Best Business Loans

How much can I borrow for a shop fit-out or refurbishment?

The quick answer, typical ranges, and what lenders look for

You can typically borrow between £10,000 and £500,000 for a shop fit-out or refurbishment, with larger, secured facilities sometimes reaching £2 million+ for multi-site or complex projects. The amount you can borrow depends on your turnover, trading history, profitability, credit profile, security available, and the strength of your project plan and cost breakdown. Most UK lenders will also consider how the refurbishment improves revenue, margins, and customer experience.

As a guide, unsecured options often fund £10,000–£250,000 over 6–60 months, while asset-backed or structured fit-out finance can support £50,000–£2,000,000+ over 1–7 years, depending on the asset mix and collateral. Card-revenue or revenue-linked options may support up to one month’s average card turnover, sometimes more for strong performers. Each provider sets its own rules, so outcomes vary by sector and risk profile.

Best Business Loans does not lend money directly. We help UK businesses navigate the market and connect with suitable finance providers and brokers for shop fit-outs and refurbishments. To explore providers aligned to your sector and spend plan, see our guide to fit-out finance options.

Typical funding needs by project scope

Light refreshes (decor, lighting, minor joinery) often run to £15,000–£75,000 for single sites. Mid-scale store upgrades with brand refresh, flooring, shelving, and POS can fall in the £50,000–£250,000 range. Full-scale refits involving HVAC, M&E, signage, frontage, and specialist fit-outs can exceed £150,000–£1,000,000+ depending on size, location, and specification.

Lenders will want quotes, a clear budget, and a time plan that minimises downtime. A contingency of 10–15% is common to cover unforeseen works, landlord requirements, or supply variations.

How long does funding take?

Unsecured term finance can complete in a few business days once documents are supplied. Asset or structured fit-out funding often takes 1–4 weeks to arrange, depending on complexity and valuations. Start earlier than you think to align funding drawdowns with contractor milestones.

Factors that determine how much you can borrow

Every lender sizes affordability differently, but several core factors recur across the market. Understanding these can help you estimate a realistic borrowing band before you seek quotes. It also helps you prepare documents to speed up decision making and improve outcomes.

Your business profile and financials

Turnover, gross margin, and net profit help lenders judge debt capacity. As a rough guide, many providers are comfortable when total debt service costs sit within a prudent share of free cash flow. Seasonal businesses will be assessed across a full year, not just peak months.

Trading history matters because it shows resilience. Lenders typically prefer businesses with 12–24 months of trading or more, although exceptions can exist for strong collateral or established multi-site operators. Management accounts and bank statements support the story behind filed accounts.

Credit strength and security

Stronger credit profiles may access higher limits, longer terms, and lower rates. Where available, tangible assets such as equipment, vehicles, or a debenture can increase headroom and reduce cost. Personal guarantees are common in SME lending and can be required to unlock higher amounts.

Project quality and commercial logic

Lenders favour well-structured projects that improve trading capacity or customer experience. A clear narrative—such as rebranding to lift conversion, upgrading layout to increase average basket size, or adding hospitality seating to raise dwell time—can justify higher funding. Professional drawings, specifications, and fixed quotes add credibility.

Loan purpose and spend breakdown

Spend that creates durable value—such as shelving, counters, refrigeration, lighting, or compliant M&E—can be easier to finance than purely cosmetic items. Many providers will also fund soft costs like design, professional fees, and project management when part of a coherent fit-out budget. VAT can sometimes be supported with a short-term facility.

Sector and location dynamics

Retail, food and beverage, health and beauty, and automotive retail each carry different risk profiles and benchmarks. Footfall, lease length, and local competition can be considered. Provide a location overview and any landlord approvals up front to reduce friction.

How lenders size a fit-out loan in practice

Different products use different sizing methods, but the aim is consistent: to align debt with affordability and recoverability. Below are common approaches you may encounter in the UK market, across unsecured, asset-backed, and revenue-linked funding.

Unsecured term loan sizing

Unsecured lenders often look at annual turnover, profitability, and average banked revenue. Facilities may range from £10,000–£250,000 for established SMEs, with some providers going higher for strong applicants. Total monthly repayments across all debts should fit comfortably within historic and projected cash flow.

Expect to provide 6–12 months of business bank statements, last filed accounts, current management accounts, and a project budget. Clear evidence of funds usage can unlock more competitive terms.

Asset finance and structured fit-out funding

Where a meaningful portion of the spend is on identifiable assets—such as refrigeration, counters, kitchen equipment, security systems, or display units—asset finance can fund a high percentage of cost. Depending on the asset class and provider, this can be 70–100% of the invoice value.

For blended fit-outs with building works and fixtures, some providers offer tailored structures combining asset finance, unsecured elements, or staged drawdowns. Terms can run 2–7 years when secured over equipment with a long useful life.

Revenue-based and card turnover funding

For card-heavy retailers, merchant cash advance style solutions can advance a sum based on monthly card turnover. Typical amounts can be up to one month’s average card receipts, sometimes more for strong performers. Repayments flex as a small percentage of daily card takings, so they rise and fall with sales.

This approach can be quicker to arrange and does not require fixed monthly repayments, but the effective cost can be higher than secured options. It may suit short, time-sensitive refurbishments or phased improvements.

Working capital and VAT support

If VAT is payable on project invoices, short-term VAT facilities or revolving credit can help bridge the gap until reclaim. Similarly, a flexible line can cover overruns or inventory build for reopening. Using the right instrument for each cost can reduce total interest.

What is realistically affordable for your shop—and how to estimate it

Start with a bottom-up budget. Gather three like-for-like quotes per trade, including materials, labour, waste, and access costs. Add design, project management, approvals, signage, POS upgrades, and a 10–15% contingency for unknowns or compliance tweaks.

Build a simple affordability view

Project your cash flow for the next 12–24 months, including any closure period and ramp-up after reopening. Model loan scenarios at different terms and amounts, and test sensitivity to lower sales or higher costs. Choose a structure that preserves headroom through seasonality.

As a rule of thumb, many SMEs keep total monthly debt service under a prudent share of predictable free cash flow. Align your repayment term with the life of the assets—longer for durable installations, shorter for fast-depreciating elements.

Reality-check borrowing bands by business size

Micro or single-site retailers with £200k–£600k turnover might see sensible borrowing bands of £25k–£100k, depending on margins and stability.
Growing multi-site operators with £1m–£5m turnover might support £100k–£500k, split across term and asset finance.
Established regional chains with stronger balance sheets and collateral can sometimes structure £500k–£2m+ across multiple facilities.

These are indicative only. Each provider’s underwriting is different, and past performance, lease length, and project ROI will influence outcomes. Always compare options on total cost, term, security, and flexibility, not rate alone.

Ways to increase how much you can borrow

Provide detailed quotes, drawings, and a timeline with milestones and payment schedules.
Evidence uplift: footfall data, conversion goals, layout improvements, or added capacity.
Offer security where available or consider a partial deposit to de-risk the structure.
Split funding: asset finance for equipment; term finance for building works; short-term facility for VAT and contingencies.

Compliance and clarity help

Make sure landlord consents, planning, and compliance documents are ready. Clear, accurate, and complete information reduces back-and-forth and supports a higher-quality decision. The more transparent the plan, the easier it is for lenders to assess affordability.

How to prepare, apply confidently, and what to expect next

Best Business Loans helps you connect with UK lenders and brokers who actively support shop fit-outs and refurbishments. We do not provide loans ourselves; we streamline your route to relevant funding providers. Submitting a Quick Quote is free and without obligation.

What to prepare before you enquire

12 months of business bank statements and last filed accounts, plus recent management accounts.
Project budget, quotes, drawings, and a timeline with staged payments.
Lease details, landlord approvals, and any planning or building control documents.
Evidence of card turnover (if using card-linked finance) and VAT position.

Packaging your enquiry this way can improve accuracy and speed. It also helps you avoid borrowing more than you need while safeguarding cash flow. Lenders value clarity because it reduces project and execution risk.

Fair, clear, and not misleading

Finance is subject to status, terms, and provider criteria. The figures and ranges above are illustrative, not a quote or offer, and actual outcomes will vary by provider and your circumstances.

We encourage all users to consider total cost of credit, fees, security, and early repayment terms before proceeding. If you are unsure, consider seeking independent financial or accounting advice.

FAQs: Shop fit-out borrowing

Can I borrow 100% of my fit-out cost?
Some providers can fund close to 100% if the asset mix and affordability support it. Many structures combine a deposit with finance to balance risk and cost.

How quickly can I get funds?
Unsecured options can complete in days once documents are provided. Asset-backed or staged fit-out funding can take 1–4 weeks depending on complexity.

Will lenders fund soft costs and VAT?
Yes, many will fund design and professional fees as part of a cohesive budget. VAT may be supported with a short-term facility if appropriate.

Do I need collateral?
Not always. Unsecured options exist, though security can improve pricing and limits. Personal guarantees are common in SME lending.

Can seasonal retailers get refurbishment finance?
Yes, but lenders will look across the full year. Flexible or revenue-linked repayments can help match seasonality.

Key takeaways

Most UK SMEs can borrow £10k–£500k for fit-outs; secured or structured cases can reach £2m+.
Your borrowing capacity depends on turnover, profitability, credit, and a robust project plan.
Match finance type to spend: assets with asset finance, works with term loans, and VAT with short-term facilities.
Strong documentation and a clear ROI case can improve limits and terms.
Best Business Loans connects you to relevant UK funding providers—fast, fair, and without obligation.

Ready to explore your options? Complete a Quick Quote to check potential eligibility and be matched with appropriate providers for your sector and project.

Important information

Best Business Loans is an independent introducer and does not offer credit or give regulated advice. Any finance is provided by third-party lenders or brokers and is subject to status, affordability, and terms.

Information on this page is for UK trading businesses and is intended to be fair, clear and not misleading. Figures are illustrative and not a guarantee of funding or cost.

We do not currently support start-ups, sole traders, franchises, property finance, or commercial mortgages. Over 18s only. Always read the terms of any agreement before you sign.

About Best Business Loans

BestBusinessLoans.ai helps established UK businesses find suitable finance providers for working capital, equipment, vehicles, and fit-out projects. We combine AI-driven matching with a network of lenders and brokers to save you time and improve your finance search.

Updated October 2025. If you have questions before enquiring, email hello@bestbusinessloans.ai.