Fund the build, not just the equipment
Fit-out finance for shops, cafés, clinics and offices.
Split the removable equipment from the fixed works and fund each at the right price. Your broker explains what a lender will and will not secure against.
What is a fit-out finance?
Fit-out finance is lending used to build or refurbish a commercial premises — shopfronts, cafés, clinics, gyms, offices and warehouses — covering joinery, flooring, lighting, signage, plumbing and the equipment installed. Because much of a fit-out cannot be repossessed, lenders assess it more like unsecured lending than standard equipment finance.
A fit-out is really two purchases wearing one invoice. There is removable, serial-numbered equipment — the espresso machine, cool room, ovens, dental chair, POS terminals, gym gear — which lenders will secure against at normal asset finance rates. And there is the fixed work: shopfitting, joinery, flooring, ceilings, electrical and plumbing, which becomes part of a building the borrower usually does not own and cannot be recovered.
Splitting the invoice accordingly is where a broker earns their keep. Financing $120,000 of a $200,000 fit-out as secured equipment and only the $80,000 remainder as unsecured lending produces a materially lower blended cost than putting the whole amount on a short-term unsecured loan. Some specialist lenders will fund a complete fit-out as one facility, and that convenience is worth comparing against the split structure in dollars.
Timing is the other constraint. Fit-outs run over weeks with progress payments to builders and suppliers, so staged drawdowns are often needed, and the remaining term on the premises lease caps how long a lender will amortise the debt. Get the lease term confirmed before the fit-out is designed, not after the quotes arrive.
Fit-out finance at a glance
| Amount | $20,000 – $1,500,000 |
|---|---|
| Term | 12–60 months |
| Rate type | Fixed or variable |
| Indicative rates (Q3 2026) | 9.5% – 22% p.a. · see rate history |
| Security | Secured by the asset |
| Repayments | Monthly |
| Typical speed | 3–10 business days |
| Best for | Hospitality, retail, healthcare and fitness businesses building or refurbishing a site |
| Consider something else if | Short-term pop-ups or premises with under two years of lease remaining |
| Tax | Depreciation on plant and capital works deductions on fit-out are treated differently. Confirm with your accountant. |
Advantages
- Preserves cash for stock, staffing and opening costs
- Equipment portion funded at secured rates
- Staged drawdowns can match builder progress payments
Trade-offs
- Fixed works are effectively unsecured and priced higher
- Loan term is limited by the remaining lease
- Cost overruns are common and rarely funded after approval
How to apply for a fit-out finance
- 01
Split the quote
Separate removable, serial-numbered equipment from fixed leasehold improvements across every supplier quote.
- 02
Structure the funding
Your broker funds the equipment as secured asset finance and the balance through the cheapest available unsecured option.
- 03
Draw against progress
Funds are released as builder and supplier invoices fall due through the build.
Documents lenders commonly ask for
- Itemised builder and supplier quotes
- Signed premises lease showing term and options
- Bank statements, financials or projections for a new site
What people finance with a fit-out finance
Lenders we compare for this
Flexicommercial, Banjo, Angle Finance, Shift, Prospa and others on our panel. See the full panel.
Estimate your repayments
- Number of repayments
- 48
- Total interest (est.)
- $24,281
- Total repaid (est.)
- $99,281
This calculator provides an estimate only and does not account for fees, charges or the specific terms a lender may offer. It is not financial advice or an offer of finance.
Key terms
What is fit-out finance?
Fit-out finance is business lending used to fund the construction or refurbishment of commercial premises, including joinery, flooring, lighting, signage and the equipment installed. It typically combines secured equipment finance with an unsecured component for fixed works.
Can leasehold improvements be financed?
Yes, but usually not as secured equipment finance, because fixed improvements attach to a building the borrower does not own. Lenders fund them through unsecured facilities or specialist fit-out products, priced above standard asset finance.
How does a lease term affect fit-out finance?
Lenders will not normally amortise fit-out debt beyond the remaining term of the premises lease, including exercisable options. A five-year lease generally means a fit-out loan of five years or less.