Fitout loans, also known as renovation loans or refurbishment loans, are financing options specifically designed to cover the costs of improving or renovating a property. Typically, these loans are sought by business owners who want to upgrade or make an alternative to their commercial premises.
Fitout loans can be used for various purposes, such as renovating a retail store, remodelling an office space, or refurbishing a restaurant. The loan can cover expenses such as construction, interior design, fixtures, fittings & equipment. In the past, obtaining funding for fit-out loans was tricky and demanding, especially if the applicant does not own the physical premises where they operate. I.e., they are paying rent to the owner for the premises. Banks normally impose a few arduous conditions such as mortgage to the lease, consent from the landlord for the finance of the fit-out, and right of entry, just to name a few.
However, in recent times, with the emergence of many cash flow lenders, obtaining a revolving facility for fitout purchases is not as difficult as it used to be. For a customer that matches, below criteria’s.
Credit: Clean Credit History, with unblemished repayment history
Annual Turnover: $ 250K
Minimum Equifax Score: 550
Time in Business: Over 2 years
Maximum Limit (if applicant owns a property): $ 500K
Maximum Limit (If non-asset backed): $ 100K with No Age Limit
