Key Takeaway Table
| Key Point | Description |
|---|---|
| Benefits of commercial renovation | Renovating a commercial space can bring several benefits to a business. You can create a better layout and design. You can also remove old and potentially compromised structures and improve the safety of your space. The new and improved look of your business can attract more customers and help you gain an advantage over your competitors with improvements made. |
| Types of loans for commercial renovation | There are business loans you can get to help you renovate your space. A traditional term loan will give you a larger lump sum, while a business line of credit can give you an alternative source of funds. Fitout finance is a purpose-built loan solution that covers building costs and the soft costs of works completed. |
| Applying for Fitout Finance for Renovations | The requirements, terms, and fees may vary from lender to lender. Lenders will typically ask for quotes covering the proposed work. Some lenders will ask for documentation, while no-doc solutions are available up to $500,000 and can be approved within 48 hours. |
As a business owner, there comes a time when you realise it’s time to renovate your commercial space. After years of operation, workspaces can become outdated, degraded through foot traffic and use, impractical, or unsafe. Renovations are a great way to refresh your business premises and give it a new lease on life while also improving functionality, efficiency, and general appeal. However, the costs of a full renovation can place a high demand on capital. If you’re looking to improve your business space, a business loan for renovation can help you cover the costs.
Benefits of Commercial Renovation
Here are some reasons why a renovation is a good move for your business:
Get Better Use of Space
Renovations allow you to redesign and reconfigure your business space. You can rearrange elements to make the space more comfortable and to manage the traffic flow. Design is also a big factor. Updated aesthetics can improve the image of your business.
Health and Safety Improvements
Older commercial spaces may have issues affecting your staff and customers' health, like poor ventilation, mould, and pests. Older spaces may also have structures or wiring that no longer support your needs. A renovation can address such problems and make your business safe for everyone who enters it.
Attract More Customers
The way the premise feels impacts all of its visitors, including employees, and a renovated space can be a big attraction to customers.
Gain a Competitive Edge
Business competition can be fierce, especially in retail and foodservice. Renovations can set your business apart from your competition, thus increasing your market share.
Types of Loans for Commercial Renovation
1. Traditional Term Loans
Term loans provide a lump sum of capital that can be used for any business purpose, including renovations. Traditional loans are available at both banks and non-bank lenders. Banks usually offer better interest rates and terms but will have stricter credit criteria. Non-bank lenders can offer loans without needing documentation and can assist those with tax debt who might not be able to get assistance from a bank.
2. Equipment Financing
If your renovation project involves purchasing or replacing equipment, you may consider equipment financing. You can get faster approval since the equipment itself serves as security for the loan.
3. Business Lines of Credit
A line of credit lets you draw from a predetermined credit limit when needed. This financial tool can be useful for managing costs during different phases of the renovation. For instance, if your business has to relocate temporarily due to renovation, a line of credit can help cover the cost of the temporary space and moving there. You can also use funds to address any unexpected issues your renovation project may encounter.
4. Fitout Finance
Fitout finance is a specific loan that covers the cost of any interior improvements to a commercial space. It can cover anything from building works and soft costs.
Fitout Finance Is Purpose-Built for Commercial Renovations
Fitout Finance is a purpose-built loan solution used to transform the indoor space of old or outdated commercial spaces. It can cover a wide range of expenses, from basic installations like partitions and shelving to comprehensive design, layout, and decoration projects. The main benefit of choosing fitout finance is that it allows the renovation work to be finished upfront and then paid back over a set repayment period.
Here’s what fitout finance can help cover:
- Interior design services, layout planning, colour schemes, overall aesthetics
- Partitions, flooring, ceilings. tiling
- HVAC and ventilation
- Furniture, fixtures, and other elements
- Plumbing, wiring, networking, and other electrical elements
- Health and safety compliance, alarms, fire exits
- Signages and business branding
The requirements, terms, interest rates, and other fees for fitout financing can vary from lender to lender. Some lenders may require more documentation like your business financials and proof of creditworthiness, but there are non-bank lenders offering no doc solutions based on an assessment of business bank statements.
Get Fitout Finance For Your Commercial Renovations
Renovation is a significant step you can take to improve your business. With improved premises, your business can attract more customers, improve efficiency, and make your workplace more successful. To get a loan for renovation, apply for business loans like fitout finance.
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