Fit-out finance · Retail
Fit-out finance for retail
Retail finance is lending sized to daily takings and seasonal stock cycles, covering inventory buys ahead of peak trade, store fit-outs and the working capital that carries a shop through quiet months.
How a fit-out finance works for retail
Shopfitting is expensive and largely non-recoverable — joinery, lighting, flooring and signage that belong to the premises rather than to you. Fit-out finance spreads that cost across the lease term instead of clearing your cash reserves before you have traded a day. Match the finance term to the lease, not beyond it: financing a seven-year fit-out on a three-year lease with no option is a mistake we see often. Where the landlord contributes to fit-out, get that agreement documented before we structure the facility.
The cash-flow pattern we plan around
Daily card takings with heavy seasonal peaks, against stock commitments and supplier deposits made two to four months ahead of the selling season.
What retail typically fund
- Seasonal stock and supplier deposits
- Store fit-out and refurbishment
- POS, security and back-of-house systems
- Rent and wages through quiet months
- Opening a second location
Fit-out finance for retail: the numbers
| Typical amounts | $20,000 – $1,500,000 |
|---|---|
| Term | 12–60 months |
| Indicative rates | 9.5% – 22% p.a. |
| Repayments | Monthly |
| Speed | 3–10 business days |
| Documents retail usually need | ABN and lease or licence for the premises · 6 months of bank statements and merchant statements · Supplier quotes or purchase orders for stock |
Rates shown are indicative ranges observed across our lender panel for the period stated. They are not an offer or quote. Your rate depends on your business, the lender, the amount, the term and the security offered. The lender makes the final credit decision.
Key terms
Retail inventory finance
Retail inventory finance is short-term funding used to buy stock ahead of a selling season, repaid from the sales that stock generates rather than from existing cash reserves.
Merchant statement assessment
Merchant statement assessment is a lending approach that sizes a facility against daily card settlement data, allowing a retailer to be assessed on current trade rather than on a year-old set of financials.
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.