Shop fit-out finance

A fit-out is where a business stops being an idea and becomes a place. It’s the counter, the lighting, the kitchen, the treatment rooms, the shelving, the sign over the door. It’s also, for most main-street owners, the single biggest cheque they’ll write — and one that’s spent on someone else’s building.

That’s what makes fit-out funding a bit different from other business borrowing.

What does a fit-out actually include?

Owners often price the obvious items and forget the rest. A realistic fit-out budget covers:

Stage	Typical lines
Before work	Design, drawings, consent and council fees, lawyer’s lease review, building reports
The build	Strip-out, walls and ceilings, electrical and data, plumbing and drainage, ventilation and extraction, flooring, accessible facilities, paint
Making it yours	Joinery, equipment, furniture, signage, POS and security
Opening	Bond, opening stock, wages for training, launch marketing, insurance

Our free fit-out budget checklist walks through every line, adds a contingency and shows your funding gap. For a full planning walk-through, read our fit-out budget guide.

What should I sort before I borrow?

The lease. A lender funding a fit-out wants enough lease term to justify it, including any rights of renewal. Business.govt.nz suggests clarifying who pays for renovations and repairs, asking about landlord incentives (often available on longer leases), and understanding the make-good provisions — what you must put back when you leave. Our commercial lease checklist covers this in detail.

Consents and change of use. If you’re changing what a space is used for — a former shop becoming a café, a clinic or a gym — talk to the council early. Auckland Council, for example, says you must notify it in writing of a change of use, and if building work is needed to meet the Building Code, you’ll need a building consent before you start.

Building safety. Business.govt.nz recommends asking for structural assessments and asbestos reports, and checking how the lease handles earthquake or fire damage. Older main-street buildings in particular can surprise you.

How do fit-outs get funded?

The guiding rule is to match the funding to how long the fit-out earns. A café fit-out might serve a business for many years, so draining one season’s working capital to pay for it rarely makes sense.

Unsecured term funding — typically $5,000 to $500,000 for trading businesses — suits smaller fit-outs and refreshes for businesses with steady takings. It doesn’t need a valuation, but terms are shorter.

Property-secured business loans — $20,000 to $5,000,000 — suit bigger fit-outs, new businesses with little trading history, or owners who want a longer term and lower repayments. Security can be a home or commercial property through a first or second mortgage or caveat-style security.

Equipment finance often suits big items like ovens, refrigeration or clinical equipment, alongside a facility for the building work.

Landlord contributions and your own cash reduce how much you need to borrow. Keep some cash back for the first quiet months after opening.

Have quotes in hand? Start an enquiry and a person will talk through the options. There’s no credit check to ask.

What about tax?

Two tax points can change the real cost of a fit-out:

• Depreciation. Inland Revenue says commercial fit-outs — such as non-structural interior walls, electrical cabling and fire protection equipment — can be depreciated separately from the building. Structural elements and waterproofing can’t.
• Investment Boost. Inland Revenue lists improvements to depreciable property (but not residential buildings) among the things that can qualify for Investment Boost, which lets businesses claim 20% of the cost of new assets acquired from 22 May 2025 as an upfront deduction.

And don’t forget GST: if you’re registered you’ll usually claim it back, but you pay it first. Talk to your accountant before you commit.

An illustrative example

Illustrative only. An owner signs a six-year lease with a right of renewal on a former clothing store and plans to open a café. The fit-out needs a change of use, a grease trap, extraction, a new accessible toilet, counter joinery and equipment.

The landlord agrees to a rent-free period during the build. The owner uses equipment finance for the coffee machine and kitchen gear, a property-secured loan for the building work, and keeps enough cash to carry wages through the first two months of trading. Every line is priced in the fit-out checklist, with a contingency on the plumbing and extraction.

What should I have ready?

• The signed lease or agreed heads of terms, including renewal rights
• Itemised quotes from your builder and key trades
• Any council correspondence about consents or change of use
• Twelve months of business bank statements, if you’re already trading
• Details of any landlord contribution or rent-free period
• Property details if you’d like to use property as security

How long does it take to fund a fit-out?

It depends on the route. Unsecured term funding doesn’t need a valuation, so it’s usually quicker to arrange. Property-secured loans need a valuation and legal work, so allow more time. Either way, start the funding conversation while you’re still negotiating the lease and getting quotes — not when the builder is waiting for a deposit.

Ready to fund your fit-out?

If you’ve got a space and a plan, start your 60-second enquiry. There’s no credit check to ask, your details stay with one team instead of being passed around, and a person who understands main-street fit-outs will ring you. Please include an accurate total and what’s already covered — quotes, landlord contribution and your own cash — so we can match you properly first time.