Equipment Finance with No Deposit

Yes. No-deposit — or 100 per cent — equipment finance is widely available in Australia and is the default outcome for many businesses. Because the lender takes security over the asset, a deposit is a risk buffer rather than a strict requirement. Where the asset holds its value and the borrower profile is strong, that buffer is not needed.

You are most likely to be approved with no deposit if your business has been trading for at least 12–24 months, the directors own property, the asset is new or late-model and mainstream, and it is being purchased through a licensed dealer. In these cases lenders will often fund the full invoice amount and sometimes the on-road costs, delivery or installation as well.

A deposit is more likely to be requested when the business is newly established, the directors do not own property, there is adverse credit history, the asset is specialised or ageing, or it is a private sale. In those situations 10–20 per cent is typical, though a trade-in, a balloon adjustment or a shorter term can sometimes substitute for cash.

Keep in mind that no deposit means a larger amount financed and therefore higher repayments and more total interest. It is worth comparing the cash-flow benefit of retaining your capital against the extra cost over the term. Lonix can model both scenarios and identify which lenders on our panel are currently writing 100 per cent deals for your asset type.