Can I combine multiple purposes (eg, equipment plus refurbishment) in one facility?
Short answer: Yes — you can often fund multiple purposes in a single business finance facility
Many UK lenders allow a single facility to cover combined needs such as equipment, refurbishment, and working capital. The exact structure depends on your business profile, security, and how clearly each cost can be evidenced. In practice, you may use one term loan, or a blended solution where one facility leads and others support.
Bundling purposes into one agreement can simplify cash flow and speed up delivery, but it is not always the cheapest or most flexible route. Some scenarios are better served by splitting into specialist products, for example asset finance for machinery alongside a separate fit-out or refurbishment loan. The right route is driven by what you are funding, how quickly you need it, and the documents you can supply.
Best Business Loans does not lend or offer advice. We help you explore appropriate providers and structures via our AI-driven matching and introducer network, so you can compare your options before you decide. Submit a Quick Quote to check eligibility without obligation.
How multi-purpose business finance typically works
One facility, several line items
With a general-purpose term loan, lenders may release a single lump sum that covers several cost items. That can include equipment, refurbishment materials, labour, and contingency. Your offer may reference the combined purpose across defined budget lines.
Some lenders prefer staged drawdowns to match a refurbishment schedule or delivery of equipment. This reduces interest costs because you only pay for funds as you use them. It also gives the lender confidence that funds are deployed as agreed.
For asset-rich projects, security can be mixed too. That might include debentures over company assets, director guarantees, or charges over specific equipment once installed. The security requested depends on loan size, sector, and risk profile.
Common structures used by UK lenders
General term loan: A fixed-sum, fixed-term agreement used for multiple purposes when amounts and timelines are known. Useful for combined refurbishment and equipment spends.
Asset finance with a top-up: Finance the machinery or vehicles under hire purchase or lease, then add a separate unsecured top-up for fit-out works. This can lower the blended cost of funds.
Revolving credit line: A flexible facility that you draw down and repay as invoices fall due. Works well when project timings are uncertain or phased.
Refurbishment or fit-out finance: A facility designed for premises upgrades, often allowing staged payments to contractors. Equipment can sometimes be included if clearly itemised.
Mind the paperwork
Lenders will expect quotes, supplier invoices, contracts, and a schedule of works. They want to see exactly what is being funded and when. Clear documentation helps them approve mixed-purpose requests in one facility.
If VAT forms a meaningful part of the spend, some lenders allow the facility to include VAT. Others may exclude VAT and expect it to be reclaimed separately via HMRC.
When to bundle purposes — and when to split them
Reasons to bundle into one facility
Simplicity: One set of terms, one payment, and one completion timeline. This reduces admin for your finance team and suppliers.
Speed: Mixed-purpose term loans can move quickly if documents are ready. That helps you avoid delays between project phases.
Cash flow control: A structured drawdown schedule can align borrowing with project milestones. This avoids borrowing more than needed too early.
Reasons to split into two or more facilities
Cost optimisation: Asset finance usually offers lower rates than unsecured loans. Splitting out machinery can lower overall interest costs.
Security alignment: Equipment can secure itself under hire purchase, while refurbishment may need an unsecured or debenture-backed loan. Splitting can suit lender criteria.
Flexibility: Equipment and fit-out timelines often diverge. Separate facilities let you pause or accelerate one track without affecting the other.
Quick decision guide
If your equipment is a significant part of the budget and has a clear serial number or asset tag, asset finance is often best. If most of your spend is labour, materials, or professional fees, a general-purpose or fit-out facility may be more suitable. If your project is complex, a blended approach is common and can still feel “like one solution” operationally.
For building trades, split structures are especially common. You might fund vans and plant on asset finance while using a separate line for working capital or premises fit-out. For more sector insight, see our page on building services loans.
What about existing finance?
Some lenders can refinance current agreements and include new spend in one consolidated facility. This may reduce monthly costs or extend the term. Others prefer to keep good asset finance in place and add a new top-up just for the refurbishment.
Refinance can be helpful if the goal is to simplify repayments. Be mindful of early settlement charges and total cost of credit before consolidating.
What lenders look for with mixed-purpose funding
Core eligibility and assessment points
Trading profile: Lenders assess time in business, turnover, profitability, and your credit file. Sector experience strengthens cases for refurbishment or expansion.
Use of funds: The clearer the purpose, the better. Provide itemised budgets, quotes, schedule of works, and supplier details.
Security and structure: Expect discussions about guarantees, debentures, and asset-backed options. Right-sizing the structure is key to acceptance.
Typical documents that speed approval
- Up-to-date management accounts and last filed statutory accounts.
- Business bank statements (usually 3–6 months).
- Quotes or pro-forma invoices for equipment and materials.
- Fit-out plans, schedule, and contractor details if refurbishing.
- Asset list and serial numbers for machinery, if relevant.
- Proof of premises (lease or ownership) where works occur.
Structuring tips to support a combined request
Ring-fence the equipment spend so it can be asset financed or secured separately if needed. This gives lenders flexibility and may lower pricing. Present a realistic timeline showing when each cost will fall and how your drawdown should align.
Include contingencies in your budget. Lenders appreciate prudent planning, and it reduces the risk of a shortfall mid-project. If VAT is significant, clarify whether you want it included or excluded from the facility.
Industry nuances that can help or hinder
Manufacturing, engineering, and logistics often see favourable terms on equipment-heavy projects. Care homes, hospitality, and retail can also secure support where refurbishment demonstrably improves revenue and compliance.
Heavily bespoke or non-recoverable spend (like design fees) may be viewed as higher risk. Good collateral or strong trading history can offset this in the underwriting.
Speed, cost, and flexibility — choosing trade-offs
Unsecured term loans can move fast but may cost more. Asset finance can be cheaper but needs supplier documentation and serialised kit.
Revolving credit lines help when delivery dates are fluid. They are strong companions to fixed-scope equipment finance when projects are phased.
Practical steps to prepare a strong application
Step-by-step preparation checklist
- Define your outcomes: list every purpose — equipment, refurbishment, fees, contingency.
- Split spend into “asset-financeable” and “general costs” for flexibility.
- Collect quotes, schedules, and supplier details with clear amounts and dates.
- Update your management accounts and prepare recent bank statements.
- Decide if you prefer one facility or are open to a blended approach.
- Consider security appetite: guarantees, debenture, or asset-backed options.
- Plan cash flow: model repayments against seasonality and revenue uplift.
- Submit a Quick Quote to be matched with providers aligned to your structure.
Common pitfalls to avoid
Requesting a single lump sum without a drawdown plan can raise concerns. Show your timing for supplier payments to support staged release if needed.
Underestimating refurbishment extras is common. Include a buffer and explain how you will manage variations. This builds lender confidence.
Mixing business and personal purchases under one facility will reduce approval odds. Keep the purpose wholly business-related and well evidenced.
Cost clarity and transparency
Ask providers for total cost of credit and any fees. Understand early settlement terms and potential charges for variations.
If comparing a bundled option with split facilities, calculate a blended APR or total repayment. Choose the approach that supports sustainability, not just the headline rate.
After approval: deploying funds responsibly
Keep invoices and receipts for all funded items. Some lenders may request post-completion evidence.
Implement a simple tracking sheet for spend against purpose lines. This helps with future funding requests and internal audits.
How Best Business Loans can help — and important disclosures
Smart matching for multi-purpose funding
Our platform analyses your profile and purpose mix to surface providers who accept combined uses. You will only be introduced to lenders or brokers that appear relevant to your scenario and sector.
We aim to save you time by aligning structure early — for example, pairing asset finance for machinery with a term loan for fit-out. You stay in control and choose what to pursue.
It is free to submit a Quick Quote, and there is no obligation to proceed. We do not claim to have every lender, nor can we guarantee the lowest rate.
Clear, fair, and not misleading
All finance is subject to status, affordability, and provider criteria. Terms, amounts, and rates vary by lender and may change over time.
Best Business Loans is an independent introducer. We do not provide financial advice and we do not lend.
If you proceed with a lender or broker, they may charge fees, and we may receive an introducer commission. You will receive their terms before you decide.
Quick FAQs
Can I include both equipment and refurbishment? Yes, many lenders allow this in one facility, provided the spend is clear.
Will it affect pricing? Mixed purposes can influence rate and security. Splitting asset finance and fit-out can reduce blended costs.
Do I need quotes and a schedule? Yes, itemised quotes and a timeline help significantly with underwriting.
Can I include VAT? Sometimes. It depends on the provider and your VAT position.
What if I already financed the kit? Refinance or a top-up may be possible, subject to terms and economic sense.
Key takeaways
- You can often combine equipment, refurbishment, and other purposes in one facility if the spend is well documented.
- Bundling is simple and fast, but splitting into specialist products can lower the overall cost.
- Itemised quotes, a schedule of works, and clear cash flow plans increase approval odds.
- Consider staged drawdowns to pay interest only when funds are used.
- Best Business Loans can match you with suitable UK lenders and brokers for multi-purpose funding.
Updated: October 2025 — UK English. Information is general and not financial advice.
About Best Business Loans
BestBusinessLoans.ai connects established UK companies with suitable lenders and brokers using AI-led matching. We focus on commercial funding for trading businesses and do not currently support start-ups, sole traders, franchises, property finance, or commercial mortgages.