Will refinancing affect my tax position?

Refinancing changes the funding method, not the original nature of the expense. Check with your accountant on capital allowances and VAT treatment.

Can I refinance fit-out costs I’ve already paid for?

Q: Can I refinance if I paid for the fit-out six months ago?

Often yes, provided you can supply itemised invoices, proof of payment and asset details. Many providers consider retrospective funding within 3–12 months, though appetite reduces as the spend ages.

Q: Can labour and design fees be refinanced?

Pure labour and design elements are difficult to asset finance retrospectively because they lack residual value. They may be covered via unsecured business loans, subject to affordability and credit profile.

Q: Does the fit-out have to be brand new?

Recently installed, good-condition items are preferred. Older or heavily worn items may still be considered, but pricing and terms can be less favourable and may require valuation.

Short answer: Yes, often — if the spend is recent, provable, and fits lender criteria

Many UK businesses can refinance fit-out costs they have already paid for, releasing cash back into the company. Lenders call this “retrospective” or “sale-and-leaseback” style funding, and it is usually possible within look-back windows of around 3–12 months, depending on the provider and asset type. Eligibility, rates and terms vary by sector, asset quality, documentation, and whether the works have a clear residual value.

What counts as fit-out costs?

Fit-out spend typically includes refurbishment, shopfitting, M&E, lighting, signage, furniture, joinery, HVAC, specialist equipment and technology. Some items are considered “fixtures and fittings” with residual value, while others are consumables or purely cosmetic. The more tangible and re-sellable the items, the easier they are to refinance.

Who is this for?

This route suits established UK businesses that have self-funded a refit and want to recover working capital. It is commonly used by retailers, hospitality operators, healthcare practices, manufacturers, logistics businesses and professional services. Start-ups and early-stage firms may struggle unless strong security and track record exist.

How Best Business Loans helps

Best Business Loans does not lend directly. We use AI-driven matching and a network of lenders and brokers to connect you with providers who may support retrospective fit-out finance. You keep control, compare options, and decide what is best for your cash flow.

Updated: October 2025

Information on this page is general and for guidance only. Always seek independent advice on tax, accounting and legal matters.

How refinancing past fit-out spend works

Lenders look to convert your already-paid fit-out outlay into a finance agreement that releases cash back to you. The mechanism varies, but the aim is similar: spread the cost over time while improving liquidity now. This can be arranged under asset finance, unsecured business loans, or refinance agreements secured on fit-out items or broader business assets.

Common ways to refinance paid fit-out costs

Asset refinance or sale-and-leaseback on fixtures, furniture and equipment with resale value.
Unsecured business loans for broader refurbishment costs that are not easily asset-backed.
Secured commercial loans using debentures or other security to release capital.
Refinance within an existing asset finance facility or via consolidation with new terms.

Typical look-back periods

Each provider sets their own window. Some allow retrospective funding for invoices up to 3 months old, while others may consider up to 12 months if documentation and asset quality are strong. The older the spend, the harder it becomes to refinance at competitive rates.

What lenders usually want to see

Paid invoices and proof of payment for the fit-out works and items.
Asset lists, serial numbers and pictures where relevant to show condition and value.
Tenancy or ownership evidence for the premises, plus lease term remaining.
Management accounts and bank statements to assess affordability.

Does ownership of the premises matter?

You can refinance fit-out whether you rent or own, but it can influence appetite and terms. If you rent, lenders often prefer a lease length at least covering the finance term. Owning the premises can strengthen your profile, though it is not essential.

Eligibility, what you can refinance, and how much you could release

Eligibility turns on two things: proof of spend and the lender’s confidence that the financed items retain value. Where the fit-out includes clear assets, retrospective asset finance is more likely. Where the spend is spread across labour and consumables, unsecured routes can be a better fit.

Items that are often easier to refinance

Furniture, fixtures, bespoke joinery, counters and seating with good condition.
Technology and equipment used in operations, including EPOS, AV and kitchen kit.
Lighting, HVAC, extraction, and mechanical installations with identifiable value.

Items that can be harder to finance retrospectively

Design fees, labour-only elements and consumables lacking residual value.
De minimis items or mixed invoices without itemised asset detail.
Highly customised build elements that cannot be reused elsewhere.

How much can you release?

On asset-backed refinance, advances might cover a proportion of the original asset value, reflecting depreciation and lender risk. On unsecured loans, the amount depends on affordability, credit strength, and the broader health of the business. Terms can range from 12 to 60 months, though shorter terms often price better.

Timeframes to expect

Simple unsecured options can be faster, sometimes a few days from full application. Asset-backed routes can take longer for inspection, valuation and underwriting. Clean documentation is the biggest accelerator of decisions and drawdown.

Will I need a personal guarantee?

Personal guarantees are common for SMEs, especially where security is limited. Requirements vary, and some options are available without PGs if the asset and business profile are strong. Always review guarantee implications carefully before agreeing.

Costs, risks, and what to consider before you refinance

Refinancing converts sunk fit-out costs into monthly repayments, which improves cash flow but adds financing costs. The trade-off can be attractive if it frees capital for growth, inventory, or marketing. It is essential to compare the total cost of finance against the benefits to your business.

Pricing and fees to budget for

Interest rate or fixed cost of credit varies by product and risk profile.
Arrangement, documentation or valuation fees may apply for asset-backed deals.
Early settlement terms vary; check whether discounts or fees apply if repaid early.

Risks and suitability

If the agreement is secured, you risk the asset on default. If unsecured with a personal guarantee, you may have personal exposure if the business cannot pay. Always check affordability, especially if the refit has not yet delivered the expected return.

Tax and accounting points

Refinance does not change the original nature of your spend, but it alters your cash flow profile. Capital allowances and VAT treatment follow the original invoices and your accounting policies. Seek guidance from your accountant to align financing with your tax position.

Impact of lease length and break clauses

Lenders prefer that your lease extends beyond the finance term, without imminent break risks. Short leases can limit appetite or shorten terms. If you plan to move premises, discuss with your broker early.

Compliance and transparency

Financial promotions should be clear, fair and not misleading. Any finance you take is subject to lender approval, status, and affordability checks. Terms, rates and availability are not guaranteed and may change.

How to explore retrospective fit-out finance with Best Business Loans

We help you understand which routes fit your situation and connect you with lenders and brokers who actively support UK fit-out funding. Our AI-powered process filters options so you do not waste time on unsuitable providers. Submitting an enquiry is free and without obligation.

Fast steps to get started

Complete a Quick Quote: share details of your business, spend, and desired amount.
Upload documents: paid invoices, proof of payment, asset list and photos where relevant.
We match you: our system introduces you to suitable lenders or brokers.
Compare offers: review structures, terms, and total cost of credit carefully.
Decide and proceed: you choose the route that aligns with your cash flow and risk tolerance.

What a strong application looks like

Clear narrative for why you want to refinance and how the funds will be used.
Up-to-date management accounts, bank statements, and VAT returns if applicable.
Lease or ownership details for your premises and remaining term.

Looking for more context?

For a deeper overview of funding options to refurbish or refit premises, read our guide to fit-out finance. It explains how both prospective and retrospective structures can work. You can then submit a Quick Quote to check indicative eligibility.

Who we can and cannot support

We focus on established UK companies across sectors like retail, hospitality, manufacturing, logistics and healthcare. We do not currently support start-ups, sole traders, franchises, property finance or commercial mortgages. If unsure, send an enquiry and our team will advise whether we can help.

What to expect after you enquire

You will receive an introduction to one or more finance providers who may assist. They will contact you to discuss the case, request any missing documents, and provide next steps. You remain in control and under no obligation to proceed.

Alternatives, FAQs, and key takeaways

If full retrospective refinance is not viable, you still have options. You could seek a revolving credit facility, an unsecured cash flow loan, or equipment finance for any new items still to be purchased. Some businesses mix products to balance speed, cost, and security.

Alternatives to consider

Unsecured business loan to release working capital without asset security.
Asset finance for any remaining equipment still to be bought.
Invoice finance to unlock cash tied up in receivables.
Refinance of existing business assets to improve cash flow.

FAQs

Can I refinance if I paid for the fit-out six months ago? Often yes, if you have strong documentation and identifiable assets. Many lenders accept look-backs up to 6–12 months, but appetite reduces as time passes.

Can labour and design fees be refinanced? Pure labour and design fees are harder to refinance because they lack residual value. They may be covered via unsecured loans subject to affordability and credit profile.

Does the fit-out have to be brand new? Recently installed and in good condition is best. Older items may be considered with valuation and suitable terms, but pricing and appetite may be less favourable.

What if the original supplier won’t cooperate? You mainly need itemised invoices and proof of payment, not ongoing supplier involvement. Asset lists and photos help evidence condition and value.

Will this affect my tax position? Refinancing changes how you fund the spend, not the original nature of the expense. Always consult your accountant to confirm capital allowances and VAT treatment.

Key takeaways

Yes — many UK businesses can refinance already-paid fit-out costs, especially within 3–12 months.
Asset-backed items with clear residual value are easier to fund retrospectively.
Strong documentation speeds decisions and can improve terms.
Compare structures carefully, weighing total cost against cash flow benefits.
Best Business Loans connects you with suitable providers so you can decide with confidence.

Start your eligibility check

It takes minutes to submit a Quick Quote and share your fit-out details. Our AI matching connects you to providers aligned to your sector, spend type and timelines. There is no obligation to proceed, and your information is handled securely and confidentially.

Important information

Best Business Loans is an independent introducer and does not offer loans directly. Finance is subject to status, provider criteria and affordability checks, and may require security or personal guarantees. This article is general information, not financial advice or a recommendation.

About Best Business Loans

BestBusinessLoans.ai helps established UK companies find suitable finance providers quickly. We combine data-led matching with a trusted network of lenders and brokers across asset finance, unsecured lending, invoice finance and refinance. Our goal is to make business finance clearer, faster and more confident — without promising the lowest rate every time.

Ready to explore refinancing your fit-out? Complete your Quick Quote for an initial eligibility check and introductions to relevant providers. You stay in control of the process at every step.