Fit-out finance · Renovation and fit-out finance
Fit-out finance 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 fit-out finance works for Renovation and fit-out finance
This is the purpose-built structure. Fit-out finance funds the whole scope — building works, joinery, services, flooring, signage and installed equipment — as a single facility repaid across the lease term, and it is assessed on your trading rather than on assets that have no resale value. Staged drawdowns matched to the builder’s progress claims are usually available, which keeps you from paying interest on funds sitting idle. Bring the signed lease and the full scope of works to the first conversation.
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
Fit-out finance for Renovation and fit-out finance: the numbers
| Typical amounts | $20,000 – $1,500,000 |
|---|---|
| Term | 12–60 months |
| Indicative rates | 9.5% – 22% p.a. |
| Repayments | Monthly |
| Speed | 3–10 business days |
| 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 fit-out finance?
Fit-out finance is business lending used to fund the construction or refurbishment of commercial premises, including joinery, flooring, lighting, signage and the equipment installed. It typically combines secured equipment finance with an unsecured component for fixed works.
Can leasehold improvements be financed?
Yes, but usually not as secured equipment finance, because fixed improvements attach to a building the borrower does not own. Lenders fund them through unsecured facilities or specialist fit-out products, priced above standard asset finance.
How does a lease term affect fit-out finance?
Lenders will not normally amortise fit-out debt beyond the remaining term of the premises lease, including exercisable options. A five-year lease generally means a fit-out loan of five years or less.
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.