Equipment loan · Renovation and fit-out finance
Equipment loan for Renovation and fit-out finance
Renovation and fit-out finance is funding for the works that make a commercial premises usable — joinery, services, flooring, signage and equipment — spread across the lease term rather than paid from working capital.
How an equipment loan works for Renovation and fit-out finance
Not everything in a fit-out is unrecoverable. Ovens, refrigeration, POS systems, gym equipment, treatment beds and machinery retain resale value and can be financed separately against those assets at better rates and longer terms than the building works. Splitting the project into recoverable equipment and non-recoverable works, then financing each appropriately, generally produces a lower blended cost than putting the whole project on one facility. Ask us to price both ways before you commit.
The cash-flow pattern we plan around
A single large capital outlay before the refurbished premises trade, with disruption during the works and revenue benefits arriving over the following months.
What renovation and fit-out finance typically fund
- Shop, clinic or office fit-out on a new tenancy
- Refurbishing existing premises to lift trade
- Compliance, accessibility and services upgrades
- Signage, joinery and lighting
- Equipment installed as part of the works
Equipment loan for Renovation and fit-out finance: the numbers
| Typical amounts | $5,000 – $5,000,000 |
|---|---|
| Term | 12–84 months |
| Indicative rates | 6.9% – 16% p.a. |
| Repayments | Monthly |
| Speed | Same day to 48 hours for low-doc |
| Documents renovation and fit-out finance usually need | Signed lease with term and option details · Builder or shopfitter quote and scope of works · 6–12 months of bank statements or business financials |
Rates are indicative, change without notice and depend on the lender, product, asset, term and your credit profile at the time of application. They are not an offer of finance. Comparison rates, where shown, are true only for the example given.
Key terms
Fit-out finance
Fit-out finance is lending for the non-removable works and fixtures that make a commercial tenancy operational, repaid over a term matched to the lease because the works have no resale value if the premises are vacated.
Lease term alignment
Lease term alignment is the practice of setting the finance term no longer than the remaining lease including exercisable options, so a business never pays for a fit-out in premises it has left.
What is equipment finance?
Equipment finance is any loan or lease used to acquire business equipment, with the equipment typically serving as security. The main structures in Australia are chattel mortgages, finance leases and rentals.
Low-doc equipment finance
Low-doc equipment finance approves smaller amounts (often up to $150,000–$250,000) without full financials, relying on ABN age, GST registration, credit history and sometimes a property-owner declaration.
Questions from renovation and fit-out finance
How does fit-out finance work?
The lender pays the builder and suppliers in stages against invoices as the works progress, and the loan converts to a fixed term of three to five years when the fit-out is complete, usually kept within the lease term. Movable equipment is often financed separately at a sharper rate and combined under one application.
Can I fund a renovation while the business stays open?
Yes. Fit-out finance funds staged works, and a line of credit or a short unsecured loan with a repayment holiday covers reduced trade during the works. Lenders like renovations that add capacity or lift revenue, so include the plan and the expected uplift.
Should the fit-out loan term match my lease?
Yes. Lenders usually want the fit-out repaid within the current lease term including options, and a term that ends before the lease does keeps you flexible. Negotiate the lease before the finance so the terms line up, and tell your broker the lease details when applying.
Can I renovate premises I own?
Yes. Renovations to an owned commercial property can be funded by increasing the commercial property loan, which is the cheapest route, or by a fit-out facility if you prefer to keep the property loan separate. Works that lift the property’s value support a higher loan.