Who needs fit-out and refurbishment finance?

Fit-out and refurbishment finance is for limited companies and incorporated businesses planning to open, upgrade or adapt premises. Typical situations include:

• New shop or pop‑up fit‑outs (display, shelving, lighting, signage)
• Restaurant refurbishments and kitchen equipment upgrades
• Office reconfigurations — open plan, new workstations, cabling
• Landlord & tenant refurbishment works or surrender/repair obligations
• Franchise rollouts requiring standardised fit‑outs
• Converting space to accommodate retail or hospitality use

Common costs covered by fit‑out finance include building and M&E works, flooring, heating/ventilation, furniture, fixtures, kitchen or bar equipment, IT/POS systems, signage, professional fees and contingency budgets.

What types of finance are used for fit‑outs?

Fit‑out projects rarely use a single product — lenders and brokers combine solutions to match project elements and cashflow needs. Below are the most common options, with practical notes on when each suits a project.

Unsecured business loans

Shorter-term, relatively quick to arrange and not secured against business property. Good for smaller refits or where security is unavailable.

• Pros: Speed, no asset security.
• Cons: Smaller amounts, higher cost than secured options.
• Typical size/term: £10k–£75k; 1–5 years.

Secured business loans & commercial mortgages

Used for larger projects where the business can offer property or other security. Suited to bigger refurbishments and landlord‑level works.

• Pros: Lower rates, longer terms.
• Cons: Valuation, legal checks and potentially personal guarantees.
• Typical size/term: £50k–£1m+; 3–15 years.

Asset finance / hire purchase

Ideal for expensive equipment — e.g. commercial ovens, refrigeration, POS or heavy catering kit. Payments spread over the life of the asset.

• Pros: Conserves working capital, finance linked to asset life.
• Cons: Asset becomes security; VAT treatment depends on structure.
• Typical size/term: £10k–£250k; 1–7 years.

Invoice finance / merchant cash advances

Used to bridge cashflow while works happen or to smooth seasonal income shortfalls during refurbishment.

Commercial refurbishment / specialist fit‑out loans

Specialist lenders and brokers provide loans tailored to project lifecycle — staged drawdowns that match contractor milestones.

Development or bridging loans

Short‑term funding where purchase plus renovation is required quickly (for a refit combined with a premises acquisition).

Example: a restaurant replacing its kitchen may use asset finance for ovens and refrigeration, while a secured refurbishment loan covers structural works and dining area upgrades.

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How lenders assess fit‑out & refurbishment funding applications

Lenders will underwrite applications against a mix of project and business factors. Key criteria include:

• Business financials: turnover, trading history and cashflow forecasts.
• Credit profile: business and director credit history.
• Project plan: detailed cost breakdown, contractor quotes, timelines and contingency.
• Premises & lease details: length of lease, break clauses and landlord permissions.
• Security available: property, plant & machinery or personal guarantees.
• Sector risk: hospitality and retail are seasonal and judged accordingly.

Practical checklist to prepare

• 12–24 months’ bank statements and management accounts
• Detailed project quotes and contractor schedules
• Lease or property documents and any landlord consents
• Existing debt schedule and monthly repayments
• Basic project cashflow forecast showing how the business will service repayments

Typical terms, rates and fees you should expect

Rates and fees depend heavily on the product, project size and credit profile. The figures below are indicative only:

• Unsecured loans: higher APRs; broad range (for example, around 10–30% APR depending on credit).
• Secured loans: lower interest, longer terms (3–15 years); expect valuation and legal fees.
• Asset finance: structured over 1–7 years; options often include maintenance or VAT deferral.
• Arrangement & valuation fees: common on secured products — read full T&Cs.

Always compare the overall cost (interest + fees), term, and security requirements. Ask lenders for APRs and a total cost figure so you can compare like-for-like.

Practical timeline — from enquiry to funds

1. Complete the short enquiry form (under 2 minutes).
2. We match you with relevant lenders or brokers — often within hours.
3. Lenders request documents and issue indicative offers — typically a few days.
4. Formal offer, legal checks and drawdown — timelines vary from a week for simple asset finance to several weeks for secured loans requiring legal work.

Complex projects (property security, landlord consents or high-value works) naturally take longer.

How to improve your chances of approval

Small steps before you apply can materially improve outcomes:

• Prepare accurate quotes and a realistic project budget (include contingency).
• Show clear trading history and up-to-date accounts.
• Reduce unnecessary short‑term borrowing where possible.
• Consider a partial deposit to reduce the loan size.
• Work with a specialist broker for hospitality or retail projects — they know which lenders will understand your risk profile.

If your credit profile is imperfect, there are lenders and brokers who specialise in higher‑risk cases — complete our free form and we’ll match you with those options.

Case studies — quick examples

1) High street shop — £40,000

Problem: refit to modernise layout and lighting. Solution: combination of unsecured loan for immediate cashflow and supplier credit for fixtures. Timeline: enquiry to funds in 7–10 days. Outcome: store opened on time with manageable repayments.

2) Independent restaurant — £120,000

Problem: kitchen replacement plus dining area redecoration. Solution: asset finance for equipment (£60k) and secured refurbishment loan for building works (£60k). Timeline: 3–6 weeks due to valuations. Outcome: improved turnover after re-opening.

3) SME office refit — £65,000

Problem: relocate and create an open‑plan workspace. Solution: commercial refurbishment loan via a specialist broker offering staged payments tied to contractor milestones. Timeline: 4–8 weeks. Outcome: modern office supporting growth.

Why use UK Business Loans to find fit‑out finance?

We don’t lend money — we connect your business with lenders and brokers who can provide the funding. Using our service lets you:

• Save time by being matched to the right lenders for your sector and project.
• Receive multiple quotes quickly so you can compare options.
• Access lenders who handle the sizes we commonly place (from around £10,000 upwards).

Ready to see options tailored to your project? Free Eligibility Check — Get Quote Now

For more information about general funding for smaller companies and other loan types, see our small business loans page on industry funding: small business loans.

How the enquiry form works

The short enquiry form asks for a few business details and the project value (it takes under two minutes). Typical fields are: business name, turnover band, time trading, project type, estimated amount, postcode and a contact name/email/phone. Submitting the form is not a loan application and does not affect your credit score — it simply lets us match you to lenders or brokers who may contact you with quotes.

Start your free eligibility check — it’s quick, free and with no obligation.

FAQs

How much can I borrow for a fit‑out?

Amounts vary: many lenders handle projects from about £10,000 up to several hundred thousand. Complete our free form and we’ll match you to lenders who work with your project size.

Will applying affect my credit score?

Submitting an enquiry through UK Business Loans does not affect your credit score. Lenders may do credit checks later if you choose to proceed with an application.

Can I fund equipment only?

Yes — asset finance and hire purchase are common for equipment-only purchases, while construction works may be funded via loans or specialist refurbishment finance.

Do I need permission from my landlord?

Often yes. Many leases require landlord consent for structural changes or major works. Include the lease and any consents in your lender pack to speed assessment.

How long does a typical application take?

Simple asset finance can complete in days; unsecured loans often take a few days to a couple of weeks. Secured refurbishment loans requiring valuations and legal work usually take several weeks.

Can businesses with imperfect credit get fit‑out finance?

Some lenders specialise in higher‑risk cases, though terms and rates will vary. We will try to match you with lenders who consider the whole business case rather than a single credit event.

Ready to get a quick, no‑obligation quote?

Tell us about your project and we’ll match you with lenders and brokers who understand fit‑out and refurbishment finance for shops, restaurants and offices. Get Started — Free Eligibility Check

• Free & no obligation
• We match you to appropriate lenders and brokers
• Quick responses — often within hours

We do not lend or give regulated financial advice. We introduce your details to lenders and brokers who may contact you with a quote.