Best Business Loans

Can I use funding for a store refurbishment or new shop fit-out?

Short answer

Yes — many UK business finance options can be used for a store refurbishment or new shop fit-out, including fixtures, furniture, equipment, signage and professional fees. Lenders generally view fit-out works as a legitimate business purpose, provided costs are itemised and repayments are affordable from your projected cash flow. The most suitable route depends on what you’re buying, the size of the project and whether you can offer security.

Part 1 of 5: What fit-out and refurbishment costs can finance cover?

“Refurbishment” and “fit-out” funding typically supports everything needed to modernise or open a retail space, from floor to ceiling to front-of-house experience. Finance can often combine multiple cost categories within one project, as long as quotes and invoices are clear. The aim is to align funding type to the assets and works you’re paying for.

Eligible costs typically include

Fixtures, fittings and furniture (F, F & F): counters, shelving, racking, display units, seating, storage and back-of-house furniture.
Equipment and technology: POS systems, payment terminals, CCTV, security gates, lighting rigs, refrigeration and specialist retail equipment.
Build works: partitions, flooring, ceilings, plastering, carpentry, decorating and reinstatement works.
Mechanical & electrical: lighting, HVAC, small power, data cabling, fire alarms and emergency lighting.
Brand and customer experience: signage, window displays, digital screens, wayfinding, merchandising and shopfront improvements.
Professional and compliance: design, project management, building control fees, health & safety, surveys and landlord approvals.

Common exclusions and conditions

Purely aesthetic “nice-to-have” items may be queried if they don’t benefit trading or safety.
Landlord works vs tenant works should be clear in quotes; some lenders won’t fund landlord obligations.
Planning permission, building control sign-off and listed-building restrictions must be addressed where relevant.
Cash payments to contractors are rarely acceptable; lenders prefer traceable, staged invoices.

Expect lenders to ask for a scope of works, contractor quotes, and a drawdown schedule for milestone payments. Where assets are being acquired, serial numbers or asset lists help match funding to tangible items.

Part 2 of 5: Funding options for shop refurbishments and fit-outs

Multiple finance routes can support the same project, and many retailers use a blend to optimise cost and flexibility. Here are common options lenders and brokers consider for UK retail fit-outs, depending on asset type, project complexity and your trading profile.

Fit-Out Finance (unsecured or partly secured): Designed for refurbishment projects, often paid directly to your contractor in stages. Suitable for multi-trade works where there’s a clear programme and fixed-price contract.
Asset Finance (Hire Purchase or Finance Lease): Ideal for equipment, display units, refrigeration, and technology with identifiable serialised assets. Spreads cost over the asset’s useful life.
Unsecured Business Loan: Flexible lump sum for mixed costs, including professional fees and soft costs not easily asset-financed. Usually fixed term and fixed repayments.
Merchant Cash Advance: Repay from a small percentage of your card takings, handy for seasonal retail cash flows. Works best if a significant share of sales are via card.
Revolving Credit / Business Line of Credit: Access and repay as needed during the project, useful for contingency and unplanned extras.
Invoice Finance (for B2B suppliers): If you supply other businesses (e.g., wholesale side), this can free cash to fund your refit indirectly.
Refinance / Sale & Leaseback: Release capital tied in existing assets to part-fund the new fit-out without new equity.
Growth Guarantee Scheme-backed loans: Government-supported eligibility for qualifying UK SMEs to support investment and growth, including refurbishments.

Which route when?

Mostly furniture/equipment: favour asset finance for competitive terms and alignment to asset life.
Mixed building works and professional fees: fit-out finance or unsecured business loan is often more suitable.
Highly seasonal footfall: consider a merchant cash advance for flexible repayments tied to turnover.
Larger programmes with phased works: staged drawdowns via fit-out finance or a revolving facility support cash control.

Typical timelines and drawdowns

Simple unsecured loans: decisions can be made quickly once documents are provided, subject to lender criteria.
Asset finance: often fast where assets and suppliers are known and invoicing is clear.
Fit-out facilities: staged payments align to milestones (deposit, first fix, second fix, practical completion) with evidence of progress.

Part 3 of 5: How Best Business Loans helps you find the right fit-out funding

Best Business Loans is an independent introducer that helps established UK companies connect with relevant lenders and brokers for refurb and fit-out projects. We don’t lend directly; we guide you to suitable providers based on your sector, needs and affordability. Our process is fast, transparent and built around your trading reality.

Simple steps to get started

Complete a Quick Quote: share your business details, project scope and estimated budget.
Smart matching: our system compares your profile with lenders and brokers active in retail fit-out finance.
Introductions: we connect you with providers who may support your plan, saving you time calling around.
You decide: review terms, compare structures and choose the route that fits your cash flow and risk tolerance.

To strengthen your enquiry, prepare a brief scope of works, contractor quotes, a timeline, and a cash flow forecast showing how repayments fit. If you operate in retail and need sector-specific guidance, see our page on retailers business loans and finance options.

There’s no obligation to proceed, and it’s free to submit your details for an eligibility check or initial decision in principle. Any offer you receive will come directly from a regulated lender or broker and will include clear terms, fees and risks so you can make an informed choice.

Part 4 of 5: Planning, budgeting and compliance essentials

A robust plan reduces cost overruns and improves lender confidence. Start with a detailed scope, fixed-price quotes where possible, and a 10–15% contingency allowance for unexpected items. Align your drawdown plan to milestones so you only pay for verified progress.

Documents lenders usually ask for

Company details, last 1–2 years’ accounts and recent bank statements.
Project scope, contractor quotes, programme and milestone payment schedule.
Landlord consent (licence to alter) where required, plus insurance evidence.
Photos or plans, and any statutory approvals (planning, building control, signage permits).
Cash flow forecast showing affordability and seasonality assumptions.

Check compliance early: landlord licences to alter, building regulations sign-off, CDM 2015 duties (if applicable), fire safety and accessibility standards. Make sure your public liability and contractors’ insurances are in place to protect the business and satisfy lender conditions.

On tax, certain fixtures and integral features may qualify for capital allowances; speak to your accountant to optimise the reliefs legitimately. Consider VAT on contractor invoices and whether the timing of VAT returns affects cash flow; a VAT facility may help if your project is VAT-heavy. Keep documentation well organised to support both funding and tax claims.

Part 5 of 5: FAQs, examples and key takeaways

Can I use finance for both building works and equipment in one project?

Yes, but you may use different products for each element to keep costs efficient. For example, asset finance for refrigeration and a separate unsecured or fit-out facility for building works and professional fees. Your adviser can combine these under one overall project plan.

Will lenders pay my contractor directly?

Often yes for fit-out facilities, especially on staged projects. Direct-to-contractor payments help control drawdowns and verify progress. You’ll typically provide invoices and evidence before each release.

Do I need to offer security?

Not always; many retailers use unsecured facilities, director guarantees or asset-backed structures depending on the deal size and profile. Larger or more complex programmes may attract secured offers to reduce cost. The right route balances price, flexibility and your risk appetite.

Can I finance design fees and signage?

Yes, soft costs like design, PM and signage are commonly included in unsecured or fit-out facilities. They’re less suitable for classic asset finance, which focuses on tangible, serialised items. Keep your quotes itemised so lenders can approve each category.

What if I don’t trade all year round?

Facilities like merchant cash advances can flex repayments with your card sales. Alternatively, choose a term and repayment profile that fits your seasonal peaks and troughs. A realistic cash flow forecast is key to demonstrating affordability.

Can I use a government-backed scheme?

If eligible, a Growth Guarantee Scheme-backed loan may help support investment, including refurbishments. Scheme availability and criteria can change, and eligibility is subject to lender assessment. Your matched provider will explain current options and requirements.

Key takeaways

Yes — funding can be used for retail refurbishments and fit-outs, including fixtures, equipment, works and professional fees.
Match the finance to the spend: assets to asset finance; mixed works to fit-out or unsecured facilities; seasonal profiles to flexible repayments.
Staged drawdowns and direct-to-contractor payments help manage cash and control risk.
Prepare itemised quotes, landlord approvals, a realistic programme and a cash flow forecast to strengthen your case.
Best Business Loans introduces you to relevant lenders or brokers; you remain in control of any decision.

Next step: complete a Quick Quote for an eligibility check or decision in principle, with zero obligation. We’ll connect you to suitable providers who can discuss terms, timelines and how to structure funding around your build programme. Finance is subject to status, affordability and lender criteria; fees and terms will be set out clearly by the provider before you choose.

Important information

BestBusinessLoans.ai is an independent introducer and does not provide loans directly. Nothing in this page is financial advice; always consider independent professional advice for tax and legal matters. All financial promotions should be clear, fair and not misleading; lenders and brokers we introduce you to are responsible for their regulated communications and offers.