Shop Fit-Out Finance

Learn about fit-out finance and compare your business loan options with Savvy before you refurbish your shop.

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, updated on July 26th, 2023       

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First impressions are crucial when it comes to running a business, which is why it’s so important to have a shop which can attract customers. If you’re looking to renovate or refurbish your business’ premises, front or back, shop fit-out finance might be the option for you.

At Savvy, we make it simple to compare business loans by breaking down offers from our reputable lending panel so you can assess them side-by-side to determine which is the best to suit your needs. Find out more about shop fit-out loans here so you can lock in a great deal.

How does shop fit-out finance work?

Accessing financing to fit out your shop is no different to obtaining a business loan for any other potential need. The products themselves and the way they work are the same, with the most common and popular option being an unsecured business loan. These are available from a range of lenders and can be compared right here with Savvy, with loan amounts ranging from as little as $5,000 all the way up to $500,000 without the need for any security. They can subsequently be repaid with interest in instalments over a loan term between three months and five years.

Alternatively, if you have a valuable asset such as property which can act as collateral for your loan, you might wish to fit out your shop with a secured business loan. Alternatively, you can look at equipment finance if you’re wanting to use a valuable piece of machinery or equipment as security. These expand your borrowing range significantly, up to and over $1 million, while exposing you to longer available loan terms (up to ten years) and lower interest rates. As such, this type of finance will save you money in the long term but will require you and your asset to meet eligibility checks to ensure they’re suitable.

There are alternative sources of financing which can be used to pay for your shop refitting, too. A business line of credit allows you to withdraw funds up to an approved limit whenever you need them, only paying interest on the amount you’ve used. Invoice finance is another potential choice which is useful for immediately boosting your business’ cashflow. This involves selling outstanding invoices to a financier, who can pay you up to 95% of their value up front and the remainder once your customer has paid (minus fees).

You can compare all of these types of finance with Savvy to help you make the most informed decision on which business investment offer is best for you.

What are the benefits of shop fit-out finance?

There’s a range of reasons why fit-out finance might be the best option for your shop. It’s crucial you consider these closely before committing to your loan, as you should always be certain it’s the best option for you. You can benefit from the following factors:

Maintains strong cashflow and boost capital

By opting for finance from a lender, your business’ cashflow won’t need to take a significant short-term hit to pay for refurbishing. Instead, it can remain at its current level or be increased by the loan, which can also boost your business’ working capital.

Repay costs at your own pace

Part of the appeal of business finance is that it allows you to repay your debt at a rate that suits your business’ needs. Whether you’re capable of completing your loan payments within a year or would prefer to stretch them out to make them more manageable for you, you can select your loan term.

Able to use funds however you like

Business loans are highly flexible in the way they can be used, with essentially no restrictions placed on them provided they’re used for business purposes. Some of the many things you can purchase when fitting out your shop include:

  • Industrial refrigerators and food storage spaces
  • Stove tops and new ovens
  • Coffee machines
  • Electrical upgrades, such as sockets and wiring
  • Flooring and internal structural modifications
  • Shelving, cabinets, counters and benches

Fast application and approval process

If your business needs to access funds quickly, you might be in luck. Unsecured business loans can be filled out, submitted, approved and paid online in the space of just 24 hours, giving your business the ability to get the ball rolling on the fit-out sooner.

Tax deductions

A factor which should be closely considered by businesses is the potential savings which can be experienced via useful tax deductions. Specifically, the interest portion of your monthly business loan repayment is able to be claimed as a deduction, which can help your business save thousands over the life of your loan.

Types of business loan

Why compare business loans through Savvy?

Top tips for saving money on shop fit-out finance

Compare options with Savvy

Surveying the market to compare as many options as possible is one of the simplest and most effective ways to save money. Fortunately, Savvy does the heavy lifting for you by listing offers from our lending partners and laying out all their key features so you can gain a clear understanding of the full picture.

Make additional repayments

Many of our partnered lenders will allow you to pay above the minimum required monthly contribution as a means of getting ahead and paying off your loan early. Completing your repayments ahead of schedule can slash the interest you’re required to pay by hundreds of dollars over the life of the loan.

Create a thorough plan

By formulating a clear plan of what’s needed for your shop and using it as the foundation for your loan, you can minimise the risk of going over your budget and having to repay more with interest. In doing this ahead of time, you can also avoid the potential for steeper costs brought on by last-minute arrangements.

Do some of the work yourself

Even if you’re not a qualified builder or have any idea about how to fit out a shop, you can reduce the cost of this process by doing some of the gutting and removal work yourself. There aren’t any qualifications required to knock down a hollow wall jutting out into your shop, after all.

Frequently asked shop fit-out finance questions answered

Can I get approved for shop fit-out finance as a startup?

You can – but it’s more difficult to do so. There are specialist lenders in the market who can offer startup finance solutions, as most lenders will require at least six months of trading for you to be eligible. The amount you can borrow as a startup with less than six months under your belt will be substantially less than what you’d otherwise be able to take out if your business had been trading over a longer period.

What type of interest rate will my loan have?

In most cases, business loans come with fixed interest rate terms. These are preferred by many business owners, as their rates, and their repayments in equal measure, remain consistent across your repayment term. This makes it easier to budget around your repayments each month, which is advantageous for owners when determining how to distribute their available funds. Variable rates are sometimes available on these loans also, but they’re less common.

Do I need to pay a deposit for a fit-out loan?

No – business loans don’t come with any obligation to contribute a deposit to your lender. However, reducing your loan sum by contributing some of your business’ available funds can help you cut down on the size of your loan and interest payable overall.

Can I include fit-out costs in my loan when buying a business?

Yes – you can include these costs in your business purchase plan if you’re required to present one to your lender. This isn’t uncommon, as new owners will often look to change things up in the way the business is presented and structured. If you’re looking to refit a business you’re purchasing, the cost of doing so (alongside any other business-related expenses) can be included in your loan provided you can afford to repay it.

Should I compare fit-out quotes as well?

Yes – it’s highly recommended you take out several quotes for fitting work to ensure you find the most affordable one for your business. Of course, quality is always the main focus, but it’s never a good feeling to find out you paid hundreds of dollars more than you needed to.

Am I able to recoup money by selling old fittings?

Yes – another way to save money in the refitting process is to not simply throw away old fittings but list them for sale. There’ll always be a market for fittings, such as from other small businesses looking to fit-out their own premises but perhaps don’t have the money to buy brand-new. You should look to put these on the market, as you could offset your loan amount considerably if you’re lucky.

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