Fit Out Finance

Moving into new premises is an extremely exciting stage for your business. Whether you’ve bought a new shop, or secured a penthouse floor for your office headquarters, you’re beginning a new chapter for your company.

However, that existing space is unlikely to be fitted out to meet your exact needs. Both furnishings, such as shelves and desks, and more significant elements like walls and air conditioning systems, may need to be installed or adapted.      

In many cases, the whole place needs stripping out and starting again from scratch. The capital investment that comes with moving into new commercial spaces can be significant, with ongoing cash flow strains that need careful management.

Fit out finance offers a solution. Designed to spread the cost of moving into new business premises, fit out finance packages provide a comprehensive financial solution for refurbishment projects and fit out costs.

What is Fit Out Finance?

Fit out finance is not a single product, but refers to a collection of individually tailored finance options, developed together to provide a bespoke package that will encompass every aspect of your fit out project.

This typically includes:

• Unsecured finance - Because most refurbishment projects are labour-intensive, or include the acquisition of assets that depreciate quickly or have minimal resale value (such as shelving, integrated fittings, or low-value furnishings), there is little collateral to use as security. Unsecured finance, often backed with a director’s guarantee, typically makes up the majority of a fit out finance package.
• Asset finance - For high-value assets, machinery, and equipment that depreciates slowly, asset finance offers a low-cost solution. With both purchase and leasing options, high-cost items can be obtained with minimal capital investment, spreading the cost with manageable monthly payments.
• Secured business loans - Larger sums and more competitive interest rates can be obtained through additional secured funding. These business loans utilise other company assets, such as the building itself, existing high-value machinery, or stock to provide guarantees and mitigate risk.

Our business finance team at Clifton Private Finance can work with you to develop a bespoke solution, comprising of multiple finance options brought together under the fit out finance umbrella.

Tailored to your business’s specific needs, we work with specialised lenders to explore the best deals on the market.

What You Can Use Fit Out Finance For

Fit out finance is designed to facilitate your move into your new business premises, and can be tailored to meet the full needs of fit outs.

This includes:

Interior Construction

Fit outs are not just cosmetic. It’s important that the building infrastructure is suited to your needs and that you are not forced to try to shape your company dynamics around the existing space.

Coordinated fit out finance will cover:

• Internal walls - Most commercial spaces use timber frames and plasterboard internal walls. These are not load bearing, which means old, unwanted walls can be removed and new ones quickly constructed. Fit outs and refurbishment projects often include reconfiguring the internal space to meet your requirements, with large open plan areas separated into offices, store rooms, kitchen and toilet facilities, and other rooms.
• HVAC systems and plumbing - Heating, ventilation, and air conditioning (HVAC), and plumbing for toilets and kitchens are important concerns for all companies when developing your space. Fit outs typically include a reconfiguration and update of these key infrastructure systems.
• Electrical and IT infrastructure - Power, WiFi and ethernet networking, and security cabling are all key components to the interior construction part of fit outs, requiring capital investment that can be obtained through business loans.
• Insulation and energy efficiency - It’s important to ensure your building meets all regulations. Energy efficiency is at the core of business models and should be considered as part of your fit out from an early stage. Renewable energy options, such as installing solar panels, can also often be funded through strategic fit out finance with structured asset finance solutions available in many cases.

Decor and Fittings

Turning the space into a comfortable environment for staff and customers is an important part of fit outs.

Once the core infrastructure is in place, funding concerns turn to these softer touches, which can include:

• Painting walls
• Floor and window coverings
• Furnishings
• Lighting
• Shelving
• Toilet facilities
• Kitchen units
• Company branding and signage
• Specialist industry fittings

Equipment

Crossing between fit outs and general use asset finance, your fit out project may include some elements of necessary equipment.

This may include:

• Kitchen equipment
• Cleaning equipment
• Shop fridges
• Security cameras
• IT equipment
• Other specialist fitted machinery for your industry

Successful fit outs benefit from detailed planning and funding structures. Discuss your full requirements with your Clifton Private Finance adviser to build a full plan for your fit out finance.

Professional Fees

The physical part of fit out costs often overshadows other funding requirements. Depending on the scale of your fit out, additional finance needs to be in place to meet the fees generated by the professional services you engage - room architects and interior designers, through to structural engineers and M&E (mechanical and electrical) consultants. Unsecured finance can help meet these additional considerations.

6 Benefits of Fit Out Finance

Fit out finance solutions provide the funds you need to expand efficiently without putting strain on existing capital, opening the door to opportunities that enable your business to move forward with confidence.

1. Providing Essential Non-Dilutive Capital

Obtaining the capital required for fit outs can be complex. With no ‘one size fits all’ solution, business owners and CFOs are often faced with spending weeks setting up multiple finance streams to try to raise the capital required.

A fit out finance package developed by Clifton Private Finance will evaluate the true cost of your fit out and ensure the funds are available when they are needed.

Alternative options for businesses are often dilutive, requiring the sale of company shares to investors to raise the money required. Fit out finance ensures that you remain in full control of your business, removing the need for venture capital or outside investment.

2. Smoothing Cash Flow

Obtaining disparate funding solutions that are not properly managed can lead to substantial cash flow strain, with repayment schedules poorly configured and leading to additional pressure during the tightest periods.

Businesses with seasonal cash flow fluctuations can benefit from bespoke payment structures that consider this ebb and flow, with ongoing support from the CPF business team should any challenges emerge in the future.

3. Easing Administration

A comprehensive finance solution for fit outs, fit out finance is developed to minimise complexity. Ongoing administration and day-to-day management is made as easy as possible, with coordinated repayment structures that spread the cost of fit outs without needing constant attention.

4. Meeting Refurbishment Goals

The structured nature of fit out finance means there’s no need to cut corners or hold back on wish list items. Your fit out project is evaluated as a whole, and informed decisions are made to determine where the funding is best placed to maximise the effect.

5. Easing the Move

Moving to a new location is disruptive and often has a knock-on effect on workflow. Unsurprisingly, this can make productivity and turnover dip in the first weeks following a relocation. Poorly considered fit outs exacerbate this problem, as staff struggle to work around issues and additional money is drained fixing avoidable problems.

With the right funding in place, moving to new business premises is a pleasure rather than a pain, and your company grows comfortably without any major headaches.

6.Ongoing Support

A partnership with Clifton Private Finance to secure funding for your fit out project represents a long-term relationship for your company.

We will remain alongside as your business grows, providing effective support and advice where needed.

Our established ties with specialist lenders can help put you in a stronger position for future finance options, giving your company the foundation it needs for continued success.

How Much Can I Borrow with Fit Out Finance?

Unsecured business loans are assessed based on your business creditworthiness and financial documentation. The fit out finance team at Clifton Private Finance will explore options that are in line with your business size, ensuring that repayments are affordable and interest rates are competitive.

We can arrange for unsecured business loans up to £500k, with multi-platform funding options up to £2 million for businesses with a substantial trading record.

Circumstances that will affect your application include:

• Business credit report
• Current business accounts
• Industry sector
• Fit out requirements
• Available securities

Contact Clifton Private Finance today to explore your finance options.

Fit Out Finance with Clifton Private Finance

At Clifton Private Finance, our business funding advisers have the experience you need to fund a successful fit out.

With clients from across the retail, hospitality, and service industries, we understand the challenges faced when moving to a new premises and can help ensure the right funding is in place to solve every problem and smooth every difficulty.

A whole-of-market broker, our business team will work with you to evaluate the options available from the full range of UK banks and lenders to secure funding that is low-cost and flexible.

Explore your options by speaking with us today.