Commercial Fit Out Finance

Key highlights

• Fund office, retail, industrial or clinical fit-outs over a term
• Cover joinery, partitioning, services, equipment and trade labour
• Preserve working capital for operations during the project
• Unsecured, secured or flexible facilities depending on scale
• Comparing 80+ lenders matches funding to your project and profile

What a commercial fit-out involves

A commercial fit-out transforms a base building space into functional premises for your business, and the scope can be considerable. Depending on the sector, it may include partitioning and offices, reception and joinery, flooring and ceilings, electrical and data cabling, lighting, climate control, plumbing, compliant services, signage, and the fit-out trades who bring it together. Larger projects can also involve specialised equipment and technology. Commercial fit out finance funds this work over a manageable term rather than in one lump sum, so the outlay does not consume the cash your business needs to keep operating. Funding across Overdrive's panel runs from around $5,000 up to $5 million, indicative and subject to lender assessment.

Why finance a commercial fit-out

A quality fit-out supports productivity, brand and customer experience for years, so funding it over time rather than upfront often makes commercial sense. Paying the full cost in cash can leave a business exposed during the transition, precisely when working capital is stretched by moving, downtime and marketing the new space. Spreading the cost through finance keeps funds available for wages, stock and operations while the works proceed, and lets you align repayments with the returns the improved premises generate. For growing businesses, this frees capital to invest elsewhere at the same time. The objective is a fit-out that lifts the business without creating a cash-flow squeeze during or after the project.

Products that suit commercial fit-outs

The right facility depends on the scale and structure of your project. An unsecured business loan delivers a lump sum without property security, typically up to around $500,000, and suits many commercial fit-outs. A secured loan can fund larger works where property or assets are available as security. A line of credit or overdraft provides flexible access to funds as progress claims fall due, which fits staged commercial projects well. Larger fit-outs sometimes combine a term loan for the main works with a flexible facility for variations and contingencies. Comparing these options against your budget, timeline and the way your fit-out is invoiced helps you fund the project efficiently rather than awkwardly.

Matching finance to progress payments

Commercial fit-outs are usually invoiced in stages: a deposit, progress claims as milestones are reached, and a final payment on completion. This staged billing can suit a line of credit, where you draw to meet each claim and pay interest generally only on the drawn amount. Alternatively, a term loan covering the full budget gives certainty that funds are in place for the entire project from the outset. Which approach fits depends on how predictable your costs are and how your builder structures payments. A broker familiar with both commercial finance products and typical fit-out billing can help you align the funding with the payment schedule so cash is available exactly when contractors expect it.

Eligibility and speed for eligible applicants

Lenders generally look for an active Australian ABN, a minimum trading history often around six to twelve months, and a minimum monthly turnover. Low-doc options may assess you on bank statements or BAS rather than full financials, which helps newer businesses or those with incomplete returns. Newer businesses may still qualify subject to criteria. For eligible applicants, same-day pre-approval and funding within 24 to 48 hours may be available, which is valuable when a project timeline is fixed and trades are booked. All figures and timeframes are indicative and subject to lender assessment, so the real outcome depends on your profile and how complete and well-presented your application is.

Costs and tax considerations

Pricing on commercial fit out finance is product- and profile-dependent; stronger secured facilities can start from around 7.49% p.a., with unsecured and short-term products priced higher depending on turnover, term, security and credit profile. Rates are indicative and subject to assessment, never guaranteed. On tax, commercial fit-outs can raise questions around depreciation, capital works deductions, and the treatment of different components of the work, all of which depend on your circumstances. These are matters for your accountant rather than your broker. Check with your accountant before committing so the fit-out is structured and claimed correctly, and treat any general information here as background rather than specific tax advice for your situation.

The value of comparing 80+ lenders

Appetite for funding commercial fit-outs varies between lenders, especially where the spend is largely on works rather than resaleable equipment, and pricing, terms and flexibility differ considerably. Applying to a single institution means accepting its view without seeing options that might suit your project better. Overdrive's Simon Kendrick compares a panel of 80+ banks and non-bank lenders on one application, matching your project scale and profile to lenders likely to fund it well. For eligible applicants, this can surface a more suitable structure and price than the first bank approached, and it avoids lodging several separate applications that each mark your credit file and can affect future borrowing capacity.

If a commercial fit-out is coming up, financing it thoughtfully keeps your working capital intact for everything else the project demands. Simon Kendrick at Overdrive Business Loans can review your budget and turnover, run a soft credit check that leaves no mark, and compare commercial fit out finance across 80+ lenders to find a fitting structure. For eligible applicants, pre-approval can be quick and funding may be available within 24 to 48 hours once agreed. Get in touch for an obligation-free quote, and confirm the tax treatment of your fit-out with your accountant so the project starts on solid footing.