Needing new equipment while trying to protect your cash flow is a common challenge for Sydney business owners. Whether you are replacing a work vehicle, upgrading machinery, or expanding operations, upfront deposits can place pressure on working capital. That is why many businesses search for 100% equipment finance in Sydney, including no deposit equipment finance, and ask a simple question. Is it genuinely possible in Australia today?
In some situations, the answer may be yes. However, approval depends on lender policy, your business profile, the asset type, and the overall risk assessment. In this guide, we explain how 100% equipment finance works, when lenders may consider it, what they assess behind the scenes, and what costs and risks you should understand before proceeding.
At Unconditional Finance, we are finance brokers in Sydney who also arrange commercial and asset finance. Our role is to help you understand how lenders interpret your scenario and what may realistically be available under current Australian lending standards.
What 100% Equipment Finance Actually Means
When lenders refer to 100% equipment finance, sometimes described as no deposit equipment finance or equipment loan in Australia, they usually mean financing the full purchase price of the asset without requiring a cash deposit from the borrower.
This is different from:
- Traditional equipment loans requiring a 10% to 20% deposit
- Chattel mortgages with a borrower contribution
- Finance leases that may include residual or structured payments
In a 100% structure, the lender advances funds equal to the invoice value of the equipment. However, it is important to understand that “no deposit” does not always mean no upfront costs at all. Government charges, establishment fees, or insurance premiums may still apply, depending on the lender and structure.
Policies and definitions can vary by lender, and product features may change without notice.
Is No Deposit Equipment Finance Available in Australia?
In today’s Australian lending environment, some lenders do offer 100% equipment finance in certain circumstances. However, it is not automatic, and it is not suitable for every business or asset type.
Lenders assess risk across three main areas:
- The strength of your business
- The quality and resale value of the asset
- Your credit profile
If those factors align with the lender’s appetite, 100% funding may be considered.
When It May Be Considered
Some lenders may consider no deposit equipment finance where:
- The business has an established ABN, often trading for at least 12 months
- Financials or BAS statements show consistent turnover
- The asset is new or near-new with strong resale value
- The directors have a clean or largely clear credit history
- The industry is considered lower to moderate risk
In these cases, the lender may view the transaction as commercially reasonable without requiring borrower contribution.
When a Deposit May Still Be Required
A lender may require a deposit where:
- The business is newly established
- The asset is older or specialised
- Credit history shows prior defaults or arrears
- Financial performance is inconsistent
- The industry is considered higher risk
Each lender sets its own policy framework. Approval always depends on individual assessment.
How Lenders Assess 100% Equipment Finance Applications
Behind every “no deposit” structure is a detailed credit assessment. Even where asset finance is considered less complex than residential lending, lenders still apply credit assessment processes and commercial credit policies.
1. Business Structure and Trading History
Lenders review:
- ABN registration date
- Entity structure, such as a sole trader, a company, or a trust
- Length of time trading
- Industry classification
- Historical turnover
Some lenders may accept applications with 6 to 12 months trading history, particularly under low-doc options. Others may require full financial statements covering at least one financial year.
A longer trading history generally strengthens an equipment finance approval outcome under most commercial lending policy frameworks.
2. Financial Performance and Serviceability
Even in asset-backed lending, serviceability matters. Lenders typically assess:
- Net profit after expenses
- Add-backs where acceptable
- Existing loan commitments
- Director wages or drawings
- Cash flow stability
Low-doc options may rely on:
- Business Activity Statements
- Bank statements
- Accountant letters
Full-doc applications usually require:
- Two years financial statements
- Two years tax returns
- Interim financials in some cases
The repayment must appear manageable based on the lender’s servicing approach. Some lenders use internal buffers or stress testing, similar in principle to residential lending, although applied differently.
The Role of the Asset in 100% Finance Decisions
With equipment finance, the asset itself plays a major role in approval.
New vs Used Equipment
New equipment is generally viewed more favourably because:
- It has a clear invoice value
- Warranty coverage may apply
- Resale markets are more predictable
Used equipment may still qualify for 100% funding, but lenders often assess its:
- Age at settlement
- Age at the end of the loan term
- Market liquidity
- Condition reports
For example, some lenders set maximum age limits at the end of the term, such as 10 to 15 years, depending on the asset type. These limits vary between lenders.
Asset Type and Industry Demand
Common assets that may be considered include:
- Light commercial vehicles and utes
- Trucks and trailers
- Construction and earthmoving machinery
- Agricultural equipment
- Manufacturing plant and equipment
- Medical and specialised business equipment
Highly specialised, imported, or rapidly depreciating assets may attract stricter lending criteria or lower loan-to-value ratios.
Understanding Loan Structures for 100% Equipment Finance
Even with no deposit, the structure of the loan affects your repayments, cash flow, and end-of-term obligations.
Chattel Mortgage
A chattel mortgage is commonly used by GST-registered businesses. The lender takes a security interest over the asset, and ownership passes to the borrower at settlement.
Key features may include:
- Fixed or variable interest rates
- Terms typically range between 2 and 7 years
- Optional balloon payment
- GST claimable upfront if eligible
The lender registers their interest on the Personal Property Securities Register, known as the PPSR.
Finance Lease
Under a finance lease:
- The lender owns the asset during the term
- The business makes regular lease payments
- A residual value is set at the end
This structure may suit businesses focused on managing cash flow rather than immediate ownership. Residuals must generally align with ATO effective life guidelines.
Balloon Payments and Residuals
A balloon or residual reduces monthly repayments by deferring part of the principal to the end of the term. While this may assist cash flow, you must plan for:
- Paying out the balloon
- Refinancing the residual
- Selling the asset
Balloon amounts are typically structured in line with lender policy and ATO effective life guidelines. Businesses should speak with their accountant regarding tax treatment.
What “No Deposit” Does Not Mean
It is important to clarify what 100% equipment finance does not remove.
You may still be responsible for:
- Establishment or application fees
- Documentation fees
- Broker remuneration, if applicable and disclosed
- PPSR registration fees
- Comprehensive insurance
- Stamp duty in some asset categories
These costs vary between lenders and transactions.
The Impact on Cash Flow and Borrowing Capacity
Many businesses pursue 100% equipment finance to preserve working capital. This can support:
- Seasonal cash flow management
- Growth opportunities
- Fleet expansion
- Tax planning
However, additional debt still affects the overall financial position.
If you are also seeking a residential home loan, lenders will usually include commercial liabilities in their serviceability assessment. This is particularly relevant for business owners applying for personal lending.
We regularly see residential lenders request company financials or repayment evidence to understand the true impact of commercial obligations.
Low-Doc vs Full-Doc 100% Equipment Finance
Documentation strength can influence whether 100% funding is available.
Full-Doc Applications
Full financial statements often allow broader lender access. Some lenders may be more comfortable offering higher loan-to-value ratios when complete financials are provided.
Low-Doc Applications
Low-doc options may rely on:
- BAS statements
- Bank statements
- Accountant declarations
While convenient, low-doc lending can carry different pricing or stricter credit criteria. Some lenders may reduce maximum funding percentages under low-doc structures.
Policies differ between lenders and may change over time.
How We Assess 100% Equipment Finance Scenarios
As finance brokers in Sydney arranging commercial and asset finance, we start by understanding:
- Your trading history
- Your financial performance
- Your growth plans
- The specific asset being purchased
- Your broader financial objectives
We then compare lender policy rather than focusing solely on advertised rates. Some lenders may prioritise asset strength, others may emphasise financial depth.
Our role is to explain:
- Whether 100% funding may be realistic
- What documentation will likely be required
- How the structure affects repayments
- What risks should be considered
We operate under Australian Credit Licence obligations and provide general information to help you make informed decisions.
Current Market Conditions in Sydney
Sydney’s business landscape remains diverse, with active demand in:
- Construction and infrastructure
- Transport and logistics
- Trades and small business services
- Healthcare and professional services
Lender appetite can shift depending on broader economic conditions, interest rate movements, and sector-specific risk.
The Australian Bureau of Statistics publishes regular business and economic data, which lenders monitor when assessing industry exposure. Similarly, the ATO provides guidance on asset effective life, influencing residual structures.
Because credit conditions can change, eligibility and maximum funding levels may differ between lenders at any given time.
Application Process for 100% Equipment Finance
While each lender operates differently, the general process often includes:
- Initial discussion regarding business and asset
- Preliminary policy assessment
- Collection of required documents
- Credit submission and assessment
- Approval, documentation, and settlement
- PPSR registration
Timeframes vary depending on complexity, documentation readiness, and lender workload.
Is 100% Equipment Finance Right for Your Business?
100% equipment finance can make commercial sense where:
- Preserving working capital is critical
- Cash flow comfortably supports repayments
- The asset has strong resale value
- The business has a stable trading history
It may be less suitable where:
- Cash flow is already stretched
- Credit history is impaired
- The business is highly leveraged
- The asset is highly specialised or depreciates rapidly
Every scenario requires balanced consideration of risk and long-term financial position.
Exploring What May Be Possible for Your Business
Searching for 100% equipment finance (no deposit) is understandable when capital needs to remain inside your business. In Australia, it may be achievable depending on lender policy, asset strength, and your financial profile.
The key is realistic assessment rather than assumptions. Lender criteria, documentation requirements, and funding percentages can vary significantly and may change without notice.
If you would like to understand whether 100% equipment finance may be available for your business in Sydney, our team at Unconditional Finance can help you compare lender policies and explain the next steps.
Disclaimer: This information is general in nature and does not take into account your objectives, financial situation, or needs. Lending criteria, fees, terms, and availability are subject to individual lender policies and may change without notice. You should consider seeking independent financial and tax advice before making any financial decisions.
Frequently Asked Questions (FAQs)
Some lenders may consider newer businesses, but a deposit is more common if there is limited trading history or limited financial evidence. Your director experience, industry, and supporting documents can affect what is possible.
Some lenders may finance GST or on-road and delivery costs, depending on the structure and whether the invoices clearly itemise them. In many cases, lenders prefer the loan to match the equipment invoice value, so inclusions can vary.
Usually not. Equipment finance is typically secured against the asset being purchased, although some lenders may still require personal guarantees or additional comfort depending on the overall risk profile.
It usually will. Credit enquiries and ongoing liabilities may be visible and can be considered by lenders when you apply for other credit, including a home loan, depending on the lender’s assessment.
Some lenders may allow private sales, but many prefer dealer purchases because invoices, asset details, and verification are clearer. If private sales are accepted, extra checks and documentation are typically required.
Some lenders allow early payout, but fees or break costs may apply, especially on fixed-rate contracts or leases. The payout figure can also include the remaining balance and any applicable charges under the agreement.
Some lenders offer equipment refinance, but approval depends on the asset’s age, condition, value, and your business financials. The refinance amount may be limited to a percentage of a lender’s assessed value, not the original purchase price.