Can I combine equipment finance with a fit-out facility?

Q: Can I use one provider for both the equipment and the fit-out?

Yes. Some lenders offer both under a single umbrella facility, while others will coordinate with a second provider via intercreditor arrangements. The best route depends on project size, sector, security and timing.

Q: Will I need personal guarantees?

Personal guarantees are common for SME finance but not universal. They depend on business strength, security available, and facility type. Your provider will explain any guarantee requirements and limits.

Q: Can I fund design fees and professional services?

Some providers include a portion of soft costs where they are integral to the fit-out, subject to criteria. Clear scopes of work and contracts improve eligibility for funding these items.

Q: What about VAT on staged invoices?

In some cases VAT can be funded temporarily, with repayment on the VAT reclaim cycle, subject to provider policy and eligibility. Otherwise, you will need to cash-flow VAT or time drawdowns to your reclaim.

Q: How long does approval take?

Straightforward equipment finance can be approved quickly, sometimes within days. Combined fit-out and equipment facilities typically take longer due to project checks, documentation and any landlord or compliance approvals.

Short answer: yes — and it can be a smart way to fund a complete premises upgrade

Yes, many UK lenders and brokers routinely structure projects that combine equipment finance with a fit-out facility. Done well, it lets you fund your machinery, technology and tools alongside the refurbishment, joinery, M&E, signage and interior works. The result is a single, joined-up capital plan with staged drawdowns and repayments that match your cash flow.

Whether you operate a restaurant, gym, clinic, retail store, manufacturing unit or warehouse, a combined approach can streamline procurement and reduce upfront strain. It can also consolidate supplier payments and improve cost control. The key is choosing the right facility mix and providers for your sector, timescales and asset profile.

How combined equipment and fit‑out finance typically works

What do we mean by “combined” facilities?

Most projects split funding into two complementary strands. Equipment finance covers assets like machinery, kitchen equipment, point-of-sale systems, IT, or workshop tools. A fit-out facility covers construction, internal rebuild, flooring, lighting, HVAC, electrics, plumbing, décor, joinery, and professional fees.

Some lenders bundle both strands under one umbrella line of credit. Others run two linked facilities with coordinated drawdowns and term lengths. Either way, the aim is to fund the whole project without heavy upfront cash use.

Why combine rather than finance separately?

Combining can reduce admin, align repayments with go-live dates, and give clearer cost visibility. It can also unlock higher total funding because the lender sees the end-to-end business case. For example, your new equipment only develops value once the premises are fitted out and trading.

A joined approach can support staged supplier payments, milestone sign-off, and VAT timing. It also helps ensure critical path items are funded on time, reducing delays and variations.

Common structures lenders use

Option 1: one lender provides an equipment lease or hire purchase plus a separate fit-out loan under a single offer. This simplifies documentation and monitoring. Option 2: equipment comes via asset finance specialists, while a second provider delivers a refurbishment or unsecured business loan.

Some providers offer “project finance” style facilities with a drawdown schedule, supplier direct payments, and retention for snagging. The structure chosen depends on asset values, security, sector risk, and the number of suppliers involved.

At a glance: what can be funded

Equipment: production machinery, kitchen ranges, refrigeration, lifts, diagnostic tools, POS, servers, software licences.
Fit-out: shopfitting, partitions, flooring, ceilings, electrics, plumbing, HVAC, signage, security, counters, joinery.
Soft costs: design, surveys, project management, compliance fees, where eligible with select providers.

Your options: leases, hire purchase, unsecured loans, and staged drawdowns

Equipment finance: leases and hire purchase (HP)

Leases and HP are common for moveable, identifiable assets with a resale market. HP ends with ownership at the final payment, often suiting long-life machinery and vehicles. Finance leases can keep rentals lower, with options at term end.

Lenders usually fund up to a high proportion of the equipment invoice, subject to status. Terms often run 2–7 years depending on asset life and value.

Fit-out: refurbishment loans and asset-backed solutions

Fit-out costs are more service-heavy and less recoverable than equipment. Many providers fund these via unsecured business loans, secured loans, or a capex facility linked to project milestones. Where fixtures and fittings are durable and removable, some costs can be brought under asset finance.

Landlord consent and compliance documents may be required for structural changes. Some lenders will pay suppliers directly on verification of works completed or materials delivered.

Drawdowns, supplier payments, and VAT

Combined facilities often use staged drawdowns aligned to your build programme. This can include deposits, interim progress claims, and final account payments. It protects cash flow and reduces the risk of overpaying ahead of delivery.

VAT can be a pinch point if you are not on a VAT deferral arrangement. Some lenders will fund the VAT temporarily, with repayment on your next VAT reclaim, subject to eligibility.

How to choose the right structure

Match the term to asset life to avoid paying long after the benefit ends.
Use HP or lease for durable equipment; consider a fit-out loan for labour-heavy works.
If coordination matters, consider a single provider with project oversight.

Eligibility, documents, and what lenders look for

Who is most likely to qualify?

Established UK businesses with two years’ trading and positive affordability usually have the widest choice. Multi-site operators, manufacturers, hospitality groups, clinics, and logistics firms are common candidates. Newer firms may still access options where there is strong backing, security, or contracts.

Best Business Loans focuses on established companies and does not currently support start-ups, sole traders, franchises, property finance, or commercial mortgages. If you are unsure where you sit, submit a Quick Quote and we will guide you.

Key documents that strengthen your case

Latest filed accounts and management accounts.
Bank statements, typically 6 months.
Asset schedule and supplier quotations.
Project plan with timeline, cash flow forecasts, and assumptions.
Proof of premises rights and landlord consent where required.
Insurance arrangements and compliance certificates as applicable.

Underwriting considerations for combined funding

Lenders assess the trading benefit of the upgrade, not just the cost. They look for improved capacity, revenue uplift, cost efficiency, or compliance and safety gains. The clearer your business case, the better your chances and potential terms.

Security varies by structure and may include debentures, director guarantees, or fixed charges over assets funded. Affordability is tested against realistic cash flows and stress cases.

Practical tips to prepare

Lock in fixed-price quotes where possible to reduce variation risk.
Sequence critical-path items first to align funding with go-live dates.
Document assumptions for footfall, utilisation, or throughput, not just headline sales.

Benefits, risks, costs, and how to compare offers fairly

Key benefits of combining facilities

One plan, two funding types: equipment and fit-out funded together.
Staged drawdowns and supplier payments reduce upfront strain.
Aligned terms can support smoother cash flow after reopening or launch.

Main risks and how to manage them

Project overruns can push costs above the agreed facility. Build in a contingency and ensure suppliers commit to timelines. Consider retention on fit-out payments until snagging is complete.

Cross-default clauses can link facilities, so read agreements carefully. Where separate providers are used, confirm any intercreditor provisions or ranking of security.

Comparing costs without misleading yourself

Avoid focusing on headline rates alone. Look at the total cost of finance across equipment and fit-out, including fees, documentation, and any early settlement terms. Ensure terms reflect asset life and expected ROI.

If offers use different structures, normalise comparisons over your planned hold period. Consider flexibility to settle early, upgrade, or add assets without heavy penalties.

Compliance-friendly decision points

Check all fees and charges are disclosed clearly and in writing.
Confirm the repayment schedule and any variable elements before you commit.
Understand consequences of missed payments and the security being taken.

How Best Business Loans can help, FAQs, and next steps

How we support your combined funding journey

Best Business Loans is an independent introducer that helps you find suitable providers. We do not offer loans directly and we do not provide financial advice. Our AI-driven platform matches your profile with lenders and brokers experienced in combined equipment and fit-out projects.

You complete a Quick Quote, and we connect you with relevant finance professionals who are actively lending in your sector. You stay in control as you compare options and timelines. It is fast, secure, and free to submit your enquiry.

Is there an internal link for more on fit-outs?

For a deeper look at fit-out funding, see our overview of fit‑out finance. It explains typical costs, eligibility, and how staged payments can work. You can also submit your Quick Quote from there.

FAQs

Can I use one provider for both the equipment and the fit-out?

Yes, some lenders offer both under one umbrella, which can simplify drawdowns and documentation. Others will collaborate via intercreditor agreements. The right route depends on project size, sector, and security.

Will I need personal guarantees?

Personal guarantees are common for SME facilities, but not universal. The need for guarantees depends on credit strength, security available, and facility type. Your chosen provider will explain the rationale and limits.

Can I fund design fees and professional services?

Some providers allow a portion of soft costs to be funded, subject to criteria. Expect tighter scrutiny on non-asset costs. Clear scopes of work and contracts improve eligibility.

What about VAT on staged invoices?

You may be able to include VAT in the facility on a short-term basis, where policy allows. Otherwise you will need to cash-flow VAT or time drawdowns with your reclaim. Discuss VAT timing with your accountant and provider early.

How long does approval take?

Simple asset finance can be fast, sometimes days, while complex fit-outs take longer. Allow time for underwriting, document checks, and any landlord or compliance approvals. Early preparation of documents speeds things up.

What to do now

If you plan a refurbishment and need new equipment, combining facilities can make strong financial sense. Prepare your quotes, timeline, and cash flow forecast, then submit your Quick Quote for matching. We will connect you with lenders or brokers who understand your sector and project type.

Important information and compliance notes

Information on this page is for UK businesses and is not financial advice.
Eligibility, rates, and terms are set by third‑party providers and subject to status.
Security may be required. Non‑payment can affect credit ratings and assets may be at risk.
Best Business Loans acts as an independent introducer and does not lend or broker credit.
Always read provider documentation and consider professional advice before committing.

Summary: key takeaways

You can combine equipment finance with a fit-out facility under one plan.
Use leases or HP for assets, and a fit-out loan for interiors and services.
Staged drawdowns and supplier payments protect cash flow and timelines.
Prepare robust forecasts, quotes, and landlord consents to strengthen your case.
Submit a Quick Quote to be matched with relevant UK providers quickly.

Updated: October 2025