What Are Your Options For Financing A Fitout?

If you’re looking to fitout your business premises – like a café, office or studio – you have a number of options at your disposal.

Cash | Cash is the simplest way to pay for your fitout, but it might not be the best use of funds. If you have spare cash, this will save time and money. However, most businesses tend to need the extra cash flow for day-to-day operations.

Operating lease/Rent to buy | This financing option is a completely secured loan backed by the assets within your fitout – including fixtures, fittings, and equipment. Generally, you have the capacity to secure a loan equivalent to 30% of the soft expenses while the remaining 70% covers the more substantial costs (IT equipment, cabinetry, machinery, chattels). Typically, repayment periods for these loans range from 1 to 5 years.

Remortgage or partial remortgage | If you own real estate then you can finance a fitout from the equity in your property. This will possibly mean lower interest rates but requires you to own real estate. There are also legal implications if you are to default on the repayments.

Unsecured or semi-secured | You might also be able to secure a fitout loan against some of the items in the office, or even none at all. Unsecured finance generally attracts a higher rate compared to a secured loan. You will also likely have to pay the loan down faster.