Office fit-out – The funding conundrum

OK, for many small businesses, fitting out an office involves little more than a lick of paint, some desks and filing cabinets and perhaps partitions or dividing walls – hardly the sort of stuff to break the bank.

However for larger businesses, or those who have very specific requirements (showrooms, restaurants, customer environments to name a few) this is big and often costly business investment, frequently heading well into 6 figures and beyond.

The financial impact is compounded by the fact that fitting out new premises often links to a cash-hungry phase of business, whether that involves starting up, relocating or planned expansion. You might have the cash reserves, but do your really want to spend it all on long-term assets?

The funding conundrum comes in the nature of fit out – part labour, part fixtures and part removableĀ assets.

Traditional finance companies will be interested in funding the identifiable assets – furniture, demountable partitioning, air conditioning, but won’tĀ touch fixtures or labour.

Unsecured lenders won’t be concerned about the asset as such, but will focus mostly on historic financials, which by definition won’t reflect the potential of the new environment.

Having done their own bit, the lenders will leave you to sort the rest yourself.

The natural solution is to use a blend of facilities to fund as much of the project as necessary, leaving your working capital free to work. Which is why we work with a range of different types of funder to create a solution rather than just a restrictive product.

Funding Portal works with both suppliers and customers to provide end-to-end funding for business fit-out projects.