Fit-Out Finance
Your business environment shapes how clients experience your brand and how your team performs. Whether you’re fitting out a new office, refurbishing a retail store, renovating a restaurant, or building out a medical or professional suite, the right space requires significant investment – and that investment doesn’t have to come entirely from your working capital.
Fit-out finance allows you to spread the cost of your refurbishment or new premises build-out over time, preserving cash flow while creating the environment your business needs. At Providence Finance Hub, we arrange fit-out finance for Australian businesses across virtually every industry, with 20+ years of commercial finance experience and access to 50+ lenders.
What Is Fit-Out Finance?
Fit-out finance is a type of asset or equipment finance used to fund the cost of fitting out or refurbishing a commercial space. It covers the full range of fit-out costs – from construction and joinery to furniture, fixtures, equipment, and technology – structured as a loan or lease over a fixed term.
Unlike a standard business loan, fit-out finance is specifically designed for this type of capital expenditure. Lenders understand fit-out assets and can approve these facilities quickly, often without requiring property security.
Common structures include:
Chattel mortgage – You own the assets from day one and claim depreciation and interest as tax deductions. Fixed monthly repayments, most commonly used by businesses that want to own the fit-out outright.
Finance lease – The lender owns the assets during the lease term. You make regular lease payments (which may be fully tax-deductible) and at the end of the term you have the option to purchase, upgrade, or return the assets.
Hire purchase – Similar to chattel mortgage but the lender retains legal ownership during the loan term, with ownership transferring to you on final payment.
What Does Fit-Out Finance Cover?
Fit-out finance can fund a broad range of costs associated with commercial fit-outs and refurbishments:
Office fit-outs
Partitioning, workstations and desks, meeting room fit-out, reception areas, kitchen and breakout spaces, lighting and electrical, AV and technology infrastructure, flooring and wall treatments.
Retail fit-outs
Shopfront construction, point-of-sale counters, display fixtures and shelving, signage, lighting, refrigeration and coolroom fit-out, EFTPOS and security systems, flooring and feature walls.
Hospitality and restaurant fit-outs
Commercial kitchen equipment and installation, dining room fit-out, bar construction, coolrooms and refrigeration, ventilation and exhaust, seating and furniture, POS systems, outdoor area construction.
Medical and allied health fit-outs
Treatment rooms and consulting suites, dental chair installation, reception and waiting areas, specialist medical cabinetry, sterilisation equipment, diagnostic equipment installation.
Professional services fit-outs
Law firm, accounting, financial planning, and real estate office fit-outs including custom joinery, meeting rooms, reception areas, and IT infrastructure.
Fit-Out Finance – Key Parameters
| Parameter | Typical Range |
|---|---|
| Minimum loan amount | $20,000 |
| Maximum loan amount | $5,000,000+ (lender dependent) |
| Loan term | 1 to 7 years |
| Security required | Generally no property security required |
| Deposit | Nil to 10% (application dependent) |
| Approval timeframe | 24-72 hours for standard applications |
No-Doc and Low-Doc Fit-Out Finance
If your business does not have up-to-date financial statements, or you prefer not to provide full financials, low-doc and no-doc fit-out finance options may be available. For eligible GST-registered businesses, fit-out finance of up to $500,000 may be available without financial statements, based on your ABN status, credit profile, and the nature of the fit-out.
Why Use Fit-Out Finance Instead of Cash?
Preserve working capital – Fit-out costs can run to hundreds of thousands of dollars. Paying cash ties up funds you could use for stock, staffing, marketing, or unexpected costs.
Tax advantages – Depending on the structure, interest, lease payments, or depreciation on fit-out assets may be fully deductible. Your accountant can confirm the most tax-effective approach.
Fixed repayments – Monthly repayments are fixed for the term, making cash flow forecasting straightforward.
Match cost to benefit – The fit-out will benefit your business for 5-10 years. It makes commercial sense to spread the cost over a similar period rather than paying it all upfront.
Industries We Regularly Finance
We have arranged fit-out finance for businesses across retail stores and boutiques, cafes, restaurants, bars, and hotels, medical clinics, dental practices, and allied health centres, law firms, accounting practices, and financial planning offices, hair salons, beauty clinics, and day spas, gyms and fitness studios, childcare centres, pharmacies and healthcare retailers, and automotive showrooms. If your industry isn’t listed, contact us – we fund commercial fit-outs across virtually every sector.
Frequently Asked Questions
Can I get fit-out finance for a leased premises?
Yes. The majority of fit-out finance is for leased premises – you don’t need to own the building. Lenders focus on the business’s ability to service the finance, not on the ownership of the space. A copy of the lease agreement is typically required as part of the application.
Do I need a deposit for fit-out finance?
Not always. Many fit-out finance facilities are approved with no deposit, particularly for established businesses with a clean credit history. For larger fit-outs or higher-risk applications, a deposit of 10-20% may be required.
What if my fit-out includes both construction costs and equipment?
We can structure a single facility to cover both components. From your perspective it operates as a single repayment with a single approval process.
How does fit-out finance work if the project is staged?
We structure the facility as a drawdown facility where funds are released progressively as invoices are submitted. You only pay interest on the amounts drawn, and repayments do not commence until the facility is fully drawn.
Can I finance a fit-out for a new business?
Yes, though options may be more limited than for established businesses. We work with specialist lenders who are comfortable with start-up fit-out finance for the right applications.
