Can I finance factory fit-outs, safety compliance and quality assurance upgrades?

Short answer

Yes, many UK businesses finance factory fit-outs, safety compliance and quality assurance upgrades using commercial funding. Options commonly include asset finance, fit-out finance, equipment leasing, unsecured term loans and specialist facilities tied to your project. Best Business Loans helps you explore what’s suitable and connect with relevant lenders or brokers to move forward.

What counts as a financeable factory upgrade?

Most lenders and brokers will consider finance for tangible improvements that grow capacity, reduce risk or boost standards. That can include factory refits, production line reconfiguration, mezzanines, flooring, lighting, welfare areas and energy-efficiency upgrades. It also covers safety and quality investments such as guarding, extraction, fire systems, machine safety upgrades, metrology, testing rigs and digital quality control tools.

Compliance-driven spend is often eligible if it relates to recognised standards or regulations. Typical examples include Health and Safety Executive-led improvements, PUWER and LOLER compliance, ATEX-rated systems, BRCGS or SALSA certification needs in food, and ISO 9001/14001/45001 upgrades. Calibration equipment, traceability software and inspection systems tied to ISO or industry standards can also be in scope.

Soft costs may be included depending on the product type. Installation, commissioning, software licences, staff training and project management can sometimes be bundled into a finance agreement if clearly linked to the asset or upgrade. Always check the provider’s criteria because some will fund only the hardware element.

Eligible cost examples

• Fit-out works: partitions, HVAC, lighting, power, racking, flooring, mezzanines
• Safety upgrades: machine guarding, extraction, fire detection and suppression, interlocks
• Quality upgrades: CMMs, vision systems, test benches, barcode/traceability systems
• Software and systems: QMS, MES, SCADA, maintenance and calibration platforms
• Ancillaries: compressors, chillers, dust and fume control, cleanroom improvements

For manufacturers specifically, you can learn more about sector routes to funding via our page on manufacturing business loans.

Finance routes for fit-outs, safety and QA projects

Different project elements can suit different funding structures. Asset finance is widely used to acquire plant and equipment without heavy upfront costs. Hire purchase helps you own the asset at the end, while finance leases spread costs and may preserve headroom versus unsecured borrowing. Many providers also offer “fit-out finance” that bundles various works and installation into one facility.

Unsecured business loans can be appropriate for mixed-scope projects where not all spend is easily asset-backed. They generally rely on business performance and credit profile rather than specific equipment security. Revolving credit facilities can support phased projects, allowing drawdowns against milestones or invoices as the programme progresses.

Common funding options to explore

• Hire purchase or finance lease for machinery, testing, metrology and automation
• Fit-out finance for construction works, services, racking, and specialist contractor costs
• Unsecured term loans for compliance programmes and QMS digitalisation
• Equipment refinancing to release equity in existing assets and fund new upgrades
• Invoice finance to unlock working capital during a retrofit or changeover

Government-backed support

Subject to eligibility and provider participation, some projects may be funded under the UK’s Growth Guarantee Scheme. Providers make their own lending decisions and not all project types will be eligible. Your matched lender or broker can explain whether a government-backed option may be available for your circumstances.

Best Business Loans does not offer finance directly. We help you identify relevant options and introduce you to providers who may be able to assist, so you can compare and decide with confidence.

What lenders look for and how to prepare a solid case

Lenders want to see that the project is necessary, planned and affordable. That means clear scope, itemised costs, a timeline with milestones and a realistic cash flow plan during installation or downtime. If your project is driven by safety or quality compliance, referencing the standard and the risk reduction achieved can strengthen your case.

Evidence of impact is useful. Show how the upgrade reduces scrap, improves throughput, enhances on-time delivery or lowers energy use. Demonstrate the link to certifications such as ISO 9001, BRCGS, IATF 16949, or to HSE and insurer recommendations. For multi-phase programmes, a staged funding approach with supplier quotes and milestone invoices can help.

Typical information to have ready

• Latest filed accounts and recent management figures
• Business overview, ownership and key contracts
• Project specification, quotes and installation schedule
• Compliance drivers and targeted standards
• Cash flow forecast and repayment considerations

Common eligibility themes

• Time trading and profitability profile (lenders’ criteria vary)
• Credit conduct and existing borrowing
• Asset quality, resaleability and supplier credibility
• Security and guarantees: may be required, depending on product

Rates, limits and terms vary by lender, sector and asset. Providers may conduct credit checks and affordability assessments. There is no guarantee of approval, and you should review all terms and fees before proceeding.

Choosing the right funding approach for your project

Start with use-case and cash flow. If you want ownership of a machine with a long useful life, hire purchase may suit. If you want flexibility or intend to upgrade regularly, a finance lease could be preferable. For broad refurbishment that mixes assets and works, fit-out finance or an unsecured loan may be better aligned.

Consider tax and accounting treatment with your accountant. Capital allowances, including the UK’s “full expensing” for qualifying plant and machinery and the Annual Investment Allowance, can influence the overall cost of ownership. Software and installation costs may be treated differently; professional advice ensures the structure matches your objectives.

Steps to move forward

1. Define scope: list assets, works, compliance targets and outcomes.
2. Collect quotes: include installation, software and training if applicable.
3. Model cash flow: allow for downtime and phased payments.
4. Choose structure: asset-backed, fit-out finance, or unsecured loan.
5. Submit a Quick Quote: get matched to providers who understand your sector.

Timeline and delivery

Conditional offers can be relatively fast for straightforward equipment purchases, subject to underwriting and supplier details. Fit-out projects with multiple contractors may take longer to structure and could use staged drawdowns. Build lead times, commissioning and validation into your planning to avoid cash flow strain.

How Best Business Loans can help you

Best Business Loans is a UK introducer that uses AI matching and a lender/broker network to connect established businesses with relevant funding providers. Tell us your project goals, and we’ll help point you to finance routes commonly used for factory fit-outs, safety compliance and quality assurance upgrades. You decide which option, if any, to pursue.

Our platform aims to save you time and reduce guesswork by matching your needs with providers active in your sector. Whether it’s asset finance for machinery, fit-out finance for refurbishment or a term loan for compliance upgrades, we’ll introduce you to partners who may be able to help. You remain in control throughout and there’s no obligation to proceed.

Why businesses use us

• AI-driven matching to relevant lenders and brokers
• Coverage across asset finance, fit-out finance and working capital solutions
• Transparent approach: we don’t promise the cheapest rate, we aim for fit and reliability

Get started in minutes. Complete a Quick Quote to check potential eligibility and be introduced to suitable providers. It’s fast, secure and designed to help you make an informed decision.

FAQs: Financing factory fit-outs, safety compliance and QA upgrades

Can I finance both equipment and building works in one package?

Yes, some providers offer fit-out finance that bundles multiple elements into a single facility. Others may prefer to fund assets via hire purchase or lease and treat building works under a separate loan. Your matched provider can advise which route fits your scope.

Will lenders fund software and training linked to a QMS or MES?

Often, yes, if they are integral to the asset or compliance outcome. Some lenders include software, installation and training as part of the financed package. Policies vary, so submit detailed quotes showing how each cost supports the upgrade.

Can I include installation, commissioning and downtime costs?

Installation and commissioning are commonly included, subject to lender rules. Downtime costs are harder to finance directly but can be supported via working capital facilities. Your cash flow plan should account for contingency during changeover.

What about second-hand or refurbished equipment?

Many lenders will consider quality used equipment from reputable suppliers with clear provenance. The asset’s age, condition and resaleability affect terms and eligibility. Inspection reports and warranties can help.

How quickly can I get a decision?

Straightforward asset finance can be assessed quickly once documents and supplier details are in place. Complex fit-outs with multiple contractors may require more diligence and staged funding plans. Submitting complete information speeds up the process.

Can I combine funding types for one project?

Yes, businesses often mix asset finance for equipment with an unsecured loan or revolving facility for ancillary works. Combining products can align funding with each cost category. Your matched provider can structure a blended solution.

Does financing compliance and QA improvements help insurance or audits?

While lenders don’t set insurance terms, safety and quality upgrades often support better risk profiles. Documented improvements can assist with audits and certifications. Always check with your insurer and auditor for specific requirements.

Will a credit check be required?

Yes, providers usually conduct credit and affordability checks. Applications may affect your credit profile, and approval is not guaranteed. Review all terms and consider independent advice if needed.

Is this suitable for start-ups or sole traders?

Best Business Loans focuses on established UK companies and does not currently support start-ups or sole traders. Lender criteria vary, so matched providers can confirm eligibility. We currently help limited companies and similar business structures.

Key takeaways

• You can finance factory fit-outs, safety compliance and QA upgrades through several funding types.
• Asset finance, fit-out finance and unsecured loans each suit different parts of a project.
• Clear scope, compliance rationale and cash flow planning strengthen your case.
• Best Business Loans introduces you to suitable UK providers without obligation.
• Always review terms carefully and seek professional advice where appropriate.

Important information and compliance notes

Best Business Loans is an independent introducer. We do not provide loans or financial advice and we are not a lender. Any finance is subject to approval by the provider, their terms, eligibility and affordability assessments.

Your application may involve credit checks and security or guarantees may be required. Rates, fees and terms vary by provider and are not guaranteed. The information on this page is general and not advice; consider consulting your accountant or adviser, especially on tax treatment and capital allowances.

We aim to ensure our information is fair, clear and not misleading and that it supports informed decisions. Advertising on our site complies with applicable UK regulations and platform policies to the best of our knowledge. Last updated October 2025.

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