Quick answer
Business fitout finance is a loan or lease used to pay for the interior build and fixtures of a commercial space, such as joinery, lighting, flooring, counters and equipment. Security can be the fitout itself, other assets or property. Ownright Custom Finance arranges fitout finance Australia-wide, including for new businesses and harder-to-place files.
Key points
- Joinery, fixtures, signage, lighting and installed equipment can be funded together
- Fitouts are hard to repossess, so lenders often want other security or a stronger story
- Staged payments to builders can sometimes be matched to drawdowns
- New businesses and tenants with lease deadlines can still be considered
- Suits
- Retailers, cafes, clinics, salons, gyms and office tenants
- Security
- Fitout, equipment, a general security agreement or property
- Structures
- Secured loan, equipment-style finance or progress drawdown
- Australia-wide
- Yes
What is business fitout finance?
Business fitout finance pays for turning an empty tenancy into a working space. That might be a cafe with a new counter and extraction, a clinic with treatment rooms, a salon with basins and mirrors, or an office with partitions and cabling. The loan or lease covers the build and the things that go into it, so you do not have to find the whole cost out of cash before opening day.
A fitout is a different animal from a single machine. It mixes labour, materials, fixed items and loose equipment, and it is often priced across several trades. Because of that mix, the way the finance is structured matters as much as the amount.
What can be included in a fitout loan?
- Builder’s costs, joinery, flooring, painting and ceilings
- Electrical, lighting, data cabling and air conditioning
- Counters, shelving, display units and furniture
- Signage and shopfront work
- Fixed and removable equipment such as ovens, chairs, basins or treatment beds
- Design and project management fees, if the lender accepts them
Lenders vary on soft costs like design fees or permits, so ask early. Our hospitality equipment finance page covers the kitchen and bar side in more detail.
Who needs fitout finance?
Anyone moving into, expanding or refreshing a commercial space. New tenants carry the biggest cost, but established businesses also refit when a lease renews, a franchise brand changes its look or a second location opens. Operators in retail, hospitality, health, beauty, fitness and professional services are regular examples.
What do lenders look at for a fitout?
The security problem. Fixed fitout items are difficult for a lender to recover, so many lenders ask for something extra. That could be a general security agreement over the business, a director’s guarantee, equipment that can be resold, or a property.
The lease. Length, remaining term, renewal options, rent and any landlord contribution show the business has a home long enough to repay the debt.
The business. Trading history, financials, bank statements and the experience of the owners. For a new operator, a clear plan and relevant industry background matter more.
The quotes. Itemised quotes from builders and suppliers. Vague lump sums make it harder for a lender to see what is being funded.
Fitout versus equipment: how are they split?
| Item | Typical treatment |
|---|---|
| Joinery, plumbing, built-in lighting | Harder to resell, often needs extra security |
| Freestanding equipment | Usually simpler asset finance |
| Signage | Case by case |
| Soft costs (design, permits) | Some lenders include, some do not |
| Landlord incentive | May reduce the amount you need |
A broker can often split a project into two or three tranches so the easy-to-finance items are funded cheaply, and the fixed items sit under a different structure. Tax treatment varies between items, so the ATO’s $20,000 instant asset write-off, which applies to eligible small businesses with turnover under $10 million from 1 July 2026, is a conversation worth having with your accountant.
How Ownright arranges fitout finance
Trevor Scott and the team start with the timeline, because a fitout rarely waits. A lease start date, a landlord deadline or a launch event often sets the clock. We ask what has to be paid first, what can wait and what the builder expects, then we shape the finance around that sequence.
We also look for the solutions most brokers do not mention. If the business is new, we may suggest using a property you own as security with a secured business loan. If it is a mature business with cash flow, we might separate the equipment from the build. Ownright works Australia-wide and has seen fitouts of every size, from a single-chair barber to a multi-room clinic.
An illustration
Illustrative scenario only. A first-time cafe owner has signed a five-year lease and has quotes for the build, a coffee machine, a cool room and furniture. The owner has hospitality experience but no trading history. A broker could use a lender who funds the equipment as an asset deal, then look at additional security for the fixed build, with staged drawdowns lined up to the builder’s progress claims.
Can a start-up get fitout finance?
It can be possible, though the maths is stricter. Without a trading record, lenders weigh the owner’s background, deposit, a realistic projection and any additional security. Our start-up business loans page covers what lenders usually ask for. If you already own property, that can open more doors.
Mistakes to avoid
- Signing a lease and builder’s contract before knowing how the project will be funded
- Underestimating the budget and leaving no buffer for variations
- Ordering equipment before the finance is approved
- Ignoring the lease expiry when choosing a loan term
- Using up all working capital on the build and trading with an empty account
Documents to have ready
- Lease or heads of agreement
- Itemised quotes from the builder and suppliers
- Business plan or trading summary
- Recent tax returns, BAS and bank statements for existing businesses
- Asset and liability list for owners and directors
Our business loan documents checklist lists the usual requests, and how to get loan ready helps you assemble them. If the space needs structural works rather than a fitout, property refurbishment finance may be a closer match.
How do progress payments work on a fitout?
Builders rarely want all their money on the first day, and lenders rarely want to release it all at once either. A staged approach matches the two. The builder issues a progress claim as each phase is completed, such as demolition, services, joinery and finishing. The lender, sometimes after an inspection or a sign-off, releases funds against that claim. This protects everyone from paying for work that has not been done. Our guide on how loan drawdowns work explains the mechanics in plain English.
What happens if costs blow out?
Fitouts have a way of growing. A hidden pipe, a council requirement or a design change can add weeks and cost. Sensible planning includes a contingency in the budget and a talk with the lender about how variations are handled. Some lenders allow a small buffer in the facility, while others need a separate request. Raising the issue early is far better than discovering the gap when the builder is waiting for payment. We help you ask the right questions before signing so there are fewer surprises later.
Time to open the doors?
Sounds like you’re looking for business fitout finance. We’re the lending experts in turning quotes and lease dates into a funded plan, so see if you qualify and let us start working on yours.
How it works, step by step
- 1
Step 1
Share the lease details, fitout quote and your plans for opening.
- 2
Step 2
We work out how to split the cost between fixed fitout and removable equipment.
- 3
Step 3
We approach lenders who finance fitouts and set up staged payments if the builder needs them.
- 4
Step 4
Paperwork is signed, the builder and suppliers are paid and you open.
Frequently asked questions
Can I finance a fitout before I have traded?
Sometimes. Start-up fitouts are harder because there is no trading history, so lenders lean on your experience, a business plan, a deposit and sometimes extra security such as property. We explain what each lender wants to see and help you present the plan in a way that answers the obvious questions.
Why is fitout finance harder than equipment finance?
Because most of a fitout is bolted into someone else's building. A lender cannot easily take back and resell plumbing, joinery or lighting, so it often needs other security or a strong borrower. Equipment that can be removed and resold, such as ovens or chairs, is usually simpler to finance.
Can the landlord contribution be included?
Landlords sometimes offer a fitout incentive or rent-free period. Lenders generally want to see this in writing and may factor it into the budget. We can discuss how an incentive affects the amount you need to borrow and how it interacts with the lease start date.
Can I pay the builder in stages?
Often there is a staged approach. Some lenders release funds against progress claims or invoices rather than as one lump sum, which suits a build that unfolds over weeks. The lender may want to see the building contract and certificates of progress before each release.
Does the lease length matter?
Yes. A lender does not want to fund a fitout that outlasts the lease. A short remaining lease term can reduce the loan term or amount offered, while a long lease or an option to renew helps. Bring the lease and any renewal options with you.
Can I get fitout finance with bad credit?
It can be possible, although options narrow. Additional security, a larger deposit or a stronger trading record can help. Some lenders look more at the business's current cash flow than at older credit marks. We talk through what happened and which lenders may be open to it.