Financing a Fit Out – The Importance of Leasing for Office Fit Outs

Aug 3, 2023

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:

  • Use available cash to do what they can, compromising on the fit out!

  • Finance their fit out, immediately access the cash they need and create the perfect environment for their people while still preserving their working capital!

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. 

Why choose finance? An interview with a Rhino client

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:

Why did you choose to finance your fit-out project?

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. 

Why did you choose to finance it through Rhino specifically?

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!

What was the process like with Rhino?

It was very simple. The finance company were really on the ball and made the exercise nice and easy. 

What was the outcome? 

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!

The benefits of funding your fit out

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:

  • Retain valuable cash – As our client mentioned earlier, they had money in the bank, but wanted to keep it available for other investments, or any unexpected expenditure. Leasing allowed them to do exactly that. 

  • Maximise your cash flow – There’s no large deposit payments, and your funding can be a 100% loan, meaning you’ll know exactly what you need to pay every month – nice and simple. 

  • Receive 100% tax relief on the whole project – Finance for a fit out is 100% tax deductible, which means that it often turns out cheaper than using cash. 

  • Get your project moving quicker – Pulling cash together can take time, leasing provides you with immediate access to the required funds, meaning your fit out will be completed sooner, and your people will be in their more productive workplace much, much faster. 

  • Pay as you use your new facility – With leasing, you’ll be able to pay over time as you use your new space.

  • Rapid decisions – Securing a lease facility is far quicker than obtaining a bank loan or overdraft extension. For straight-forward proposals it can even be done in a matter of hours!

  • Relaxes your budget – When paying with cash, you’re far more likely to cut corners or settle for designs you’re not 100% happy with. Leasing allows you to invest properly, meaning you get the right look and feel without worrying about cost. 

  • Preserve bank credit lines – Leasing leaves your bank credit lines intact and free for other business development or investment purposes.

How to find finance for your fit out

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:

  • Keep trying lenders until you find one who claims to be experienced in fit out leasing. 

  • Talk to the specialists at Rhino, who have worked with proven lenders and know how to get the best leasing deals available. 

Don’t let money be the barrier to getting the workplace upgrade you desperately need. A high-quality workplace:

  • Helps boost employee wellbeing.

  • Reduces absenteeism.

  • Makes it a hard choice deciding whether to work from home or head into the office.

  • Dramatically improves recruitment.

  • Helps you to retain the employees.

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.

Finance your fit out

Be like our entrepreneur – finance your fit out and watch your business thrive.

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