Fitout Finance

If you’re starting a business it pays to ensure all your required finance approvals are in place before you start. It’s often easier to fund a higher amount for a combination of tangible assets along with a fitout.

A landlord contribution can be comming, particularly in higher value leases. This is where a landlord may reimburse part of the cost of a fitout. Reimbursement usually happens after a fitout is complete. If you need funds to pay suppliers prior to receiving a contribution payment from a landlord CFI can assist with short term finance.

Oftne fitout finance can be a combination of short and long term finance to allow you to reduce debt once landlord contributions are received. 

Progress Payments are common for fitout works. Often a shopfitter will require a deposit and at least one payment as works progress, before a final payment on completion.

CFI can accomodate these staged payments as part of your agreement, and allow your loan to be drawn down in stages, reducing your interest expenses and cash outflow in those critical early days.

When planning any building works you’ll need to have a contingency for unexepcted expenses or blowouts in labour costs or materials. Even if you’re working on a fixed price contract it pays to keep 10-15% of the total budget in reserve to handle any unforeseen works.

Make sure you have any approvals you require in place before you start. Delays in approvals can mean you’re delayed opening but some of your expenses may have already started! Watch out for things like council approvals, shopping centre requirements, and heritage issues.

Make sure you have a plan for the end of your lease, and get it clear in writing what will happen to your fitout when the lease ends.

You may also need to consider what happens if you terminate your lease early, particularly if there’s a landlord contribution, some of which may need to be paid back.