# How much deposit do I need for equipment finance? > How much deposit NZ tradies need for tools and plant finance — typical ranges by trading history and how the gear's resale value drives the number. Source: https://tradiefinance.co.nz/help/how-much-deposit-for-equipment-finance Published: 2026-05-13T08:00:00.000Z Category: equipment-and-plant Tags: faq, equipment-and-plant Image: https://tradiefinance.co.nz/images/resources/generated/tradie/faq/how-much-deposit-for-equipment-finance-primary.jpg Image alt: Plant and specialist trade equipment representing How much deposit do I need for equipment finance? --- There's no single number. Deposit on equipment finance comes down to two things: how long your business has been trading, and how well the gear holds its value if the lender ever has to resell it. Get both working in your favour and you might put nothing down. Get neither and you're looking at 20–30%. ## The two levers that set your deposit A [deposit](/glossary/deposit) is the slice you pay up front so the lender isn't financing the full price. On a [chattel mortgage](/glossary/chattel-mortgage) the equipment itself is the security, so the lender keeps asking one quiet question: if this deal goes bad, what's the gear worth secondhand? That's why equipment is trickier than vehicles. A common work ute has a deep resale market — a thousand buyers. A specialist concrete saw or niche CNC machine has a thin market, so the lender's security is softer and they tend to want more skin in the game. (Chasing a van or ute instead? See [do I need a deposit for a work van](/help/do-i-need-deposit-for-work-van) — those numbers are usually friendlier.) ## Typical deposit ranges by profile These are rough patterns we see across our lender panel, not offers — we confirm the actual ask once we've seen the gear and your books. | Your situation | Asset type | Typical deposit | |---|---|---| | Established (12+ months, GST-registered, clean financials) | Common, good-resale plant (compressors, generators, trailers) | 0–10% | | Established | Niche or fast-depreciating gear | 10–20% | | Newer business (under 12 months) | Common plant | 15–25% | | Newer business | Niche or specialist gear | 20–30%+ | | Bad credit or thin history | Most equipment | Case by case, often 20%+ | Notice the pattern: the same compressor might need nothing down for a five-year-old plumbing company and 20% for a sparkie six months into self-employment. The gear didn't change — the lender's confidence in the business did. ## Resale value matters more than you'd think Two pieces of $30,000 gear can attract very different deposits: - A **skid-steer or trailer** holds value, sells fast, has clear market pricing. Lenders lend hard against it. - **Highly specialised gear** worth a fraction secondhand the day you plug it in — lenders want a bigger buffer, because they can't recover much on repossession. If the equipment loses value quickly, a slightly bigger deposit often unlocks more lenders and a better total cost. You're closing the gap between what's owed and what the gear's worth — exactly the gap a lender frets about. ## What counts as deposit - Cash from the business or shareholder funds. - Trade-in value of gear you're replacing. - Equity in an unfinanced asset you're selling separately. What doesn't count: borrowing the deposit elsewhere. Lenders look at all your commitments together, so a second loan to cover the deposit usually shows up and works against you. ## Don't forget the GST angle If you're [GST-registered](/glossary/gst-registration), the GST you claim back on a GST-inclusive purchase (the 3/23 rule) acts like an automatic deposit on the cashflow side — money back in your next return even if you financed 100%. It doesn't reduce what the lender wants up front, but it softens the real cash cost. Depreciation is a separate matter from the loan, and thresholds shift, so always confirm GST and depreciation treatment with your accountant or IRD. For the full picture on funding tools and machinery — what's fundable, terms, and structure — read the [plant and equipment finance guide](/guides/plant-and-equipment-finance-guide), and if you're weighing whether your gear even qualifies, [can I finance tools and equipment](/help/can-i-finance-tools-and-equipment) covers it. Paying it down faster later? See [can I pay off tradie finance early](/help/can-i-pay-off-tradie-finance-early). The honest answer is that your deposit depends on your gear and your books, and a five-minute look at both tells us far more than any table can. As a broker, we're not the lender — we place your application across our panel and find the structure that asks the least of you up front. [Book a call](/book-a-call) or reach out via [help](/help) and we'll size it up — no pressure, no obligation.