7 Ways to Finance Your Fit-Out

Financial expert informing client on ways to finance a fit-out

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Key Takeaways of How to Finance Your Fit-out

Key Point Description
Internal Funds
Using your company’s internal funds is the most straightforward way to finance your commercial or industrial fit-out. However, consider whether your cash reserves are enough for the project.
Operating Lease Agreements
Renting or rent-to-own agreements for industry-specific equipment or office furniture can be a cost-effective strategy for your fit-out.
Equipment Finance
This financing option provides funding for asset purchases like machinery and manufacturing equipment, with some solutions willing to finance a fit-out project’s soft costs, too.
Property Remortgage or Cash-out Refinancing
Accessing home equity through refinancing may provide cash for fit-outs. Second mortgages can also be an alternative for additional funding.
Secured or Unsecured Business Loans
Traditional banks and private lenders offer loans with or without the need for security, catering to different business financing needs, including funding an industrial facility or office fit-out.
Fit-out Incentives
Some landlords may offer contributions towards fit-out costs as an incentive for securing long-term commercial tenants.
Fit-out Finance
Fit-out finance is a specialised business loan for commercial fit-outs that allow for immediate project commencement, with repayment spread over a number of years.

Whether your business is on the move, expanding or simply starting, your next step is to secure a new space and customise it to suit your operational needs. While this phase is exciting, it also undoubtedly demands a considerable chunk of your working capital. In this guide, we’ll cover the different ways to finance your fit-out.

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Internal Funds

The most straightforward way to finance your new office or industrial shop fit-out is to use your company’s internal funds. You can allocate funds from your cash reserves or pool of money dedicated to future investments. But while this method grants you full control over funding your fit-out, be sure that your internal funds align with your fit-out’s scale and requirements. If you want to keep your working capital or cash reserves intact for other business expenses, consider one of the options listed below or a hybrid of using cash & other available funding methods.

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Operating Lease Agreements

Does your growing business need expensive, industry-specific equipment to operate daily? Or do you simply want to upgrade your equipment during a fit-out project to expand your operations or scale your productivity? In these arrangements, you essentially rent or (rent to own) industry-specific equipment and/or office furniture at a potentially lower cost.

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Equipment Finance

Looking for loans that are more suitable for your fit-out project? Explore equipment financing. It provides funding for asset purchases like machinery and manufacturing equipment, with some solutions willing to finance a fit-out project’s soft costs, too. Unlike operating lease agreements that are focused on letting you rent the equipment at a lower cost, equipment financing allows you to own the equipment outright and pay off the purchase over the agreed-upon loan repayment term. Some lenders may have limits on the age of assets they are willing to finance, but others do not. Make sure to find the solution that best suits your needs—whether you plan to equip your space with new or used equipment.

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Cash-out Refinancing

You can refinance your property to secure cash-out to fund your fit-out.
A second mortgage is another possible financing solution secured by property for your commercial fit-out - it’s a totally separate loan from your first or existing mortgage.

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Secured or Unsecured Business Loans

Both secured and unsecured business loans can offer adequate funding for your fit-out project. Secured business loans require an asset as security, such as property or equipment. Unsecured loans do not require business assets as security.

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Fit-out Incentives

Did you know that some landlords may be open to funding your fit-out? Some landlords offer fit-out contributions as an incentive to attract long-term commercial tenants.

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Fit-out Finance

Fit-out finance is a specialised business loan designed specifically for undertaking commercial fit-outs. This type of financing may cover both the tangible & intangible items of a fit-out project. The advantage of securing a fit-out loan over other options is that it enables the immediate completion of all necessary works, with the repayment spread over a certain period (for example, four to five years).
Be sure to engage with lending experts who specialise in fit-out finance because they understand the intricacies of the fit-out process. They can help you find lenders that offer fit-out financing solutions that can be tailored to your specific needs.

Let Us Help You Decide

At Dark Horse Financial, we have years of experience helping Australian businesses acquire the funding they need to run and grow their companies. Whether you’re seeking expert guidance in office fit-out finance or looking for specialised loans to equip your facility with industry-specific machinery, we’re here to help. 

Count on us to help you decide and pick the best method to finance your fit-out project. Speak with one of our loan experts today to get started.

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