What is fit-out finance?

Fit-out finance is a category of commercial funding designed to pay for internal works to business premises — including fixtures, fittings, kitchens, specialist equipment, electrical and plumbing works, signage and furniture. Typical borrowers include retailers, cafés, restaurants, bars, leisure operators and firms refitting offices or commercial units. Projects commonly start from around £10,000 and can run into the hundreds of thousands depending on scale.

Secured vs Unsecured — the simple difference

At its core the difference is security: a secured facility is backed by an asset (property, equipment or a company charge) the lender can use to recover funds if the borrower does not repay. Unsecured finance carries no lender charge over assets — approval relies on trading performance, cashflow and director creditworthiness instead.

Secured fit-out funding — what it means

Secured fit-out funding is where the loan is backed by collateral. Common forms of security for fit-outs include a charge against freehold or leasehold property, a fixed charge against high-value equipment, or a general debenture over company assets.

Advantages of secured funding:

• Larger loan amounts are typically possible (useful for full premises refurbishments or multi-site rollouts).
• Lower interest rates and longer terms are commonly available, which reduces monthly repayments and protects cashflow.
• Some lenders will consider weaker credit profiles if the security is strong.

Disadvantages:

• Valuations, solicitor work and registration of charges add cost and time to completion.
• There is a repossession risk if repayments default — the lender can enforce the security to recover outstanding debt.
• Some lenders may require insurance or other conditions tied to the secured asset.

Unsecured fit-out funding — what it means

Unsecured fit-out funding is provided without a lender taking a legal charge over property or business assets. Lenders assess applications primarily on business performance, cashflow forecasts, recent bank statements and credit histories.

Advantages of unsecured funding:

• Faster to arrange — less legal paperwork and no property valuation.
• No risk of a lender taking a legal charge over your premises or equipment.
• Simpler for smaller projects where security is not available or desirable.

Disadvantages:

• Higher interest rates and typically shorter terms than secured loans.
• Lower maximum amounts — many unsecured options are best suited to projects under £200k.
• Lenders will place more emphasis on director personal credit and business cashflow; personal guarantees may still be requested.

Key differences at a glance

When secured fit-out funding is the better option

Consider secured funding when:

• You need a substantial sum to complete a full premises fit-out or a multi-site roll-out.
• You own (or control) property or have valuable equipment to offer as security.
• You want lower monthly payments and a longer repayment term to protect cashflow.

Example: a restaurant landlord or tenant requiring £250,000 to complete a full kitchen, dining and bar fit-out may find secured finance provides the best overall cost and affordability.

When unsecured funding may be preferable

Unsecured options suit you if:

• The project is smaller and you don’t want to place a charge on property.
• You need funds quickly to start works ahead of a busy season or to meet an opportunity.
• You don’t have suitable assets to secure the loan or prefer to keep property unencumbered.

Example: a café needing £20,000 to upgrade equipment and décor before summer trading may choose an unsecured business loan or short-term facility to fund the work quickly.

How lenders and brokers decide which is suitable

Lenders and brokers assess a combination of factors:

• Project cost and the scale of work required.
• Business turnover, profitability and cashflow forecasts.
• Sector risk (hospitality and leisure are viewed differently to retail or office refurbishments).
• Existing debt levels and the directors’ credit profiles.
• Availability and value of security (property, equipment).

UK Business Loans’ role is to use the details you provide on our enquiry form to match your business with lenders or brokers who specialise in fit-out finance — so you receive relevant quotes and options to consider. Remember the enquiry form is not an application; it’s information used to find the best matches for your needs. Get Started — Free Eligibility Check

Costs and realistic expectations

Interest rates and fees (indicative)

Rates vary by lender, product and risk profile. As a rough guide:

• Secured fit-out loans: typically lower rate ranges (examples: 4%–10% APR depending on security and credit).
• Unsecured business loans: higher rates (examples: 8%–20% APR for many unsecured facilities).

Other costs to factor in for secured lending: valuation fees, legal costs for registering charges, insurance requirements and possibly arrangement fees. Always compare APR, arrangement fees and total cost of credit across offers.

Speed and documentation — what to expect

Unsecured: often minimal paperwork for smaller loans — recent bank statements, management accounts and ID. Funding can be a matter of days to a couple of weeks.

Secured: expect property or asset valuations, solicitor involvement and registration of charges — completion commonly takes several weeks and sometimes longer for complex cases.

Practical tip: prepare accurate contractor quotes, a clear project plan and recent accounts to speed up any enquiry.

Practical checklist: which option suits your business?

• Need a larger sum + you have property/equipment: consider secured.
• Need money fast + want no charge on property: consider unsecured.
• Poor business credit but strong security: secured may still be possible.
• Worry about repossession risk: discuss hybrid options with brokers (e.g., asset finance, staged funding).

How UK Business Loans helps

Our service is built to save time and increase the likelihood of finding a suitable finance route:

1. Complete a short enquiry with project value and basic business details (this is not an application).
2. We match your enquiry to lenders and brokers who specialise in fit-out finance.
3. Relevant partners contact you to discuss terms and provide quotes — you then decide whether to proceed.

There’s no obligation to accept offers. Our service is designed to put you in touch with specialists who understand fit-out projects and commercial timelines. Ready to compare options? Get Quote Now

For more general detail on fit-out funding products and providers see our dedicated resource on fit-out finance.

FAQs

Will making an enquiry affect my credit score?

Submitting an enquiry through UK Business Loans does not affect your credit score. Lenders may perform credit checks only when you proceed with an application.

Can I get fit-out finance with imperfect credit?

Possibly. Secured options are often more flexible if you can offer valuable security. Some specialist lenders work with imperfect credit profiles but may offer different terms.

How long until I get offers?

Unsecured options can produce quotes in days. Secured offers often take longer because of valuations and legal work — plan for several weeks.

Is the enquiry form an application?

No. The enquiry form collects details so we can match you with suitable lenders or brokers. It is not a commitment to borrow and does not create an agreement with a lender.