Fit-out and renovation capital: upgrading premises without stalling trade

Why are fit-outs harder to fund than equipment?

Because a fit-out is partly equipment and partly building. A new coffee machine has a serial number, a resale value and a market — easy to finance. The plastering, wiring, plumbing, joinery and signage around it are fixed to someone else’s building. If the business fails, a lender can’t easily recover them.

So the smart approach is to separate the two and fund each with the capital source that suits it.

How to split a fit-out quote

Ask your builder or fit-out company for an itemised quote, then sort each line:

Item type	Examples	Usual capital source
Movable equipment	Commercial kitchen, chairs, tables, POS, screens, machines	Equipment finance
Fixed fit-out	Partitions, plumbing, electrical, flooring, joinery, signage	Working capital loan or property-secured
Trading downtime	Rent, wages, bills while closed	Line of credit
Opening stock and marketing	First orders, launch campaign	Working capital

The equipment slice often finances most easily. The fixed slice is where property security or a strong trading history matters.

Don’t forget the downtime

The most underestimated cost of a renovation is the trading you lose while it happens. If a café closes for three weeks, rent, insurance, some wages and loan repayments keep going while revenue stops. When the doors reopen, it can take weeks for regulars to return.

Budget for:

• the closure period itself, plus a margin for builder delays
• a slower ramp-up after reopening
• any staff you keep on to retain them

A line of credit is often the cleanest way to carry that period.

How fast can fit-out capital land?

• Equipment finance — generally days once quotes and documents are in (general market guide)
• Unsecured working capital — same-day funding possible for smaller amounts
• Property-secured — $20k to $250k possible the same day; up to $5m within 24–48 hours

Fit-outs usually come with builder start dates, so arrange capital before signing the building contract, not after.

What about tax?

For 2025–26, the ATO has confirmed a $20,000 instant asset write-off threshold for eligible small businesses, based on when assets are first used or installed ready for use. Some fit-out equipment may qualify; fixed building work is usually treated differently. Speak to your accountant before you commit — timing can matter. See our instant asset write-off timing guide.

An illustrative example

A physiotherapy clinic is expanding into the shop next door. The $210,000 fit-out quote breaks down into $80,000 of treatment tables, gym equipment and IT, and $130,000 of building work. The clinic also expects four weeks of reduced appointments during works. Equipment finance covers the $80,000 of equipment. A second mortgage over the owner’s home covers the building work, settled within a day to meet the builder’s start date. A small line of credit carries the quieter month. (Illustrative only.)

Got a quote and a start date? Start your enquiry.

Fit-out checklist

• Itemised quote, separating equipment from fixed work
• Signed lease or lease offer, including any landlord contribution
• Builder’s timeline and payment schedule
• Recent business bank statements
• Plan for trading during and after the works

What lenders look for in a fit-out application

Because much of a fit-out can’t be repossessed and resold, lenders lean on other evidence:

• The business’s track record. An established operator expanding or refreshing is easier to fund than a brand-new venture.
• The lease. Remaining term and options matter — nobody wants to fund a fit-out on a lease that ends in a year.
• The quote. Itemised, from a licensed builder or fit-out company, with a clear payment schedule.
• The payback. How the upgrade lifts revenue or cuts costs — more covers, more treatment rooms, faster service.
• Security. For larger fixed works, property security often decides how much and how fast.

Make-good clauses and the end of the lease

Many commercial leases include a make-good clause requiring the tenant to return the premises to their original condition when the lease ends. That can mean paying to remove the very fit-out you’re funding now. Before you commit:

1. Read the make-good clause or ask your lawyer to.
2. Ask the landlord whether some or all of the fit-out can stay.
3. Factor any make-good cost into the long-term budget.

Staging a fit-out

If the full fit-out is large, consider staging it: the items that lift trade immediately first, cosmetic upgrades later. Staging keeps the initial finance smaller, lets the first stage start paying back, and means a later stage can be funded on stronger results. For hospitality venues, our merchant cash advance page explains a funding option that repays from the extra card takings the upgrade generates.

Ready to upgrade?

A well-planned fit-out can lift revenue for years, provided the funding covers the whole job — including the weeks when trade slows. Finding out what’s possible doesn’t involve a credit check, and your details stay with one specialist rather than being circulated to many lenders. A real person will call you. Give us accurate details of the quote, the start date and what the business can offer. See if your fit-out qualifies.