Shop fit-out finance for retailers: How to fund refurbishments and rebrands

Summary — Shop fit-out finance helps retailers pay for fixtures, signage, lighting, flooring, POS systems and leasehold improvements without using all available cash. Options include specialist fit‑out loans, asset finance, hire purchase, commercial loans, bridging and short‑term cashflow products. Choose the solution that matches project size, speed required and security available. Get a Free Eligibility Check to compare fast quotes from lenders and brokers: Get Quote Now — Free Eligibility Check

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What is shop fit‑out finance?

Shop fit‑out finance is funding specifically used to deliver a shop’s interior and exterior works so the space is ready for trading. “Fit‑out” can be as simple as new shelving and signage or as complex as full rebrands and leasehold improvements. Typical fit‑out elements include:

• Fixtures & fittings (shelving, display units, joinery)
• Lighting, flooring and decoration
• Shopfronts and external signage
• Point of sale (POS) systems and tills
• Refrigeration and specialist equipment for food retailers
• HVAC, security systems and electrical works
• Structural or leasehold improvements (where permitted)

Fit‑out finance can cover cosmetic rebrands (paint, signage, new layout) and more substantial structural changes (new partitions, plumbing, kitchen equipment). The right product depends on whether items are classed as movable assets, require landlord consent, or form part of long‑term leasehold improvements.

Why retailers use fit‑out finance

Retailers use fit‑out finance to fund projects without tying up working capital. Key benefits:

• Preserve cashflow: Keep funds for stock, payroll and marketing rather than paying large upfront costs.
• Speed: Finance can accelerate openings or rebrands so you don’t miss trading opportunities.
• Scale: Roll out refurbishment across multiple sites using staged finance.
• Match repayments to revenue: Structure repayments to align with trading cycles.
• Tax timing: Some funded purchases may be eligible for capital allowances—speak to your accountant.

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Typical costs & examples

Costs vary widely by size, location and specification. Use these ranges as rough guidance (illustrative only):

• Small boutique or pop‑up: £10,000–£30,000
• Independent high‑street shop refit: £30,000–£150,000
• High‑end flagship store or major rebrand: £150,000–£500,000+
• Multi‑site rollouts: scale costs multiply; lenders will look at portfolio and staging options

Mini case studies (illustrative):

• Clothing boutique: £25k refit — funded via a 3‑year unsecured business loan for £20k plus £5k upfront from owner; monthly repayments aligned to projected sales uplift.
• Independent café: £60k including kitchen works — funded through asset finance for kitchen equipment and a secured fit‑out loan for leasehold improvements; staged draws to match contractor milestones.

Example monthly cost (illustrative): borrowing £50,000 over 3 years at 8% pa (fixed) with capital & interest would give approximate monthly repayments of around £1,570. Rates and terms vary by lender and security.

Types of finance that fund shop fit‑outs

There’s no one-size-fits-all. Common options include:

Specialist fit‑out loans

Designed specifically for refurbishment and rebrand projects. Typically medium-term (2–7 years). Lenders assess project value and may take a charge over business assets or property. Cost: low–medium depending on security and credit profile.

Asset finance / hire purchase / leasing

Good for POS systems, refrigeration, joinery and specialist equipment where items can be treated as assets. You acquire the asset over time (hire purchase) or rent it (finance lease). Speed: medium. Security: asset-based.

Business loans (secured & unsecured)

Unsecured loans are faster but limited in size and higher cost. Secured loans (charge against property or company assets) can offer larger amounts and lower rates but take longer to arrange.

Commercial mortgages / owner‑occupied funding

If you own premises or are buying and funding simultaneously, mortgage lending or refurbishment‑backed facilities can be used to finance fit‑outs as part of a property deal.

Invoice finance / bridging finance

Useful for short‑term cashflow to bridge contractor payments or to fund a fast opening. Bridging is quick but more expensive; invoice finance unlocks cash tied up in unpaid invoices.

Revenue‑based finance / merchant cash advance

Fast access to funds repaid from a percentage of card takings. Convenient for retailers with strong card sales but typically higher cost.

Supplier / vendor finance

Fit‑out contractors or equipment suppliers sometimes offer staged payment plans or supplier credit, reducing upfront cash required.

Grants & local funding

Local authorities, Business Improvement Districts (BIDs) or sector grants occasionally support shopfront improvements—check gov.uk and local council schemes.

For each option consider: speed to funds, typical term, security required and cost level (low/medium/high).

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How lenders assess fit‑out finance applications

Lenders typically evaluate:

• Trading history and turnover (lenders usually prefer established businesses)
• Credit profile of the business and directors
• Length and terms of the lease (remaining term and landlord consent)
• Detailed cost estimates and supplier quotes
• Projected sales uplift from the refit/rebrand
• Security available (assets, property, personal guarantees)

Tips to improve approval odds: provide clear contractor quotes, photos, landlord consent (if leasehold), and realistic sales forecasts.

Documents you’ll typically need

• Recent business bank statements (usually 3–6 months)
• Company accounts (2–3 years if available) or management accounts
• Director ID & proof of address
• Lease agreement and evidence of landlord consent for alterations
• Detailed contractor and supplier quotes
• Business plan or project summary for larger projects

Repayment options, rates and tax considerations

Repayment profiles vary: fixed‑rate repayment (capital & interest), interest‑only periods, balloon payments at the end of the term, or revenue‑linked repayments for merchant cash advances. Rates depend on product, term, security and credit profile.

Tax: some fit‑out items may qualify for capital allowances or business expense treatment—seek advice from an accountant. This page is for educational purposes only and not tax advice.

Pros & cons (quick decision aid)

Choosing the right finance partner (and how UK Business Loans helps)

Choosing a lender or broker who understands retail fit‑outs matters. UK Business Loans acts as an introducer that matches your enquiry to lenders and brokers specialising in retail fit‑outs — saving time and improving the chance of a suitable offer. Our quick enquiry takes around 2 minutes and is free and no obligation.

Typical process:

1. Complete a short enquiry form with project details and amount required.
2. We match you to the most relevant lenders/brokers who can help.
3. A partner will contact you to discuss options and collect documents.
4. Compare quotes and choose the solution that fits your business.

We organise loans from roughly £10,000 upwards and can support single‑site and multi‑site projects. For more on retail funding options see our retailers hub: retailers shop business loans.

Legal & privacy note: UK Business Loans is an introducer (we do not lend). We do not provide regulated financial advice. We match your enquiry with vetted lenders and brokers. Completing this enquiry is free and won’t affect your credit score. Lenders may perform credit checks if you progress to an application.

Information on this page is for educational purposes. Offers, rates and terms will vary by lender and by business circumstances. Always check lender terms and consider independent professional advice where appropriate.

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FAQs

Will applying for a fit‑out finance quote affect my credit score?

Submitting an enquiry via UK Business Loans will not affect your credit score. Lenders may perform credit checks only if you proceed with a full application.

Can I finance shopfront signage or only interior works?

Signage, POS systems and both interior and exterior works are commonly fundable. Eligibility depends on the lender and whether items qualify as assets.

Do I need landlord consent?

Usually yes for leasehold improvements. Obtain written consent from your landlord before starting structural or permanent works — lenders will typically ask for evidence.

How long does fit‑out finance take to arrange?

Timescales vary: merchant cash advances and some unsecured products can be arranged in days; secured or larger facilities typically take 2–6 weeks.

Can newer retailers or start‑ups get fit‑out finance?

Yes — specialist lenders and brokers may support newer businesses, though terms may include higher rates, additional security or shorter terms. We can match you to partners who work with earlier-stage retailers.

Is it cheaper to pay cash?

Paying cash removes finance costs, but may deplete working capital. Financing spreads the cost and preserves cash for stock and trading; which is cheaper depends on opportunity cost and your business priorities.

Ready to explore finance options for your refurbishment or rebrand? Start your Free Eligibility Check — quick, no obligation. We’ll match you to lenders and brokers who can provide tailored quotes.

1. What is shop fit‑out finance and how can it help my retail business? — Shop fit‑out finance is specialised funding for refurbishments and rebrands (fixtures, signage, POS, leasehold improvements) that lets retailers spread costs and preserve working capital while upgrading premises.

2. How much does a typical shop refit cost and how much can I borrow? — Typical refits range from about £10,000 for small boutiques or pop‑ups to £150,000+ for larger stores or flagship rebrands, and lenders can offer fit‑out loans from roughly £10k up to several hundred thousand depending on security and your business profile.

3. Which finance types are best for retail fit‑outs (asset finance, hire purchase, unsecured loans)? — Asset finance or hire purchase suits equipment and POS where the item can secure the deal, specialist fit‑out loans cover leasehold works and larger projects, while unsecured loans are faster but generally smaller and more expensive.

4. Do I need landlord consent for leasehold improvements and will lenders require it? — Yes — written landlord consent is usually required for structural or permanent leasehold improvements and lenders will typically ask for evidence before approving fit‑out finance.

5. How long does it take to arrange shop fit‑out finance? — Timescales vary from a few days for merchant cash advances or some unsecured products to 2–6 weeks (or longer) for secured fit‑out loans and larger facilities.

6. Will submitting an enquiry via UK Business Loans affect my credit score? — No — completing UK Business Loans’ free eligibility enquiry will not affect your credit score, although partner lenders may carry out credit checks if you progress to a full application.

7. Can start‑ups or retailers with limited trading history get fit‑out finance? — Yes — specialist lenders and brokers work with newer retailers and start‑ups, but they may offer higher rates, require additional security or shorter terms based on risk.

8. What documents will lenders typically ask for when applying for fit‑out funding? — Lenders commonly request recent business bank statements (3–6 months), company accounts or management accounts, director ID and proof of address, lease agreements (and landlord consent), plus detailed contractor quotes and a project summary for larger jobs.

9. How do repayments, rates and tax treatment work for fit‑out finance? — Repayment profiles vary (capital & interest, interest‑only, balloon or revenue‑linked), rates depend on product, term and security, and some fit‑out items may qualify for capital allowances so you should confirm treatment with your accountant.

10. How can UK Business Loans help me compare fit‑out loan quotes and find the right lender? — UK Business Loans is a free introducer that matches your enquiry to vetted UK lenders and brokers specialising in retail fit‑outs so you can receive and compare tailored quotes quickly and with no obligation.