Business Loan Deposit Guide Australia

Business Loan Deposit Guide Australia

AUD $5k-$200k

Loan range

6 months

Trading history

AUD $5k+

Monthly revenue

24 hours

Funding possible

Business Loan Deposit Guide Australia

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 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.