Business loan deposits and when they apply
Business loan deposits and when they apply
Am I eligible?
You probably are, you just need:
- An active ABN or ACN
- 6+ months in business
- $5,000+ in monthly revenue
Business loan deposits and when they apply
Whether a business loan requires a deposit depends on the loan type, the lender and the purpose of the funds. Many unsecured business loans do not require a deposit, while secured lending involving vehicles or equipment may ask for a contribution from the borrower.
This page explains when deposits are needed, how they work and what to expect when applying for different types of business funding in Australia.
Do you need a deposit for a business loan in Australia?
You may not need a deposit for an unsecured business loan because the funding is assessed against business revenue, trading history and repayment capacity rather than a specific asset purchase. A deposit or borrower contribution is more likely to arise when the loan is tied to a vehicle, equipment, property or business acquisition, but the requirement depends on the lender and structure.
SimplyFunded is a direct business lender helping Australian SMEs understand whether their funding purpose fits unsecured business finance. Before applying, identify whether the funds are for general working capital or a particular asset, confirm the total purchase cost and check whether a contribution is required. A no deposit business loan can still have interest, establishment fees and other costs, so “no deposit” does not mean “no cost”.
Compare the deposit requirement with the total repayment, security terms and cash flow impact. Review the business loan comparison, check the business loan rates and prepare the business loan requirements before submitting an application.
Do you need a deposit for an unsecured business loan?
Unsecured business loans typically do not require a deposit because the loan is not tied to a specific asset.
Instead of a deposit, lenders assess the business revenue, trading history and ability to repay from ongoing operations.
The amount approved is based on affordability rather than a percentage of an asset value.
How deposits work for secured vs unsecured loans
Secured loans ( vehicle, equipment, property) may require a deposit of 10-30% of the asset value, depending on the lender and the asset type.
The deposit reduces the lender's risk and shows the borrower has committed funds to the purchase.
Unsecured loans shift the assessment focus to business performance instead of asset value or borrower contribution.
Deposit considerations by loan type
Vehicle and equipment loans: some lenders may ask for a deposit, while others offer up to 100% funding based on business strength.
Business acquisition: deposits may be expected depending on the purchase structure and the value of goodwill or stock.
Short term and cash flow funding: deposits are not typical because the loan is for working capital, not a specific asset purchase.
Check your eligibility
SimplyFunded requires at least 6 months trading history and AUD $5,000 minimum monthly revenue. If your business meets these criteria, you can start an application online.
Related funding options
You can also review business loan FAQs or speak with the team through the contact page.