I need to…

I need to renovate or fit out premises

You

We've signed a lease on a bigger space in town. It's a bare shell, and the fit-out quotes are more than I expected.

LendFriend

Fit-outs are usually funded with a property-secured loan (if you or a supporting party own property) or an unsecured business loan based on turnover. Budget a contingency, check the lease and consent requirements first, and keep enough cash to trade through the move.

An interior under renovation with ladders, tools and exposed framing
Renovate or fit out premises

What does a fit-out usually include?

A “fit-out” covers everything that turns a space into your business: partitions, flooring, lighting, plumbing, kitchens, counters, shelving, signage, IT cabling and furniture. A shell (bare) tenancy needs the lot; a second-generation space — say, a former cafe becoming your cafe — may only need a refresh.

Knowing which one you’re dealing with is step one, because the difference in cost can be enormous.

How do I budget a fit-out properly?

A friend who’s been through a few of these would tell you:

  1. Get at least two detailed quotes that list exactly what’s included and excluded.
  2. Add the hidden costs: design fees, consents, engineer reports, fire compliance, signage approvals, removal of the old fit-out, and moving costs.
  3. Add a contingency — commonly 10–20% on renovation work, more for older buildings.
  4. Budget for the disruption: lost trade while you’re closed, or overlapping rent on two sites.
  5. Keep working capital aside so you can trade confidently after opening.

Opening day is when you start earning back the fit-out. Make sure you’ve still got money for stock, wages and marketing that week.

What should I check in the lease first?

  • Term and renewal rights. A big fit-out on a short lease means paying it off over the time you get to use it.
  • Landlord contribution. Some landlords contribute to fit-out costs or offer rent-free months on longer leases.
  • Make-good clauses. What must be removed or restored when you leave?
  • Personal guarantee. Many commercial leases ask directors to guarantee the rent. Read our personal guarantees guide before signing.

Commercial leases in New Zealand are often based on the ADLS standard form, but every lease is negotiated. A property lawyer is worth their fee here.

Do I need consents?

Some fit-out work needs a building consent from your local council, and food businesses may need their premises checked against food safety requirements. Change-of-use situations can trigger extra requirements too. Your designer or builder should tell you early — and the consent timeline belongs in your plan.

How can I fund the fit-out?

OptionWorks well for
Property-secured business loanLarger fit-outs, or bundling fit-out with equipment and stock. $20,000 up to $1m secured on NZ property, as a first or second mortgage
Unsecured business loanEstablished businesses (usually trading 6+ months) with steady turnover
Landlord contribution plus a smaller loanLonger leases where the landlord wants a quality tenant

If you’re renovating premises you own, improvements to commercial or industrial buildings may qualify for the Investment Boost deduction. Your accountant can confirm.

What do lenders want to see for a fit-out?

The quotes, the lease (or title, if you own it), a sense of how the new space will lift revenue, and your trading history or property details. Photos of the space and a simple timeline help the conversation along.

How LendFriend helps

Tell us about the space, the quotes and your timing. We’ll look at your situation and match you with a lender from our panel that suits a fit-out of your size — and we’ll make sure funding lines up with your builder’s payment schedule. You decide.

Start your enquiry — it takes about 60 seconds.

The honest bit

Fit-outs run over — budgets, timelines, or both. If the project only works when nothing goes wrong, trim the plan until it works with a 15% cushion. Customers remember great service long after they've forgotten the light fittings.

Questions people ask about renovate or fit out premises

Can I borrow for a fit-out in premises I lease?

Yes. The loan is for your business, not secured on the landlord's building. It's typically based on your turnover, or on property you or a supporting party own.

Will my landlord contribute to the fit-out?

Sometimes. Landlords may offer a fit-out contribution or rent-free period, especially on longer leases. Ask before you sign, and check what you must remove or restore at the end of the lease.

Do I need building consent for a fit-out?

It depends on the work. Many internal changes don't, but structural, plumbing, fire safety and some electrical work can. Check with your council or designer early, because consents affect timelines.

Can fit-out costs qualify for Investment Boost?

Some improvements to commercial buildings can qualify for Investment Boost, but residential improvements can't. Ask your accountant how it applies to your specific work.