Quick answer
A business fit-out can be funded with equipment finance for removable items such as kitchens and machines, an unsecured loan for smaller fit-outs, a property-secured loan for larger projects, and sometimes a landlord contribution negotiated into the lease. Because fit-outs mix assets and building work, combining sources and timing repayments to when the new space starts earning works best.
Key points
- Equipment finance suits removable items
- Unsecured loans suit smaller fit-outs
- Property-secured loans suit larger projects
- Negotiate landlord contributions before signing a lease
Why fit-outs are tricky to fund
A fit-out is a mix of things lenders view differently. Removable equipment such as ovens, espresso machines, treatment chairs and shelving can be financed as assets. Building work such as plumbing, electrical, walls, flooring and joinery is attached to someone else’s building and cannot easily be recovered by a lender. That is why fit-outs often need more than one funding source.
Equipment finance for the removable items
Anything that can be removed and resold is a candidate for equipment finance: kitchens, coolrooms, machines, furniture, point-of-sale systems. The equipment secures the loan, which helps newer businesses. See our guide on cash, loan or lease.
Unsecured loans for smaller fit-outs
For refreshes and smaller fit-outs in established businesses, an unsecured loan sized on turnover can cover building work and finishes, typically within $5,000 to $500,000 depending on the business.
Property-secured loans for larger projects
Large fit-outs, new sites and businesses with complicated credit often suit property-secured loans $20k to $5m. No valuation is needed before approval, and interest can be prepaid or added to the loan, so repayments do not start until the new space is earning.
Negotiate with the landlord
Landlords sometimes contribute to fit-outs, offer rent-free periods or fund base works, especially for new leases in vacant premises. Negotiate before signing, and get it in the lease. Also check make-good obligations at the end of the lease, which can be a significant future cost.
Plan the timing
Fit-outs often run over time and budget, and the business cannot trade fully until they are finished. Build a contingency into the budget and plan funding to cover the build period plus the first months of trading. The cash flow gap calculator helps.
Get proper quotes
Lenders want to see what they are funding. Detailed quotes from builders and suppliers, separating equipment from building work, make funding easier and help you control the budget.
Industry specifics
Cafés and restaurants need commercial kitchens and compliance. Salons and clinics need plumbing and specialised equipment. Medical and allied health fit-outs have clinical requirements. Our industry pages for cafés, salons and medical practices cover these.
An illustrative example
A physiotherapy practice moving to larger rooms needed treatment beds, gym equipment and a significant building fit-out. Equipment finance funded the beds and gym gear, the landlord contributed to base works, and a second mortgage covered the remaining building work with interest added to the balance until the new rooms were busy.
Common fit-out budget traps
Owners routinely underestimate services: electrical upgrades, exhaust and ventilation for kitchens, grease traps, hot water capacity, accessibility requirements and fire services. Council approvals and certification add time and cost. Long-lead items such as custom joinery or imported equipment can delay opening by weeks. Ask your builder to list exclusions in writing, allow a contingency, and avoid committing to an opening date or launch marketing until the critical items are confirmed. A realistic budget is the strongest basis for a funding application.
Fit-outs in existing premises
Refurbishing a space you already trade from has a different challenge: keeping income flowing during the works. Staging the job, working after hours or temporarily trading from part of the premises can protect revenue. Factor any lost trading days into the funding plan.
Plan your fit-out funding
Take a minute to enquire with your quotes and timeline. We do no credit check to talk, someone experienced reviews it, and there is no spray and pray. Fund your fit-out.
Frequently asked questions
Can I finance a fit-out with equipment finance?
Removable equipment, yes. Building work such as plumbing, walls and flooring is harder to fund that way.
Will a landlord contribute?
Sometimes, especially for new leases. Negotiate before signing.
How do I fund a fit-out before opening?
Pre-opening fit-outs are harder to fund unsecured. Equipment finance, property security or a guarantor are common.
Should I get multiple quotes?
Yes. Fit-out costs vary widely and quotes help lenders understand the project.
What about make-good obligations?
Check the lease. Make-good costs at the end of the lease should be part of your planning.
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