Can I use finance for refurbishment or fit-out projects?
Short answer
Yes — UK businesses can commonly use a range of finance products to fund refurbishment or fit-out projects, from small shop refits to large commercial refurbishments. The right solution depends on project size, timescale, your sector and whether you can offer security or prefer unsecured options.
What counts as a refurbishment or fit-out?
A refurbishment or fit-out covers internal works to a commercial property, such as shop displays, office reconfigurations, restaurant kitchens, retail shelving, and tenant improvements. It also includes mechanical, electrical and plumbing upgrades, décor, joinery and fixed fixtures needed to operate the business. Projects range from cosmetic refreshes to structural alterations and can be staged or one-off investments.
Fit-outs are often classified as “tenant” or “landlord” works depending on the lease, while refurbishments may include landlord-led common-area upgrades. Lenders and brokers will expect a clear scope of works and cost estimates so they can match the appropriate finance. Providing plans, contractor quotes and a project timeline improves your eligibility and speeds decisions.
Types of finance suitable for fit-outs and refurbishments
Several mainstream finance options are used to support refurbishment and fit-out projects. Common choices include business loans (term loans), asset finance, hire purchase agreements, commercial lease or finance leases for fitted equipment, and specialist fit-out loans. Invoice finance and overdrafts sometimes bridge cashflow during phases where you wait for revenue to return.
Asset finance or hire purchase are useful when a large component of the fit-out is equipment or machinery, because the asset itself can act as security. For broader works, unsecured or secured term loans offer fixed repayment profiles that suit predictable budgets. Where VAT or tax cashflow is an issue you might consider VAT bridging loans or staged drawdowns tied to project milestones.
If your project is part of a wider business strategy — for example improving energy efficiency — sustainability or green loans may be appropriate and can attract preferential terms. For larger investments, brokers and commercial finance specialists can package funding with staged releases aligned to the works.
For an overview of commercial non-property options that can fit refurbishment needs see our commercial finance guidance here: commercial finance.
How lenders assess refurbishment / fit-out finance applications
Lenders look at several core elements: the business’s trading history, current and projected cashflow, the purpose and cost breakdown of the works, and any security offered. Established SMEs with 2+ years’ trading and consistent accounts typically access better terms than very new businesses. Lenders may also review lease terms to confirm permission for alterations.
Detailed supporting documents speed approvals. Typical requirements include contractor quotes, project schedule, recent management accounts, bank statements, tax returns, and the business plan showing how the refurbishment supports income growth. For fit-outs where equipment is financed, equipment specifications and supplier invoices are often requested.
Different lenders have varying appetites: some specialise in unsecured small-to-medium refurbishments, while others prefer secured or asset-backed deals. Credit score, director guarantees and existing lending profile also influence rates and loan-to-cost ratios. A broker or introducer can help identify lenders most likely to accept your specific project and business profile.
Choosing the right product and preparing your application
Follow a simple decision framework: define the project scope, obtain multiple contractor quotes, quantify VAT and contingency, then pick finance that matches the cashflow profile. Short-term bridging suits quick fixes, term loans suit predictable repayment plans, and asset finance suits equipment-centric upgrades. If you expect rent increases or business growth, factor repayment capacity into forecasts.
Tax and VAT considerations
VAT treatment depends on whether works are standard-rated or qualify for reduced or zero rates; you should check with your accountant. Capital allowances may be available for certain plant and machinery within the fit-out, which can improve the after‑tax cost of borrowing. Always discuss tax treatment with a qualified adviser before finalising finance.
It’s sensible to build a contingency of typically 10–20% into your funding need to cover unforeseen issues. Lenders often prefer staged drawdowns tied to practical completion milestones; this reduces wasted interest and aligns funding with expenditure. Get written confirmation from contractors about payment schedules and snagging policies to include with your application.
How Best Business Loans helps and next steps
Best Business Loans does not provide loans directly; we help UK businesses find suitable lenders and brokers for refurbishment and fit-out finance. Our AI-driven matching connects you to providers who actively lend to businesses in your sector and for your project type. Submitting a Quick Quote takes a few minutes and can produce an eligibility check or decision in principle from relevant providers.
When you use our service, we ask about your business, the project value and timescale, and supporting details such as trading history and preferred security. We then analyse this against our lender network and introduce you to matched providers. You remain in control of offers and negotiations; there is no obligation and no fee to submit a Quick Quote.
For compliance and transparency: we are an independent introducer and do not offer regulated financial advice. Any finance offer will be issued by an authorised lender or broker who will provide full terms and required disclosures. You should consider seeking independent financial or tax advice before accepting any funding.
Key takeaways
- Yes — a wide range of finance options exist for fit-out and refurbishment projects, from asset finance to term loans.
- Prepare accurate quotes, timelines and financials to improve approval chances and secure better terms.
- Match the product to the cost profile: short-term bridging, staged drawdowns or asset-backed finance each suit different needs.
- Best Business Loans can quickly introduce you to suitable lenders or brokers via a free Quick Quote.
Ready to explore finance for your project?
If you’re planning a refurbishment or fit-out and want a fast eligibility check, complete our Quick Quote form. It only takes a few minutes and helps us match you to lenders or brokers who specialise in your sector. Our service is free and designed to point you toward the most relevant funding options for your needs.
Need help before you apply? Email our UK support team at hello@bestbusinessloans.ai for guidance on what documents lenders typically request. We aim to make the process clearer and to save you time when approaching the market for finance.