No Deposit Equipment Finance Australia 2026: The Complete Guide to 100% LVR

Can you finance equipment in Australia with no deposit? The short answer is yes — but eligibility depends on your credit profile, the asset type, how long you've been operating, and which lender you use. This guide explains how 100% LVR equipment finance works, who qualifies, what it costs, and how to give yourself the best chance of approval.

What Is 100% LVR Equipment Finance?

LVR stands for Loan-to-Value Ratio — the percentage of an asset's value that is financed. A 100% LVR loan means the lender advances the full purchase price of the equipment with no upfront deposit required from the borrower.

The equipment itself acts as the primary security. Because the lender has no immediate equity buffer, 100% LVR loans carry slightly more risk for the lender — but well-established businesses with strong credit history can regularly access them at competitive rates.

Who Qualifies for No-Deposit Equipment Finance?

Lenders assess several factors when deciding whether to extend 100% LVR finance. Meeting more of these criteria increases your chances:

Factors that help

• Trading history: 2+ years of ABN activity is the sweet spot. Many lenders have a hard minimum of 12 months. Shorter trading history almost always requires a deposit or guarantor.
• Clean credit profile: No defaults, writs, judgements, or Part IX agreements in the last 5 years. Recent on-time payment history across existing facilities helps.
• Strong cash flow: Profit after tax and adequate serviceability buffer. "Low-doc" lenders use bank statement analysis (ATO income confirmation) rather than full financial statements.
• High-value, liquid asset: New equipment from an authorised dealer — especially trucks, excavators, medical equipment — has clear market value and is easier to repossess and resell if needed.
• Owner's residential property: Not required, but if the director/owner has home equity, it significantly expands lender options and lowers the rate premium.
• GST registration: Registered businesses can claim the input tax credit, which reduces the effective loan amount by ~9.1% — a useful negotiating point with lenders.

Factors that work against you

• Operating for less than 6 months
• Credit defaults, arrears, or a Part IX / Part X arrangement
• Sole trader with minimal formal income documentation
• Purchasing used or specialised equipment with limited resale market
• High existing debt relative to equity and revenue

If your profile has one or two negative signals, a specialist broker can often work around these by accessing lenders with different credit policies — or by structuring in a balloon/residual payment to lower the monthly obligation and offset the LVR risk.

Which Assets Can Be Financed Without a Deposit?

Not all assets attract 100% LVR financing. Lenders prefer assets that:

• Are new or near-new (under 5 years old preferred)
• Have a clear, verifiable market value
• Have strong resale demand in Australia
• Can be registered to enforce security (e.g. PPSR registration for plant and equipment)

Rate Premium: What Does No Deposit Cost You?

No-deposit finance is not free. Lenders compensate for the higher LVR risk through improved rate pricing, or by requiring a balloon payment to lower the ongoing LVR during the loan term.

Indicative rate differential: deposit vs no-deposit

On a $100,000 excavator over 5 years, a 1% difference in rate adds about $2,800–$3,100 in total interest. Before choosing no-deposit simply because you can, model the numbers — a small deposit can meaningfully reduce your total finance cost.

Best Finance Structures for 100% LVR

Your chances of getting 100% LVR depend partly on the structure you choose:

Chattel Mortgage (100% LVR)

The most common route for business buyers. The borrower owns the asset from day one; the lender takes a registered charge over it. For GST-registered businesses, the entire GST component (1/11th of the purchase price) can be claimed as an input tax credit on the next BAS — effectively reducing the true amount at risk for the lender.

Best for: Established ABN holders, GST-registered, purchasing new or near-new assets from dealers.

Finance Lease (typically 100% LVR)

The lender owns the asset during the lease term and the business makes monthly lease payments. At the end of the term, the business can buy the asset for a residual value. Because the lender retains title, they accept higher LVR more readily.

Best for: Businesses that want fully deductible lease payments and don't need to show ownership on the balance sheet.

Commercial Hire Purchase (100% LVR)

Similar to chattel mortgage in structure. Monthly hire payments include principal and interest; the business receives ownership at the final hire payment. Often used by businesses acquiring assets for personal use through their ABN structure.

Operating Lease

For assets that will be returned or upgraded at the end of the term. The lender retains residual risk, which often makes 100% LVR more accessible — particularly for IT, fleet, and medical equipment.

How to Improve Your Approval Odds for No-Deposit Finance

If you're close to qualifying but not quite there, these steps can help:

1. Use a broker, not a direct lender

Brokers access 30+ lenders and know which ones have the most flexible 100% LVR policies. A direct application to a bank is likely to result in a conditional approval requiring a deposit. A broker finds the lender that fits your profile.

2. Pre-qualify before applying

Use our pre-qualification tool to check your indicative eligibility without a hard credit inquiry. This helps you understand what's achievable before you approach lenders.

3. Order of applications matters

Every application for credit creates a hard inquiry on your credit file. Multiple applications in a short period can reduce your score. Use a broker who submits to the best-fit lender first — not multiple lenders simultaneously.

4. Build 12 months of clean repayment history

If your credit file has gaps or defaults, 12 months of consistent, on-time repayments on any credit product (business card, overdraft, existing loan) substantially improves your profile for asset lenders.

5. Consider a balloon or residual payment

A balloon reduces the monthly repayment and lowers the ongoing LVR, which can tip a borderline application into an approval. For a $120,000 truck over 5 years, a 20% balloon ($24,000) reduces monthly repayments by around $450 and brings the lender's mid-term LVR to ~60%.

6. Show ATO tax compliance

Outstanding tax debt (ATO Director Penalty Notices, TFN debt) is one of the most common reasons for application decline. Obtain an ATO debt confirmation letter before applying. If there is outstanding debt, structure a payment plan first.

7. Provide a signed and dated invoice

Lenders want to see a current dealer invoice with the asset details, serial number, condition, and price. For private sales, a statutory declaration from the seller is typically required.

Alternatives If You Don't Qualify for 100% LVR

If your profile doesn't quite make the 100% LVR cut, you have several options:

• 10–20% deposit: Even a modest deposit significantly expands lender choice and reduces your rate. If cash-flow is tight, ask whether the deposit can cover the GST component — since GST is refundable on the next BAS, effectively costing you nothing.
• Addback the GST credit: A GST-registered business purchasing a $110,000 (inc. GST) machine can claim back $10,000 on the next BAS. Some lenders will allow a 90% LVR if the borrower puts in the GST portion, knowing the borrower will recover it quickly.
• Trade equity: If you have existing equipment that is unencumbered (no finance owing), a lender may accept it as additional security rather than cash — enabling 100% LVR on the new asset.
• Government-backed loans: The ATO's Small Business Finance Guarantee Scheme (via ASBFB) provides partial government guarantees to lenders, which can unlock additional LVR headroom. Ask your broker if your purchase qualifies.
• Equipment rental: For short-term or uncertain needs, renting rather than buying avoids the finance entirely. At the point where you've clear deployment for the asset over 3+ years, the economics of ownership almost always win.