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Over 70% of Australian businesses rely on external finance to grow, purchase equipment, or seize new opportunities. So if you’re wondering “how much deposit do I need for a business loan in Australia?”, you’re in good company.
The truth is, what you’ll need upfront depends heavily on who you borrow from. Traditional banks tend to have stricter rules and require larger deposits. Private lenders like Marway Capital, on the other hand, are more flexible when it comes to rules and deposits.
Let’s break it down.
The Business Loan Options: Private Lenders vs. Traditional Banks
Before we dive into how much deposit you’ll need, let’s take a quick look at the two main options for business finance in Australia.
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Private Lenders
These are non-bank lenders who offer faster, more flexible funding. They’re ideal when time is critical, when you don’t meet strict bank criteria, or when you need creative deal structuring. Private lenders are typically more focused on the value of the deal than just paperwork. -
Traditional Banks
Banks take a conservative, policy-driven approach. If you’ve got spotless financials and plenty of time, they might offer sharp interest rates. But the process is usually slower, stricter, and comes with higher deposit requirements.
How Much Deposit Do I Need For a Business Loan in Australia?
Now let’s go deeper into how deposit requirements differ between trditional banks and private lenders, and what that means for you.
Traditional Bank
If you’re applying for a business loan through a traditional bank, you’ll need to contribute 20% to 30% of the loan amount upfront. This is particularly true for secured loans like commercial property finance or equipment loans.
Banks are typically risk-averse. They assess loan applications based on:
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2–3 years of financial statements
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A strong credit history
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Cash flow and profit stability
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The industry you’re in
Even if your numbers are solid, you’ll still be expected to make a significant contribution toward the purchase or project. This deposit reduces the bank’s exposure and shows that you have “skin in the game.”
For new businesses or borrowers with less-than-perfect credit, banks may either:
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Ask for a larger deposit, or
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Decline the loan entirely
It’s also worth noting that the process with banks can take weeks, sometimes longer, especially if you’re waiting on approvals from a credit team or external valuer.
Private Lender: Marway Capital
At Marway Capital, we know that not every business fits neatly into a box. We take a flexible approach to deposits and focus on how we can get the deal across the line.
In most cases, our clients contribute somewhere between 10% and 15%, depending on the asset, risk profile, and deal structure. But we’ve also funded deals with:
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Less than 10% deposit
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No deposit at all, when there’s strong security or a clear exit strategy
We don’t get hung up on your tax returns or credit score. Instead, we look at:
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The strength of the asset (if secured)
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The urgency of the opportunity
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Your broader business story
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What’s needed to make it happen
Because we’re a private lender, we’re not bound by rigid policy. That means we can often approve and fund loans much faster than a bank, with terms that actually work for your situation.
Other Factors That Affect the Deposit Required for a Business Loan
When we talk to business owners about how much deposit they need, there’s no single answer. While your lender plays a big role, there are several other things that influence how much you’ll need to contribute upfront.
➤ The type of loan matters.
Loans secured against property often require a larger deposit, typically around 20% or more. Equipment finance or working capital loans, on the other hand, might allow for a smaller contribution, especially if the asset being financed holds its value well.
➤ Your business’s age and financial health
If your business has a solid track record, consistent income, and clean books, lenders are more likely to offer better terms with a lower deposit.
But if you’re just starting out or have patchy financials, you may need to contribute more to show commitment.
➤ Credit history still plays a role.
A strong credit score can work in your favour, while a history of missed payments or ATO debt might increase the deposit required. That said, while banks just look at your past, private lenders are more interested in where your business is headed.
➤ The asset or security you offer is critical.
If you’re offering a valuable asset, like a property or vehicle, it can offset the need for a big deposit. In some cases, we’ve structured loans where no cash deposit was needed at all, simply because the security stacked up.
➤ Your industry and risk profile also matter.
Some industries are seen as riskier by lenders. If you’re in hospitality, construction, or a new tech space, you might be asked to contribute more upfront. But we don’t judge a book by its cover, if your opportunity makes sense, we’ll find a way to back it.
Can I Get a Business Loan Without a Deposit in Australia?
The short answer is, yes, it’s possible to get a business loan without a deposit in Australia. But it depends on the lender, the deal, and your overall situation.
With banks, it’s extremely rare. Most will insist on a sizeable deposit upfront, especially if you’re buying property or equipment. They want to see cash in the deal to reduce their risk, and if you don’t have it, they’re likely to say no.
But with private lenders like us at Marway Capital, we take a more flexible approach.
We’ve helped clients secure business loans with little and no deposit, especially when:
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They had equity in another property
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There was a clear exit strategy (like a refinance or sale)
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The asset being financed had strong value
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The business had consistent cash flow
We’re not here to make things harder; we’re here to find a way forward. If the opportunity is strong and you’ve got a realistic plan, we’re open to structuring a deal that works without needing a large deposit upfront.
So if you’re asking yourself can I get a business loan without a deposit in Australia, the answer is: with the right lender, absolutely.
FAQs: How Much Deposit Do I Need For a Business Loan in Australia
What is the minimum down payment for a business loan?
It’s not a one-size-fits-all all. Most traditional lenders in Australia will ask for a 20 – 30% deposit, sometimes more, depending on the risk. Private lenders like us at Marway Capital are more flexible. We often work with clients who only have a 10% deposit, and in some cases, we can even fund deals with zero upfront contribution if the asset or security is strong.
Is it hard to get a business loan in Australia?
It can be, especially through the banks. They tend to have strict requirements around financials, credit history, and documentation. But that’s exactly why private lenders exist. They offer fast, practical funding solutions for business owners who need to move quickly or don’t tick every box on paper.
How to get a business loan with no deposit in Australia?
You’ll need a lender who’s open to creative structuring. At Marway, we may approve no-deposit loans if you have other strengths, like equity in a property, strong projected cash flow, or a clear plan for repayment. It all comes down to the deal.
What is the lowest rate business loan you can get?
Banks usually advertise the lowest rates, but those offers come with strict eligibility criteria. Private lenders have slightly higher rates, but the trade-off is speed, flexibility, and access when the banks say no. We’re always upfront about pricing and will only offer you a solution if we know it makes sense for your situation.
Contact your bank or private lender to get update rates.
What is the lowest credit score you can have to get a business loan?
You’ll typically need a credit score of at least 600–650 to be considered by a bank, but there’s no fixed number with private lenders.
We’ve helped clients with defaults, ATO debt, and low credit scores secure funding. If your business shows promise and the deal stacks up, we’ll find a way.
What is the maximum loan amount for a business loan without financials?
Banks in Australia won’t offer business loans without financials.
At Marway Capital, we’ve funded business loans of up to $2 million without requiring full financials, depending on the strength of the security and the overall structure of the deal. If the asset is strong and the exit strategy is clear, we can often move forward quickly.
*Conditions Apply. For company borrowers with ACN for business purposes*
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