplied asset with good age, condition, and resale profile
Explore the pros and cons in more detail: No Deposit Asset Finance.
How deposit size changes your deal
- Approval odds: A sensible deposit can strengthen approval for newer businesses.
- Repayments: Larger deposits lower the financed amount and the monthly repayment.
- Pricing: Lower LVR can improve the interest rate and overall cost.
- Residuals/balloons: You can pair deposits with balloons to fine‑tune cash flow.
- Security: Bigger deposits may reduce the need for additional security.
If your goal is the smallest upfront outlay, compare deposits with balloons and term length: Startup balloon payments and Startup loan terms.
Startup scenarios and indicative deposits
These examples are illustrative only. Lenders assess the full picture before confirming a figure.
- New ABN, clean credit, relevant experience, buying late‑model gear from a dealer: deposit as low as 0%–10% may be possible.
- 6 months trading, minor credit blemishes, used equipment (5–7 years old): expect around 10%–25% depending on asset and cash flow.
- Pre‑revenue or specialised asset with limited resale: 20%–40% deposit is common, or additional security may be requested.
How to reduce the deposit a lender asks for
- Choose assets with strong resale (age, brand, condition, dealer warranties)
- Provide recent bank statements showing good conduct and headroom
- Show relevant experience or line up work (contracts/POs/letters of intent)
- Offer a director’s guarantee or property‑backed guarantor if available
- Consider a small balloon/residual to optimise LVR and repayments
- Keep credit enquiries tight and address any bureau issues early
For supporting documents, see Startup equipment finance requirements.
Approval and documentation
Deposit settings flow from risk and evidence. Startups can improve outcomes by preparing:
- ABN and (if registered) GST details
- Asset quote/invoice and supplier details (dealer preferred)
- 3–6 months of personal and any business bank statements
- Resume or summary of relevant industry experience
- Forecast, pipeline, contracts, or purchase orders (if available)
- Any existing asset details for trade‑ins or security support
Need timing expectations? See Startup approval process.
Get help with your startup deposit
Want a clear view of the minimum deposit for your startup equipment finance, plus options to lower your upfront cost? Send an enquiry and we’ll map out practical paths based on your asset, timeline, and cash flow.
Frequently asked questions
What is the minimum deposit for startup equipment finance?
Most lenders look for 10%–20% for new or early‑stage businesses, but approvals can range from 0% to 30%+ depending on asset quality, credit, experience, and cash flow. No‑deposit options are possible where the overall file is strong.
Can startups get equipment finance with no deposit?
Yes, case‑by‑case. You’ll usually need clean credit, relevant experience, dealer‑supplied assets with good resale, and evidence of income or pipeline work. A guarantor or additional security can also help. Learn more: No Deposit Asset Finance.
Does the asset type or age change the deposit?
Yes. Newer, mainstream assets from dealers often attract lower deposits. Older, specialised, or private‑sale assets generally require higher deposits due to resale and condition risks.
How does GST affect my deposit?
Many lenders prefer funding the GST‑exclusive price. If you want to include GST in the finance, some may ask for more deposit or an advance rental. Alternatively, you can fund GST‑exclusive and claim GST on your BAS (speak with your accountant).
Will a deposit improve my interest rate?
A larger deposit lowers the LVR, which can improve pricing and approval confidence. The effect varies by lender, asset, and overall risk profile. See rates context here: Startup equipment finance rates.
What if I don’t have cash for a deposit?
You may be able to use a trade‑in, provide a guarantor, or adjust structure (balloon, term, or product type). The right mix can reduce or remove the need for cash upfront.
Which product suits startups best if I want a small deposit?
It depends on your tax position, ownership goals, and asset type. Chattel Mortgage and Hire Purchase can work well for many startups; leasing options can also reduce upfront cost via advance rentals. Compare options here: Equipment loan vs lease.
Final takeaway
The minimum deposit for startup equipment finance in Australia usually sits between 0% and 30%, with 10%–20% common for early‑stage businesses. Your actual figure depends on asset quality, supplier, experience, credit, and cash flow. The right structure balances upfront cost with approval strength and sustainable repayments.
If you want help tightening the numbers and reducing upfront cost, reach out and we’ll map the options.
See also: deposits across related pages
- Minimum Deposit for Equipment Finance
- Minimum Deposit for Asset Finance
- Minimum Deposit for New Business Asset Finance
- Minimum Deposit for Bad Credit Asset Finance
Pillar resources: Asset Finance Australia, Equipment Finance Australia, Asset Finance Guide, Equipment Finance Guide, How to Choose Asset Finance.