Picture an entrepreneur.
Their business is thriving, sales are up, the team is growing. It’s time to invest in the office and the infrastructure.
That requires a lot of cash, though, “But we don’t want to lock down that much capital,” says the accountant.
There’s an urgent need for a new office fit out, but not the spare capital to create the entrepreneur’s vision. They have two options:
Generally speaking, mature corporations do not usually look for finance (they have the available funds and can afford to invest).
We usually see innovative SMEs in growing sectors who seek funding for their fit-out project.
Funding assets in the office world is something that’s been done for years, but the concept of funding the fixed assets within an office, such as fittings and structural fixings, is a relatively novel approach which you can’t easily find lenders for.
If our entrepreneur goes out on the high street and approaches regular lenders, they’d almost certainly be turned away. Why? As the finance industry is inherently risk averse, and many high-street lenders have never funded a project of this type before, they simply turn it away.
This is why it’s essential to talk to office fit out specialists, someone who has connections to lenders that understand the risks and are willing to fund your fit out project.
In this blog, we will look at a real-life example of a business who chose to finance their fit out, why they did it and what the benefits were to them.
We’ll also look at the wider reasoning as to why you should consider financing your upcoming project, and what steps you’d need to take to do so.
To get a different perspective for this article, we decided to sit down with a Rhino client who opted to finance their recent fit out. Here’s what they had to say:
Our decision to finance our fit out boiled down to cashflow more than anything.
We have money in the bank, but we thought it was a bad idea to use up all our cash reserves in a single large investment.
Instead, we wanted to use that money for other projects, spreading the cost of the fit out over a long period while keeping some money safe in the bank for a rainy day. Having liquid capital is incredibly important in our industry, so financing was the obvious choice for us.
We were already working with Rhino for our fit out. When we mentioned that we were looking to finance the project, they recommended a company to us.
They were very easy to deal with and helpful throughout; we couldn’t have asked for more really!
It was very simple. The finance company were really on the ball and made the exercise nice and easy.
We’ve wanted a fit out for over ten years.
Being able to finance it has enabled us to get it completed while retaining cash in the bank and spreading the cost.
The new workplace has been fantastic for staff morale – worth every penny!
Now that we’ve heard a real-world account of how finance can accelerate a fit-out project, it’s time to dive a little more deeply into the benefits organisations who decide use lease facility enjoy:
As mentioned, finding the right finance option for your fit out can be like looking for a needle in a haystack.
Let’s revisit our entrepreneur. They’ve made the wise decision to seek finance, but now they’re a bit at a loss. They’ve approached their bank, who were a little uncertain as they didn’t understand the risk involved, so they turned them down.
Once again, they have two options:
Don’t let money be the barrier to getting the workplace upgrade you desperately need. A high-quality workplace:
It’s a fantastic investment, and leasing is the best way to achieve the results you need. Want to talk to our finance experts? Click the link below. We’re here to answer any questions you may have.
Be like our entrepreneur – finance your fit out and watch your business thrive.
If you have a question, if you are looking for some bespoke advice, get in touch with our experts today, we’d love to hear about your project.
For a no-obligation chat about your office needs, complete the form below and one of our specialists will be in touch.