Warehouse & Office Fit Out Finance

A commercial fit out transforms a pre-existing space into a propose-ready office, warehouse or other commercial unit. Unlike a full renovation or development project, a fit out is focused solely on designing for a set purpose within an existing building shell.

It’s a broad concept that involves fixtures, fittings, layout and furnishings – so whilst costs may not be the same as a fresh development project, they can still quickly mount up and take your business by surprise. 

To manage the cost of a fit out, your business can turn to financial lenders. Whilst they may not be able to offer asset finance, which relies on tangible assets you can offer as security, many lenders will instead provide a bespoke business loan to help you carry out your fit out. 

Don’t go into your loan application without thinking. Work with our team here at Rangewell and we’ll support you in finding the right loan to suit your needs. Contact us now or keep reading to learn more about financing a fit out. 

Fit out costs continue to rise

Commercial fit out costs are rising rapidly, with a 2021/22 EMEA fit out cost guide reporting that prices are growing 6.6% YoY and that the average cost per square metre across Europe is 1,631 EUR. In the same report, London is singled out as one of the most expensive cities for office fit outs. 

Those costs are averages taken from across Europe. Looking at the UK in particular, costs are highly variable based on your region and requirements. Most providers offer indicative pricing that starts from £80-120 per square metre, though expect these to rise sharply if you’re based in an expensive city like Manchester or London. 

With costs rising every year, businesses that need to conduct a fit out can’t afford to wait. Every year you put it off, the price will increase. Rather than falling behind on your goals, get a finance loan to support your fit out. 

Commercial fit out loan considerations

A fit out project requires a different approach to finance compared to a business aiming to purchase machinery or valuable equipment with a fixed value. The lender can’t use any of the fit out as security, so your loan will be based on the strength of your business plan and application. 

When negotiating a loan, you’ll need to provide a business plan that outlines your operating model and your goals for the future. In it, you should demonstrate the value of the software to your business and how it can help deliver revenue growth over time. This will be part of the lender’s decision-making process, so it’s important to get things right. We’d suggest working closely with your accountant or another business planning professional. 

In most cases, you’ll need to offer security of some kind for a fit out loan, which will either be from your personal assets or against the business. This can be negotiated on a case-by-case basis with lenders and demonstrates how important it is that you speak to a team like ours first. We can work with you to make sure you get the best possible deal. 

Asset finance for IT and AV systems

Most of us assume that a completed fit out will include everything needed for a premises to be ready for your business, including equipment, machinery, computers, etc. 

However, you’ll still need to consider your IT, AV and other electronic equipment separately. In a fit out project, a contractor may have recommendations for you, but you will still ultimately be responsible for purchasing the equipment you use – even if a contractor is installing it after they’ve done the fixtures, fittings and other works. 

The tangible physical value of this type of equipment can work to your advantage, as finance companies can offer you an asset finance agreement. With this type of loan, you’ll be able to get the equipment you need, and the lender will take security over it. 

Learn more about how this type of finance works and apply for it today by visiting our asset finance page.

Get fit out finance with Rangewell

Whatever type of fit out you’re looking to commission, whether it’s a warehouse or an office at any scale, Rangewell can help you find the finance you need to make it work. Talk to our team today to discuss your current situation, goals for the future and lending considerations. We’ll walk you through the lender’s market and identify the right loan to suit your needs.