What is fit-out finance?
Fit-out finance is a type of asset hire purchase, that finances the entirety of an interior. The product finances anything from office space to gyms, retail, hotels, or even restaurants. The facility will finance a new project and will include every aspect of the interior, including furniture, equipment, lighting, security, or even the paint on the walls.
There are lots of benefits of financing your new project in this way. You are able to purchase everything under one payment structure which is then repaid over an agreed period. As a result, you are able to get the premises up and running whilst minimising the upfront cost. Whether you are setting up a new business, moving location, or even refurbishing your space, fit-out finance offers a convenient and fast method of getting the interior of your new venture finished.
The repayment structure is designed specifically for how long you want it, and it is all pre-agreed, allowing you to budget for the future. Fit-out finance has a high approval rate and tends to provide cheaper rates.
Financial benefits to choosing fit-out-finance:
- Cash flow
The great thing about fit-out finance is that by spreading the cost of the interior you are minimising the upfront cost. You are not spending all your working capital on the design and set up of your building, and you can therefore release this capital to invest in other aspects and areas of your business.
- Fast and efficient
Fit-out finance enables your business to get set up and running fast. When working with a tight budget you may naturally scale back the project or delay the development. With fit-out finance you don’t need to delay as your budget is managed over a time period. By organising the payment of all interior in one bulk structure the whole process of launching will be quicker.
- Tax benefits:
By paying for our fit-out finance monthly rather than all at once, all projects can be 100% tax deductible. Furthermore, you can pay back VAT monthly rather than all at once.
- Increased budget:
By relieving the pressure of cash flow limitations, you can decorate and design you office or hotel space to bespoke taste. This may mean you get more out of the project then originally intended. You are not spending all your working capital on the design and set up of your building, and you can therefore release this capital to invest in other aspects and areas of your business.
Client case study:
Earlier this year, Funding Bay was able to get one of our clients a fit-out finance solution needed to refurbish their gym. Whilst gyms have been shut for the majority of the last year, our client took the opportunity to use this time to plan for their expansion for when gyms eventually reopen. We were able to get this client a fit-out finance facility of 500k with a repayment structure of 3 years. With this, the gym was able to build a new shower and changing rooms, fit out a sauna and steam room, refurbish the reception and invest in a multitude of new equipment.
If you would like to find out more about fit-out finance do not hesitate to contact Funding Bay. We can assess your business and venture needs and match you with the most suitable lender. A wide selection of the lenders we work with offer fit-out finance including Lombard, Close Brothers, Hitachi or Paragon, just to name a few.
