Not always, but a deposit is common and it usually helps. Some agreements can be arranged with nothing down; others require a contribution, often expressed as a number of monthly payments up front or a percentage of the asset’s cost. What is asked for depends on the lender, the asset and your circumstances.
A deposit reduces the lender’s exposure, so it tends to widen the choice of funders and can improve the terms available. It also lowers the amount you borrow, which lowers the monthly payment and the total cost of the agreement.
Lenders are more likely to want a deposit where the business is newly formed, where there is adverse credit, or where the asset is older, specialist or harder to resell. A well-established business buying a mainstream asset is more likely to be offered a low or nil deposit option.
There is a trade-off. Putting more in up front costs you cash now; putting nothing in preserves cash but means a larger balance to repay. We can show you the difference in monthly cost before you decide.