Can I use finance for a fit-out, refurbishment or equipment purchase?
Short answer
Yes — many UK businesses can use finance to pay for fit-outs, refurbishments and equipment purchases.
Suitable finance options include asset finance, hire purchase, equipment leasing, business loans and commercial refurbishment funding.
Why finance is commonly used for premises and equipment
Fit-outs and refurbishments are capital-intensive and can strain cash flow if paid from working capital.
Financing spreads the cost, preserves cash for day-to-day operations, and can accelerate projects that increase revenue or efficiency.
Who this guide is for
This page is for UK limited companies and established SMEs exploring funding for premises works or buying business equipment.
We explain product choices, eligibility, costs, tax considerations and how to get matched with lenders or brokers.
Important compliance note
Best Business Loans does not provide loans or regulated advice and operates as an independent introducer.
We help you find and compare providers, but you must confirm terms and eligibility with the lender or broker you select.
What types of finance work best?
Asset finance (equipment finance)
Asset finance covers finance specifically for equipment — for example machinery, kitchen equipment, IT, workshops and vehicles.
Products include hire purchase, finance leases and asset refinancing, typically secured against the asset itself.
Hire purchase and conditional sale
Hire purchase lets you pay in instalments and usually takes ownership when the final payment is made.
It suits businesses that want ownership over time and predictable monthly costs.
Operating leases and equipment leasing
Operating leases are like renting equipment for a set term without ownership at the end.
They can help keep balance sheets lighter and are useful for fast-depreciating or easily upgradeable assets.
Commercial loans and business term loans
Unsecured or secured term loans can fund broader projects such as full shop fit-outs or multi-site refurbishments.
These are flexible but may require stronger credit profiles or security such as property or a director guarantee.
Refurbishment-specific facilities
Some lenders offer commercial refurbishment loans or specialist fit-out finance with staged drawdowns tied to project milestones.
These are commonly used for larger projects where funds are released as work completes.
Eligibility and what lenders will check
Business age and trading history
Most mainstream lenders prefer established businesses with at least 12–24 months trading history.
Newer companies may be considered by specialist brokers or alternative lenders but usually at higher cost.
Sector and use of funds
Lenders assess the sector because risk varies — hospitality, retail and construction may be treated differently to professional services.
Be clear about whether funds are for fit-out, refurbishment, energy upgrades or equipment, as this affects product choice.
Credit history and financials
Providers review company accounts, bank statements and director credit profiles to assess affordability and risk.
Strong cash flow and a clear repayment plan improve chances of favourable terms.
Security and deposit requirements
Some facilities are asset-backed, while others require additional security like property charges or personal guarantees.
Equipment finance often needs little or no extra security beyond the asset itself.
Value of assets and loan-to-value
Equipment finance terms depend on the asset’s value, life expectancy and market demand.
Lenders typically offer higher funding percentages for readily resellable assets.
Cost, terms and practical considerations
Interest rates and fees
Rates vary widely by product and lender; asset finance can be cheaper if the asset is low risk.
Always check arrangement fees, early repayment charges and maintenance obligations in lease contracts.
Repayment terms and cashflow planning
Match the repayment term to the asset’s useful life and your expected cash flow improvements.
Shorter terms reduce total interest but increase monthly payments, which can impact liquidity.
Maintenance, residual values and end-of-term options
Leases may include maintenance or offer purchase options at the end of the term; understand residual values and penalties.
For hire purchase, confirm how warranty, insurance and maintenance responsibilities are handled.
VAT treatment and reclaiming VAT
VAT is treated differently depending on the contract; businesses registered for VAT may be able to reclaim VAT on equipment purchases.
For leased assets, VAT is often payable on each instalment or at the start depending on the product.
Tax and capital allowances
Many business assets qualify for capital allowances that reduce taxable profits, including certain energy-efficient equipment.
Speak to an accountant to understand the tax impact of buying versus leasing for your business.
Choosing the right route and practical steps
Step 1 — Define the project and budget
Start with a clear scope: cost estimates, schedule, expected benefits and contingency funds.
That clarity helps lenders assess risk and suggests the most suitable product.
Step 2 — Compare funding products
Use asset finance for equipment, staged refurbishment facilities for build projects, and term loans for broader capital needs.
Compare APR, fees, covenants and end-of-term outcomes for each option.
Step 3 — Get quotes and check lender appetite
Different lenders specialise in particular sectors and asset types, so shop around or use a broker to widen options.
Best Business Loans’ matching service connects you with lenders and brokers who actively fund projects like yours.
Step 4 — Read agreements carefully
Contracts set out ownership, responsibility for maintenance, insurance obligations and end-of-term choices.
If anything is unclear, ask the lender or get independent advice before signing.
Step 5 — Plan go-live and contingency
Ensure drawdown timings align with contractor milestones to avoid delays or payment gaps.
Keep clear records and track project spend to support milestone releases and avoid disputes.
How Best Business Loans helps and next steps
What we do (and what we don’t)
Best Business Loans helps UK businesses find suitable lenders and brokers for fit-outs, refurbishments and equipment finance.
We do not lend money and we do not provide regulated financial advice; you will be introduced to appropriate providers.
How our AI matching speeds the process
Complete a Quick Quote and our AI matches your need with lenders who specialise in your sector and project type.
This saves time and increases the chance of suitable offers without contacting dozens of firms.
What to prepare for a Quick Quote
Have basic company details, turnover, estimated project cost and the asset or project description ready.
Supporting documents such as recent bank statements and management accounts speed assessment.
Compliance, transparency and informed decisions
We aim to be clear, fair and not misleading in line with FCA and advertising guidance, so check full terms with any provider.
Providers may require additional checks, and you should assess affordability, security and tax implications.
Ready to check your eligibility?
If you’d like a Quick Quote or a free Decision in Principle, submit our online enquiry and we’ll match you to relevant providers.
Start the process now to see which lenders or brokers are actively funding fit-outs, refurbishments or equipment purchases for businesses like yours.
For more general options on business funding, see our overview of business finance options on the business finance page.
Explore business finance options
Key takeaways
Finance is commonly used to fund fit-outs, refurbishments and equipment purchases, with several products available to suit different needs.
Asset finance and hire purchase work well for equipment, while staged refurbishment facilities or term loans suit premises projects.
Eligibility depends on trading history, sector, financials and the asset type; always review costs, tax and contract terms before proceeding.
Best Business Loans can match you to lenders and brokers for a free Quick Quote, helping you identify suitable funding without wasting time.
Updated: 29 October 2025. If you need help preparing your Quick Quote, contact hello@bestbusinessloans.ai for guidance before submitting.