Funding a fit-out or a move to new premises

A new fit-out or a move to better premises can change the whole feel of a business. A café with a proper kitchen, a clinic with more rooms, a workshop with space for another machine, a shop on a busier street — each can lift what you’re able to do.

They’re also some of the biggest single investments a small business makes, and the costs have a habit of growing once work starts. Let’s plan it properly.

What does a fit-out or move really cost?

The builder’s quote is the headline, but it’s rarely the whole story. A realistic budget includes:

• Construction and fit-out — joinery, plumbing, electrical, flooring, lighting.
• Fixtures and equipment — counters, shelving, clinical or kitchen equipment, point-of-sale.
• Approvals — council, building certification, strata or landlord consent.
• Lease costs — bond or bank guarantee, legal fees, rent during the fit-out period.
• Make-good at your old premises, if you’re moving.
• Moving — relocating and reinstalling equipment, IT and phones.
• Signage and marketing so customers find you.
• Downtime — lost trade while you’re closed or disrupted.
• Contingency — a buffer for the surprises every build throws up.

Which funding suits a fit-out or move?

Situation	Tends to suit	Why
Large fit-out or full relocation	Property-secured loan	Bigger amount, longer payback
Smaller refit for a trading business	Unsecured loan	Sized on turnover and bank statements
Buying your own premises	Property-secured loan	Long-term commitment
Ramp-up period at a new site	Line of credit	Covers the gap while trade builds
Equipment within the fit-out	Loan matched to the equipment’s life	Different lifespans, different terms

Property-secured loans run from $20,000 to $5,000,000. Unsecured options for trading businesses are typically $5,000 to $500,000.

How should the funding line up with your lease?

This is one of the most overlooked questions. A fit-out is fixed to the premises — you can’t take it with you. So:

1. Check the lease term and options. How long are you realistically there?
2. Don’t fund past your lease. Paying for a fit-out after you’ve left is painful.
3. Negotiate with the landlord. Rent-free periods or a fit-out contribution reduce what you need to fund.
4. Understand make-good obligations at the end of the lease — they’re a future cost.

Once your budget is clear, ask a real person what’s realistic — there’s no credit check when you first enquire.

How do you plan the ramp-up?

Moving or opening a new location almost always involves a slower period while customers adjust. Plan for it:

• Estimate a realistic ramp-up — how many weeks until trade reaches your target?
• Keep your existing site running smoothly if you’re expanding rather than relocating.
• Have a buffer or a limit available for the ramp-up rather than stretching the fit-out budget.
• Communicate early with regular customers about the move.

Our growing stage guide covers the broader cash flow side of expansion.

What do lenders want to see?

• Quotes for the fit-out, equipment and major costs.
• The lease, or heads of agreement, including term and options.
• Bank statements showing how the existing business trades.
• Lodgements up to date.
• Your plan for the new space — why it will lift income.
• Property details, for larger amounts.

An illustrative example

Illustrative only. A hairdressing salon has outgrown its four-chair space. The owner has found a larger tenancy two streets away with room for eight chairs and a basin area. The landlord has offered a rent-free period during the fit-out on a five-year lease with a five-year option.

Her funding plan ranks a property-secured loan first, because the fit-out is substantial and she owns her home with equity. It suggests setting the term within the lease period, adding a contingency to the builder’s quote and budgeting for a few quieter weeks while clients adjust to the new location.

Lease or buy your premises?

Some owners reach a point where buying the premises looks more appealing than paying rent. It can make sense, but it’s a very different commitment:

	Leasing	Buying
Up-front cost	Bond, fit-out and legal fees	Deposit, stamp duty, legal fees and fit-out
Flexibility	Move at lease end	Harder to relocate quickly
Fit-out risk	Lost when the lease ends	Stays with the property you own
Funding	Fit-out funding only	Property-secured purchase funding
Long-term	Rent rises over time	You build equity in the premises

Stamp duty is set by each state revenue office and can be a large part of the up-front cost, so check your state’s rules early. If buying stretches the business too thin, a longer lease with renewal options may give you most of the security without the capital outlay.

What order should things happen in?

A simple sequence keeps a fit-out on track: agree the lease terms (or finalise the purchase) first, then lock in quotes, then arrange funding, then book trades. Signing a lease before funding is in place — or starting work before approvals are through — is how projects stall halfway with rent already running.

Planning a new space? Let’s fund it with room to breathe

A great fit-out should make your business easier to run and more enjoyable to walk into. We’ll help you find funding that covers the real cost — including the bits people forget — and lines up with your lease.

It takes about 60 seconds to enquire, with no credit check. We don’t send your details to a queue of lenders; a real person reads your situation and calls you. Please be accurate about the total budget, your lease and your monthly deposits so we can match you properly first time.

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