Best Business Loans

Can design, project management, and installation costs be included?

The short answer and why it matters

Yes, many UK business finance providers can include design, project management, and installation costs within a funding package, especially for fit-outs, refurbishments, and equipment-led projects. These are often called “soft costs” and, depending on the product and lender, they can be funded in full or up to a percentage cap. The exact treatment varies by finance type, supplier set-up, and your business profile.

Including soft costs can protect working capital and align cash outflows with project milestones. For multi-supplier projects, lenders may fund on a staged-drawdown basis, paying installers and contractors directly against approved invoices. Where soft-cost cover is capped under one facility, a blended approach using multiple products is often used.

Best Business Loans is an introducer that helps established UK businesses find suitable providers for these scenarios. We don’t lend directly or offer advice, but we can connect you with lenders and brokers who understand your sector and project. That means a clearer route to funding soft and hard costs together with fewer false starts.

What do lenders mean by “soft costs”?

Soft costs usually refer to non-tangible or non-asset elements tied to delivering a project. Typical examples include design fees, project management, consultancy, building control and professional services, site preparation, delivery, installation, commissioning, and training. In a fit-out, this may also cover surveys, planning fees, and compliance documentation.

When are soft costs easiest to fund?

Soft costs are most straightforward under dedicated fit-out finance, or within staged equipment projects where installation and commissioning are integral to making the asset operational. In these cases, lenders view those costs as essential to the project outcome rather than optional extras. Strong documentation that ties costs to a defined scope helps approval.

Which finance products can include these costs?

Different funding types handle soft costs differently. Fit-out finance is typically the most flexible for end-to-end projects involving multiple trades and professional fees. Asset or equipment finance can include installation and commissioning, with variable limits for design and project management.

Unsecured business loans may cover a broader mix of costs, including professional services and internal labour, if clearly linked to the project. Invoice finance can help fund ongoing cash flow alongside a project, but it’s not tailored to design or installation specifically.

Some lenders also offer facilities aligned with government-backed guarantees (for example, via the British Business Bank’s schemes) that may accommodate a mix of soft and hard costs. Final eligibility and scope are lender-specific and subject to change.

Fit-out finance (most inclusive for complete refurbishments)

Fit-out finance often covers design, project management, and installation along with fixtures, fittings, furniture, M&E, flooring, partitioning, lighting, signage, security, AV and IT infrastructure. Drawdowns can be staged to match contractor milestones, supplier deposits, and retentions. For more detail, see our page on fit-out finance.

Equipment and asset finance (lease or hire purchase)

For machinery, technology, or vehicles, installation and commissioning are commonly included because they’re essential to getting the asset working. Design or PM fees may be included up to a set percentage if they are integral to the asset’s deployment. Purely advisory or standalone consultancy is less likely to be eligible under asset finance alone.

Unsecured business loans

Unsecured term loans can cover a wide range of project costs, including design and PM, especially when invoices and scopes of work are provided. Some lenders will fund staged payments if the project is clearly defined. Rates and terms depend on financial strength, trading history, and the projected benefit of the project.

Blended solutions

Many projects are funded with a blend (e.g., asset finance for equipment, plus an unsecured loan for soft costs). Lenders sometimes cap soft costs within asset finance at 10–30%, so a second facility can bridge the gap. Best Business Loans can help you explore and compare blended options through relevant providers.

What evidence is usually required and how funds are released

Lenders want to see that soft costs are necessary and proportionate to the project. They typically request scopes of work, supplier quotations or contracts, and a project plan showing timelines and payment stages. For fit-outs, they may ask for drawings, CAD layouts, M&E specifications, and landlord approvals if relevant.

Stage payments are common for multi-phase projects. Funds may be paid directly to suppliers upon receipt of an invoice, signed-off milestone, or completion certificate. Some lenders hold a retention until practical completion to protect you and ensure quality delivery.

If the facility includes both hard and soft costs, the lender may require a breakdown by category. Clear categorisation helps determine what can be financed under each product type and reduces delays at drawdown.

Typical documents lenders may ask for

Project brief, programme, and Gantt chart or milestone schedule.
Professional proposals and fee letters for design and PM.
Supplier quotes with itemised soft and hard costs.
Contracts, T&Cs, and evidence of insurance and compliance.
Landlord consent, building control approvals, or listed building permissions where applicable.
Company financials, bank statements, and management accounts.

How drawdowns often work

Deposit funding for long-lead items once documentation is approved.
Staged drawdowns linked to agreed milestones or site inspections.
Direct-to-supplier payments to reduce your administrative burden.
Retention release on practical completion or snagging resolution.

What’s commonly included vs. excluded (by scenario)

In practice, eligibility is case-by-case, but trends are clear across sectors. The more integral a soft cost is to achieving a functional, compliant outcome, the more likely it can be included within the facility. Below are indicative scenarios to help you benchmark expectations.

Hospitality and retail fit-outs often achieve comprehensive coverage, including design, PM, and installation, as these are central to the venue’s operation and compliance. Manufacturing and engineering projects typically include installation, commissioning, cabling, and control systems, with design and PM covered where they directly relate to making plant operational.

Office refurbishments frequently include architectural design, space planning, PM, partitions, flooring, data cabling, lighting, and furniture installation. Healthcare and clinics may additionally include compliance documentation, specialist design, decontamination equipment installation, and HTM/HBN-linked cost items.

Commonly included

Design fees tied to deliverables (layouts, plans, compliance drawings).
Project management aligned to milestones and handover.
Installation, commissioning, and training required for go-live.
Delivery, logistics, waste removal, and site preparation.
Building control costs, signage, alarms, CCTV, access control.
IT and AV installation, cabling, and network infrastructure.

Commonly excluded or restricted

Pure consultancy not linked to project deliverables or outcomes.
Internal labour and overheads unless clearly scoped and evidenced.
Contingency allowances without itemised justification.
Land or property purchase, major structural works, or extensions (these require property finance, which we do not support).
VAT where the facility or lender policy excludes VAT financing; some lenders can include VAT, others cannot.

Percentage caps and workarounds

Where soft costs under asset finance are capped, lenders may allow up to a defined percentage of the overall funded amount. If caps prevent full coverage, a complementary unsecured loan can cover the remainder. Alternatively, providers may restructure contracts so more costs qualify as installation or commissioning when genuinely justified.

Timing and supplier accreditation

Lenders prefer to see reputable, creditworthy suppliers with clear insurance and compliance credentials. Starting work before finance is approved can limit options, especially for retrospective funding. Engage early and provide clean, consistent documentation to improve outcomes and timelines.

How Best Business Loans helps you proceed

Our AI-powered platform matches your project with lenders and brokers that understand soft-cost funding in your sector. We make introductions to providers who can consider design, project management, and installation costs alongside equipment and fit-out items. You stay in control, comparing options without approaching multiple firms manually.

It’s free to submit an enquiry. You can request a Quick Quote, an Eligibility Check, or a Decision in Principle to understand what’s feasible before you commit. We’ll ask a few straightforward questions to assess whether your soft costs are likely to be included and which route suits your timeline.

We don’t promise the cheapest rate, and we’re not a lender. Our role is to connect established UK businesses with relevant, active providers who can genuinely help. You decide what’s best for your goals and cash flow.

What to prepare for a faster response

Project summary and timeline, including completion target.
Itemised quotes showing design, PM, installation, and materials.
Supplier details, contracts, and payment schedules.
Latest financials and bank statements to evidence affordability.

Simple next steps

Complete your Quick Quote form with a brief outline of soft and hard costs.
Our system matches you with relevant providers for your project type.
Discuss staged payments, soft-cost limits, and drawdown mechanics with the provider.
Review offers, compare terms, and choose the route that fits your plan.

Key takeaways

Design, project management, and installation costs can often be included, particularly under fit-out and equipment-led facilities.
Evidence and structure matter: itemise costs, align to milestones, and show why each soft cost is essential.
If caps apply, a blended solution can cover remaining soft costs.
Early engagement and clear documentation typically speed up approvals and drawdowns.
Submit a Quick Quote to explore providers who actively support soft-cost funding.

FAQs

Can 100% of soft costs be funded?

Sometimes yes under fit-out finance, but not always. Asset finance may cap soft costs, while unsecured loans can cover more of the remainder. A provider will confirm caps after reviewing your scope and quotes.

Will the lender pay my designer or contractor directly?

Many do, particularly on staged drawdowns to match milestones. Direct-to-supplier payments help manage risk and cash flow across multiple trades.

Can I include software configuration and user training?

If they are essential to the equipment or system going live, many lenders will consider them. Pure training not linked to installation may be harder to fund under asset finance but may be possible with an unsecured facility.

What if I already paid a deposit?

Some lenders can refinance deposits or earlier invoices if the project is still in progress, but policies vary. Disclose any upfront payments early so providers can advise on options.

How fast can this be arranged?

Simple cases can move in days once documents are complete, while complex, multi-supplier fit-outs may take longer. Early sharing of quotes, schedules, and approvals accelerates the process.

Important information and fairness notice: Best Business Loans operates as an independent introducer, not a lender. We do not provide financial advice. Funding availability, rates, and terms are set by third-party providers and depend on your circumstances. All information on this page is intended to be clear, fair and not misleading, and should be used to support, not replace, discussions with regulated providers. If you proceed, your agreement will be with the chosen lender or broker, who will outline all costs and obligations before you commit.

Last updated: October 2025