Can I finance a studio refit or fit-out, including electrical and building works?
Short answer: yes — many UK lenders can fund studio fit-outs, from building works and electrical (M&E) to fixtures, AV, acoustics and equipment.
Most established UK businesses can finance a studio refurbishment or new fit-out, including core building works, electrical upgrades, lighting, HVAC, acoustic treatment, data cabling, and specialist equipment. Funding is typically structured through fit-out finance, asset finance (hire purchase or leasing), unsecured business loans, or a mix of these. Terms can range from 12 to 84 months, with staged payments to multiple suppliers where required.
Best Business Loans does not lend directly; we help you find suitable lenders or brokers who regularly fund studio projects. Our AI-driven matching connects you with providers experienced in media, broadcast, photography, podcast, fitness, and creative studio environments. You stay in control — compare options and choose what suits your project scope and cash flow.
Typical studio fit-out costs that can be included:
- Electrical and mechanical systems (power upgrades, lighting, HVAC, air handling).
- Building works (partitions, floors, doors, structural works subject to consent).
- Acoustics and soundproofing (floating floors, isolation, treatment panels).
- Cabling and IT (data networks, control wiring, trunking, containment).
- Joinery, fixtures and furniture (control desks, benches, storage).
- Specialist AV, cameras, lenses, microphones, audio consoles, displays.
If you’re ready to explore options, you can submit a Quick Quote to be matched with relevant providers in minutes. It’s free to enquire and there’s no obligation to proceed.
Which finance options work best for studio refits?
Fit-out finance for turnkey projects
Fit-out finance packages the whole refurbishment into one facility with staged drawdowns. Lenders can pay approved suppliers directly against invoices and certification, helping you manage multiple trades. This is useful when you need an umbrella solution to cover M&E, building works, fixtures, and soft costs within agreed limits.
Asset finance for equipment and fixtures
Hire purchase and leasing work well for identifiable assets like audio consoles, cameras, lenses, lighting rigs, racks, UPS systems, and certain furniture. You spread the cost while keeping working capital free for installation and building works. At term end you typically own the asset with HP, while a lease can offer flexibility with upgrades.
Unsecured business loans and revolving credit
Unsecured loans can cover elements that are less asset-heavy, like labour, design, and project management, subject to credit assessment. Revolving credit facilities can smooth cash flow between supplier stage payments and grant claims or VAT reclaims. These options often fund faster but at different rate profiles than asset-backed facilities.
Government-backed routes (Growth Guarantee Scheme)
Some lenders participate in the Growth Guarantee Scheme, which can support eligible UK businesses with partially government-backed loans. Availability and terms vary by lender and applicant profile. It can be a useful route where security coverage is limited but trading fundamentals are strong.
Stage payments and multi-supplier funding
Specialist fit-out lenders are comfortable with staged drawdowns and can release funds on evidence of works completed. They may allow multiple supplier invoices, including M&E contractors, acoustic specialists, and AV integrators. Expect milestone sign-offs, proof of delivery, and a sensible retention to ensure snagging is completed.
What can and can’t be financed within a studio fit-out?
Commonly financeable items
- Electrical and building works: distribution boards, containment, sockets, cable trays, partitions, doors, floors.
- Mechanical: HVAC units, ducting, air handling, silencers, ventilation controls.
- Acoustic treatment: isolation booths, floating floors, wall/ceiling treatment, doorsets.
- IT and data: racks, switches, structured cabling, patch panels, KVM, power conditioning.
- Joinery and fixtures: control desks, edit suites, storage, blackout and drapes.
- AV and production: cameras, lenses, mics, monitors, mixers, capture devices, intercoms.
Often financeable (with conditions)
- Professional fees: design, M&E consultancy, acoustic surveys, project management (usually capped as a %).
- Compliance and certification: NICEIC, commissioning, test reports, building regs fees.
- Software and licences: DAWs, editing suites, plug-ins, control apps (more likely under unsecured finance).
Common exclusions or caveats
- Consumables and minor sundries may be excluded or bundled as part of an overall invoice.
- Retrospective financing for works already completed is harder but sometimes possible via refinance.
- Deposits paid before approval may not be covered; always check before paying.
Branding, signage, and print elements can often be included in fit-out budgets if part of a certified project. If you operate a print, signage or fabrication studio, you may also find sector-specific options here: Printing Business Loans – funding options for printing and signage businesses.
VAT can sometimes be funded via a short-term VAT loan or built into the facility depending on the lender. Timing is critical because VAT reclaims affect cash flow, so match the facility term to your reclaim cycle.
Eligibility, documents and how lenders assess studio projects
Typical eligibility signals lenders look for
- UK trading company or LLP with 12+ months’ trading and consistent revenue.
- Healthy bank statements, manageable existing commitments, and no unresolved CCJs.
- A clear project scope, supplier quotes, and evidence of commercial benefit.
Documents you’ll usually need
- Last 3–12 months of business bank statements and recent management accounts.
- Supplier quotes or a detailed bill of quantities for works and equipment.
- Copy of lease and landlord consent if improvements are leasehold.
How affordability is judged
Lenders assess affordability using trading performance, debt service coverage, and your forecast uplift post-refit. They consider the mix of assets and “soft costs” to set the right structure and term. Personal guarantees may be requested for unsecured elements or where security is limited.
Lease terms, consents, and project controls
For leasehold premises, lenders usually want the lease to extend beyond the finance term. Landlord consent and building regulations sign-off help reduce project risk. Drawdowns may align with milestones, with retention until snagging and certificates are complete.
Turnaround times can be quick once documents are ready, often within a few days for asset finance and 1–3 weeks for more complex fit-out facilities. Timescales depend on the number of suppliers, consents, and how detailed your cost plan is. Good preparation speeds up decisions and can improve your terms.
Practical structuring — how to finance a studio fit-out step by step
1) Define the scope and outcomes
List exactly what you’re changing: electrical capacity, acoustics, HVAC, rooms, and equipment. Tie this to operational goals like noise isolation, broadcast quality, or increased billable studio hours. Capture this in a simple brief with a costed breakdown.
2) Gather supplier quotes and programme
Obtain like-for-like quotes and clarify milestones for stage payments. Ensure each quote details deliverables, warranties, and lead times. Check that suppliers can issue invoices aligned to lender requirements.
3) Choose the right funding mix
Use fit-out finance for the building and M&E heavy elements with staged payments. Place identifiable equipment on hire purchase or lease to benefit from clearer asset security and potential capital allowances. Consider an unsecured top-up for design, fees, and contingency.
4) Prepare documents and apply
Submit bank statements, management accounts, project quotes, and lease documents. If you need VAT funding, flag the reclaim timetable early. Ask for direct-to-supplier payments where multiple trades are involved.
5) Complete, draw down, and manage cash flow
Once approved, lenders pay suppliers per milestones, or release funds to you against invoices. Keep a small contingency for variations and unforeseen works. Retentions are common until commissioning and certification are finished.
After completion, diarise review points to ensure the studio delivers the operational and revenue benefits you modelled. Monitoring utilisation helps you refine future finance applications. Well-documented outcomes can improve terms next time you invest.
Costs, tax, risks, FAQs and next steps
Understanding costs and tax treatment
Many studio fit-out items can qualify for capital allowances, but treatment varies, so seek advice from your accountant. Separating equipment (eligible assets) from general building works in your quotes helps accurate claims. Keep certificates and asset registers organised for future audits.
Key risks and how to mitigate them
- Scope creep: lock down design early and include a realistic contingency.
- Lead times: confirm supplier availability and allow float in your programme.
- Cash flow pinches: align finance drawdowns with supplier stage payments and VAT timings.
Example scenario (illustrative)
A post-production studio budgets £185,000: £80,000 M&E and acoustics, £70,000 AV kit, £35,000 furniture, design and fees. They fund £100,000 via fit-out finance with stage payments over 60 months, and £70,000 of equipment on hire purchase over 48 months. A £15,000 unsecured top-up covers fees and contingency, smoothing cash flow without exhausting reserves.
Studio fit-out finance FAQs
Can I finance electrical upgrades and building works? Yes, many lenders fund M&E, partitions, floors, and associated construction within a fit-out facility, often via staged drawdowns and direct supplier payments.
Will lenders pay multiple suppliers? Specialist providers can pay several suppliers against approved invoices, subject to milestone evidence and retention for snagging.
Can VAT be included? Some lenders will fund VAT short-term or include it in the total facility; timings must be aligned to your VAT reclaim to avoid cash flow gaps.
Do I need landlord consent? For leasehold premises, yes — consent is usually required, and lenders may ask for it before drawdown, alongside building regs compliance.
How long can I spread repayments? Typical terms run 12–84 months depending on asset mix, credit profile, and project life; equipment terms often match asset lifespan.
Key takeaways
- You can finance comprehensive studio refits, including electrical, mechanical, acoustic, and building works.
- Fit-out finance plus asset finance for equipment is a common, cost-effective mix.
- Plan for staged payments, landlord consent, and VAT timing to keep cash flow stable.
- Get clear quotes, milestones, and documents ready to speed up underwriting.
- Use our Quick Quote to be matched with UK providers who fund studio projects.
Best Business Loans helps you find suitable finance routes for studio refurbishments across media, broadcast, photography, gaming, podcasting, fitness and creative production. We connect you with lenders or brokers who are actively funding projects in your sector. Submit a Quick Quote to check indicative eligibility with no obligation.
Important information: Best Business Loans (bestbusinessloans.ai) is an independent introducer. We do not provide loans or credit decisions and we are not a lender. Any information on this page is for general guidance only and is not financial, legal, tax or accounting advice. Finance is subject to status, affordability and provider criteria. Terms, rates, and availability can change and may vary by lender. Business use only. Always seek professional advice on tax treatment and regulations before proceeding.