Fit-out Finance: Can You Refinance or Consolidate Existing Debt Alongside a Fit-Out?

Summary
Yes — many UK businesses can combine fit-out funding with refinancing or consolidating existing business debt, but eligibility depends on lender appetite, security, trading performance and the type of debt you want to fold into the package. UK Business Loans helps match businesses (minimum enquiries from around £10,000) to lenders and brokers who specialise in combined fit‑out + refinance packages. Complete a quick enquiry to get matched and receive no‑obligation quotes: Get Quote Now — Free Eligibility Check.

Table of contents
– Quick answer and how this page helps you (#quick-answer)
– What “refinance” and “consolidate” mean for a fit‑out (#definitions)
– Finance products that commonly allow consolidation with a fit‑out (#products)
– Commercial term loans (#term-loans)
– Commercial mortgage / refinance (#mortgages)
– Asset & equipment finance (#asset-finance)
– Invoice finance / factoring (#invoice-finance)
– Bridging loans (#bridging)
– Business consolidation loans (#consolidation)
– Flexible cashflow facilities (#flexible-facilities)
– How lenders and brokers structure combined fit‑out + refinance deals (#how-lenders)
– Pros and cons of combining fit‑out funding and debt consolidation (#pros-cons)
– Eligibility checklist: are you likely to qualify? (#eligibility)
– How UK Business Loans helps and what to expect (#how-we-help)
– Example scenarios (mini case studies) (#case-studies)
– Costs, timescales and what to disclose (#costs-timescales)
– FAQs (#faqs)
– Next steps (#next-steps)
– Regulatory & compliance note (#compliance)
– Schema (JSON‑LD) for this page (placed at the end)

Quick answer and how this page helps you
#quick-answer
Yes — it’s often possible to refinance or consolidate existing business debt at the same time as arranging fit‑out finance. The exact route depends on:
– the nature of the existing debts (secured vs unsecured, lender charges, early repayment penalties);
– the type of fit‑out (shop/restaurant kitchen, office refurbishment, fixtures & fittings);
– security available (property equity or business assets); and
– the trading performance and cashflow of the business.

Here’s a practical guide to the options, what lenders typically require, the advantages and risks, and how UK Business Loans can quickly match you to specialist lenders and brokers. If you want an immediate check, Get Quote Now — Free Eligibility Check.

What “refinance” and “consolidate” mean for a fit‑out
#definitions
– Refinance: replacing an existing facility (for example, a short-term bridging loan or a higher‑rate business loan) with a new loan arranged at the time you borrow for the fit‑out. The new facility takes over the old one.
– Consolidate: combining multiple existing debts (overdrafts, card balances, merchant cash advances or several loans) into a single facility, often alongside new borrowing for the fit‑out.

Why businesses do it when fitting out:
– Simplify monthly repayments and remove multiple creditor relationships.
– Improve cashflow by extending term and lowering monthly payments.
– Replace expensive short-term credit with longer-term funding secured against the project or premises.
– Free up working capital for trade once high-cost debt is refinanced.

Common finance types that can include debt consolidation with a fit‑out
#products
Different lenders accept consolidation into different products. Below is a short guide to each common product and how consolidation usually works.

Commercial term loans
#term-loans
– Typical use: medium‑term funding to cover fit‑out costs, spreading the cost over 2–7 years (or longer for mortgages).
– Consolidation: many term lenders accept consolidation of unsecured business debt or other term loans, especially if there is supporting security or strong cashflow. Unsecured consolidation is harder at larger amounts.

Commercial mortgages / refinance secured property loans
#mortgages
– Typical use: larger fit‑outs or property purchases/refurbs leveraging freehold equity or long leaseholds.
– Consolidation: a refinance of a commercial mortgage can roll other secured borrowing into the new mortgage, subject to lender valuation, loan‑to‑value limits and any covenant terms. Landlord and charge considerations for leasehold properties are important.

Asset & equipment finance (including FFE)
#asset-finance
– Typical use: furniture, fixtures, fittings, kitchen equipment.
– Consolidation: asset finance generally funds specific assets and won’t absorb unrelated unsecured debts — but it can be packaged with a separate consolidation facility arranged by a broker.

Invoice finance / factoring
#invoice-finance
– Typical use: to unlock working capital from outstanding invoices.
– Consolidation: invoice finance is normally a working capital product rather than a consolidation vehicle, but it can be used to improve cashflow while another facility repays expensive short-term debts.

Bridging loans
#bridging
– Typical use: short-term funding to complete works quickly pending longer-term finance.
– Consolidation: bridging facility can temporarily clear debts and complete a fit‑out, with a plan to refinance the bridging loan into a longer-term fit‑out loan that consolidates the remaining debts.

Business consolidation loans / debt consolidation commercial loans
#consolidation
– Typical use: single loans designed to consolidate multiple business debts.
– Consolidation: many lenders specialise in consolidation and will combine this with fit‑out funding where the combined facility fits their lending criteria.

Merchant cash advances and flexible cashflow facilities
#flexible-facilities
– Typical use: flexible or revenue‑linked funding to support seasonal businesses.
– Consolidation: merchant cash advances are often expensive and sometimes have early repayment penalties; some brokers can negotiate settlement within a new finance package, but flexibility varies by lender.

How lenders and brokers handle combined fit‑out + refinance packages
#how-lenders
Here’s how the process usually works when consolidating or refinancing alongside a fit‑out:
– Initial eligibility check: lenders/brokers review turnover, recent accounts, requested amount (minimum enquiries usually start from around £10,000), and purpose (fit‑out + consolidation).
– Assessment of existing liabilities: they’ll need statements for overdrafts, loans, credit cards, MCA agreements and any charged balances.
– Security and valuation: if you propose to use property or significant business assets as security, the lender will value these and check LTV (loan‑to‑value) limits.
– Affordability and covenants: lenders run affordability using management accounts and cashflow forecasts; existing covenants or charges on assets can restrict consolidation.
– Structuring: some lenders offer one combined facility that funds the fit‑out and repays other debts; others provide a two-stage approach — short-term funds for the project and a separate consolidation product later.
– Documentation & timing: expect management accounts, bank statements, fit‑out supplier quotes, and any lease or title documents. Turnaround can be from a few days for simple unsecured deals to several weeks for secured mortgages.

Pros and cons of refinancing/consolidating debt with a fit‑out
#pros-cons
Pros
– One monthly payment simplifies bookkeeping.
– Potentially lower overall monthly cost if you extend the term or secure a lower rate.
– Frees up working capital by removing expensive short-term facilities.
– Easier to manage supplier payments for the fit‑out from a dedicated facility.

Cons
– Extending repayment term can increase total interest paid.
– You may need to offer security (property or assets) or sign personal guarantees.
– Arrangement, valuation and legal fees can be significant.
– Early repayment charges may apply on existing loans — factor these into the decision.
– Combining debts can reduce future borrowing flexibility if you use up security or equity.

A practical tip: always compare total cost of ownership (interest + arrangement + legal fees + early repayment charges) across multiple quotes rather than focusing on headline rates.

Eligibility checklist — is combining fit‑out and consolidation right for you?
#eligibility
Quick checklist:
– Trading history and turnover: lenders typically prefer at least 12–24 months of trading and evidence of stable turnover.
– Profitability or clear cashflow plan: profitability improves options; otherwise a robust cashflow forecast is essential.
– Security: do you have freehold equity, favourable lease terms, or assets to secure against?
– Existing charges: can existing secured lenders be repaid or subordinated?
– Size of funds: UK Business Loans commonly handles enquiries from around £10,000 upwards — larger packages open more lender options.
– Complexity: high complexity (multiple secured lenders, county court judgments) will lengthen the process.

If you match most of these, you should Get Quote Now — Free Eligibility Check to see realistic options.

How UK Business Loans can help: our role and what to expect
#how-we-help
UK Business Loans is an introducer that connects businesses with specialist lenders and brokers who can assess combined fit‑out and consolidation requests. We do not lend money or give regulated financial advice — we match your enquiry to the most relevant partners who will provide quotes.

What to expect:
1. Complete our short form (under 2 minutes): include the amount you need and whether you want consolidation included.
2. We match you with lenders/brokers who understand fit‑outs and business consolidations.
3. Expect a quick response from a specialist who can provide indicative quotes and next steps.
4. Compare offers and decide — there’s no obligation to proceed.

Start here: Get Quote Now — Free Eligibility Check.

Example scenarios / mini case studies
#case-studies
Scenario A — Retail refit + overdraft consolidation
A multi-site retailer needs £80,000 for shop refits and has a sizeable overdraft. A secured term loan backed by freehold equity consolidated the overdraft and funded the fit‑outs, reducing monthly interest and simplifying repayments.

Scenario B — Café replaces bridging loan
A café used a short-term bridging loan to open quickly and now needs a full fit‑out plus longer-term stability. The broker arranged a bridging-to-term refinance: bridging repaid at drawdown, then a term facility covered the fit‑out and consolidated remaining short-term credit.

Costs, timescales and what to disclose
#costs-timescales
Typical costs
– Arrangement fees: 0.5%–3% (varies by lender).
– Legal and valuation fees: depend on security and property value.
– Early repayment charges: check existing contracts.
– Interest rates: vary by product, security and credit profile.

Typical timescales
– Initial quotes: often within hours to 48 hours.
– Simple unsecured deals: 1–2 weeks to fund.
– Secured mortgages or complex consolidations: 4–8+ weeks (valuations, legal searches and subordination take time).

What to disclose
– Provide full statements for existing loans, overdrafts and merchant facilities.
– Be upfront about any CCJs, defaults or litigation — non-disclosure can cause an offer to be withdrawn.

Ready to compare options? Get Quote Now — Free Eligibility Check.

FAQs
#faqs
Q: Can I consolidate personal debts into a business fit‑out loan?
A: Lenders generally expect consolidation to cover business debts. Personal debts can complicate underwriting and are often not accepted unless formalised via personal guarantees; always check with a specialist broker.

Q: Will a consolidated fit‑out loan affect my credit score?
A: Submitting an initial enquiry through UK Business Loans does not usually affect your credit score. Lenders may carry out credit checks later in the process which could impact scores.

Q: Do leasehold premises qualify as security?
A: Leasehold can be acceptable but depends on remaining lease term, landlord consent and any existing lease covenants. Freehold is usually simpler for lenders.

Q: Can a start-up refinance existing debts with fit‑out funding?
A: Start‑ups face a tougher market — many lenders prefer trading history. Specialist lenders or brokers may still provide options if there’s a strong business plan and security.

Q: What documents do I need for a quote?
A: Recent management accounts, business bank statements, up-to-date fit‑out quotes/invoices, and statements for any existing debts.

Q: How quickly will I hear back after submitting an enquiry?
A: Usually within a few hours during business hours; complex enquiries may take longer.

Next steps — get matched and compare quotes
#next-steps
If you’re planning a fit‑out and want to refinance or consolidate existing debt, the fastest way to see real options is to complete our short enquiry form. We’ll match you to lenders/brokers experienced in combined packages and deliver no‑obligation quotes.

Get Quote Now — Free Eligibility Check

Images (suggestions for the page)
– Image 1: Retail shop fit‑out being completed — alt text: “Retail shop fit-out being completed — finance for retail fit-outs”
– Image 2: Business owner reviewing loan quotes with an adviser — alt text: “Business owner reviewing fit‑out loan quotes — debt consolidation for fit‑outs”
– Image 3: Café refurbishment — alt text: “Cafe fit-out finance and debt consolidation example”

Single related resource
If you want a deeper read specifically about financing fit‑outs, see our detailed fit‑out finance guide here: fit‑out finance.

Regulatory & compliance note
#compliance
UK Business Loans is an introducer. We do not lend money or provide regulated financial advice. Submitting an enquiry is free and not an application — lenders or brokers will make the actual offers and may carry out credit checks if you proceed.

Schema (JSON‑LD)
Place the following JSON‑LD in the page head or immediately before the closing tag.

One last word
If you’re planning a refurbishment and juggling multiple debts, getting a quick eligibility check is the fastest way to see whether consolidation with a fit‑out makes financial sense. Our short form matches you to the specialists most likely to help — Get Quote Now — Free Eligibility Check.1) Can I refinance or consolidate existing debt when arranging fit‑out finance?
Yes — many UK lenders and brokers offer combined fit‑out + refinance/consolidation packages, subject to trading performance, security and the type of debts you want to roll up.

2) What types of finance commonly allow consolidation with a fit‑out?
Common options include commercial term loans, commercial mortgage refinance, specialist consolidation loans and bridgings-to-term packages, while asset finance and invoice finance are less commonly used to absorb unrelated unsecured debt.

3) How much can I borrow for a combined fit‑out and consolidation package?
Packages typically start from around £10,000 and can extend to much larger sums depending on lender appetite, security and your business’s turnover.

4) Will consolidating fit‑out finance with other debts reduce my overall cost?
It can reduce monthly payments or replace high‑cost short‑term credit, but extending terms or adding fees may increase total interest paid so compare total cost of ownership across quotes.

5) What security do lenders usually require for combined fit‑out and refinancing deals?
Lenders commonly look for freehold/leasehold equity, business assets or personal guarantees, with security needs varying by product and loan size.

6) Can leasehold premises be used as security for a fit‑out refinance?
Yes — leasehold security is possible but depends on remaining lease term, landlord consent and any existing covenants or charges.

7) How long does it typically take to arrange fit‑out finance with consolidation?
Expect initial quotes within hours to 48 hours, simple unsecured deals in 1–2 weeks and secured or complex consolidations in 4–8+ weeks due to valuations and legal work.

8) What documents will lenders need for a quote that includes consolidation?
Prepare recent management accounts, business bank statements, detailed fit‑out quotes/invoices and full statements for any existing loans, overdrafts or merchant facilities.

9) Will submitting an enquiry through UK Business Loans affect my credit score?
No — submitting an initial enquiry to UK Business Loans will not normally affect your credit score, though lenders may carry out credit checks later in the application process.

10) Does UK Business Loans provide the funding or regulated financial advice?
No — UK Business Loans is an introducer that matches you to FCA‑regulated lenders and brokers who will provide quotes and regulated advice where applicable.