What does a fit-out usually involve?
A fit-out turns a shell or tired space into somewhere your business can operate and customers want to be. Costs normally fall into five groups:
- Design and consents: designer or architect fees, building consent where required, engineering.
- Base services: electrical, plumbing, data cabling, heating and ventilation, fire systems.
- Construction: partitions, ceilings, flooring, joinery, counters, kitchens.
- Equipment and furnishings: chairs, desks, shelving, commercial kitchen gear, clinical equipment.
- Branding: signage, window graphics and exterior work.
Most owners budget for three and four. The surprises tend to come from one and two, especially in older buildings.
Why does fit-out finance matter to established SMEs?
The trading account is not the right place to fund a fit-out. A refit might cost the equivalent of several months’ profit, but the benefit arrives over years. Paying cash can leave the business short just as it reopens or starts trading at a new address, which is precisely when unplanned costs appear.
Finance lets you match the cost to the life of the improvement and keep working capital intact. It is also useful when a lease renewal comes with obligations to upgrade the premises, or when compliance changes force work you had not planned.
Leased premises versus owned premises
| Leased | Owned | |
|---|---|---|
| Who owns the improvements | Landlord (fixtures) | You or your property entity |
| Landlord consent | Almost always required | Not needed |
| Make-good at lease end | Often required | Not applicable |
| Typical security for finance | Other property or trading history | The premises itself, or other property |
If you own the premises, the building can often secure the fit-out loan. If you lease, a property-secured loan over the owner’s home, a rental or land is a common solution. Property-secured loans can be first or second mortgages, even when a mortgage already exists.
Getting the numbers right before you commit
- Get two or three quotes and ask each builder what is excluded.
- Add a contingency of a meaningful margin for older buildings or hospitality fit-outs.
- Map the trading disruption. If you are refitting a site you already trade from, how many days or weeks will it be closed or restricted?
- Plan the reopening. Staff, stock and marketing for the relaunch all need cash too.
Sector notes
- Hospitality: kitchens, extraction and grease management are expensive and heavily regulated. The Centrix report for August 2026, reported by NewsWire, noted that more than 2,900 hospitality businesses stopped trading in the previous 12 months, so lenders look closely at the operator’s track record.
- Clinics and professional practices: fit-outs often include specialised equipment and privacy requirements.
- Retail: fit-outs are usually shorter-lived, as brands refresh stores every few years.
- Industrial and warehouse: racking, mezzanines and power upgrades can be significant and are often tied to a new contract.
How we help
Tell us the project, the quote and the timing through a 60-second enquiry. A lending specialist will talk through whether a property-secured or unsecured facility makes more sense and how to stage drawdowns around the builder’s invoices.
Questions SME owners ask
Can I borrow for a fit-out in leased premises?
Yes. Fit-outs in leased premises are common. Because the improvements belong to the building, lenders usually want other security or strong trading history. Property-secured loans over a home, rental or other property are often the simplest route.
Should the landlord contribute to the fit-out?
Ask. Landlords sometimes offer a contribution or rent-free period, especially for a longer lease. Weigh any contribution against the lease terms and make-good obligations.
What happens if the fit-out runs over budget?
Build a contingency into the amount you borrow. Fit-outs commonly uncover problems with services, compliance or the base building. Borrowing a little more upfront is usually easier than a second request mid-project.
Is Investment Boost available on fit-out costs?
Some new assets in a fit-out may qualify for the 20% Investment Boost deduction, while other building work may not. Your accountant should confirm how each component is treated.