Funding a cafe shopfit, kitchen refurbishment, retail relocation, dental clinic build, or office move for NZ tenants. The four common structures, indicative weekly costs, decision matrix, and three borrower scenarios.
Last reviewed 5 May 2026
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Weekly
$630/week
Indicative only. Not a quote or offer of credit. Actual rates, fees, and repayments depend on the business profile and the lender's decision.
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5 years at 13.00%. Prospa will ask a few quick questions, then provide a firm quote and funding if eligible.
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Indicative only. Why we say this
Quick answer
What it is
Fit-out and refurbishment finance is borrowing used to fund the construction, fitment, and refresh of business premises. The cost typically blends fixed equipment (commercial cooking, custom joinery, dental chairs, signage, lighting, flooring), trade labour (cabinetry, plumbing, electrical, glazing), and soft costs (architect fees, council consents, project management, makegood reserves, bond top-ups).
NZ tenants commonly use four structures: an unsecured term loan covering soft and labour costs, asset finance for fixed equipment installed inside the fit-out, a line of credit drawn through the project to manage staged contractor invoicing, or a personal-guarantee-supported term loan for the full package. Major-bank lending against the lease itself is rare for SMEs; the lease as security is more commonly seen on listed retailers and mid-market hospitality groups.
The right structure typically depends on the project mix. A new cafe with $90K of commercial kitchen equipment, $60K of joinery and trade labour, and $20K of soft costs commonly settles into a chattel mortgage on the kitchen line and a separate term loan for the rest, with the accountant's confirmation on the GST treatment of each leg. A dental clinic build, by contrast, may have $200K of dental chairs and imaging equipment that asset-finances cleanly, with a smaller residual term loan for joinery, flooring, and consents.
Typical amount
$30K to $500K+
Term
3 to 7 years
Security
Often unsecured or PG
Rate band
9% to 18% indicative
Common scenarios
The seven scenarios below cover the bulk of NZ SME fit-out finance volume. Each scenario maps to one or two structures that fit best.
01
A Wellington cafe operator taking a Cuba Street shell and fitting it out with commercial kitchen, counter, joinery, lighting, and tiling. Total project commonly $120K to $250K. Asset finance on the kitchen line plus a term loan for the rest.
02
An Auckland restaurant replacing a 12-year-old kitchen line: combi oven, deep fryers, char grill, cool room, prep benches. Asset-finance chattel mortgage on the equipment line; term loan for any associated trade work.
03
A Christchurch fashion retailer relocating from a Riccarton shopping centre to a new site. Fitout costs commonly include shop joinery, lighting, fitting rooms, signage, POS, and flooring; total often $60K to $180K.
04
A Hamilton dental clinic adding a third chair plus an OPG imaging unit and digital x-ray. Equipment asset-finances cleanly; building works (compliance plumbing, electrical, lead-shielding, council consents) typically run as a separate term loan.
05
A Tauranga professional-services firm relocating offices and fitting out boardroom, open-plan workstations, breakout area, and AV. Costs typically $40K to $200K; mainly soft and trade-labour, so a term loan or line of credit fits.
06
A Ponsonby hair salon fitting out 6 styling stations, basin units, dispensary, reception, and joinery. Equipment finances under asset finance; signage and joinery typically inside a term loan.
07
A Dunedin retailer refreshing the front of house at lease renewal: paint, lighting, signage, fitting rooms, POS upgrade. A 3 to 5-year term loan or line of credit drawn through the works typically fits the smaller refresh budget.
Structures
Most NZ SME fit-out projects use a blend rather than a single structure. The asset-finance leg sits over the fixed equipment; the term-loan or line-of-credit leg sits over the soft and labour costs.
Chattel mortgage or finance lease over commercial kitchen, dental chairs, salon equipment, or shop joinery that has standalone resale value.
Take-once, repay-across structure. Suits soft costs, trade labour, signage, consents, and makegood reserves where there is no separable asset to secure against.
Pre-approved limit drawn through the project against staged contractor invoicing. Interest only on the drawn balance; cleaner for projects with multiple contractors and uncertain final cost.
Major-bank fit-out loans secured against business assets, lease covenants, or supporting director property. More common in mid-market hospitality groups and listed retailers than SMEs.
Decision matrix
Most NZ fit-out projects blend two or three of the structures below. The matrix is a starting point; the accountant or broker conversation typically refines it.
| Feature | Asset finance | Term loan | Line of credit | Bank fit-out loan |
|---|---|---|---|---|
| New cafe with substantial kitchen line | Best fit (kitchen) | Best fit (rest) | Works | Marginal |
| Restaurant kitchen refurbishment | Best fit | Works | Works | Marginal |
| Retail relocation, joinery-heavy | Best fit (joinery) | Best fit (signage, soft) | Works | Works |
| Dental or medical clinic build | Best fit (chairs, imaging) | Best fit (compliance works) | Works | Works |
| Office relocation, mostly soft cost | Marginal | Best fit | Best fit | Marginal |
| Lease-renewal refresh, smaller budget | Marginal | Best fit | Best fit | No (size) |
| Multi-contractor staged project | Works | Works | Best fit | Works |
| Mid-market multi-site operator | Works | Works | Works | Best fit |
| Sole trader, no property security | Best fit (PG) | Best fit (unsecured) | Works | No (security) |
"Best fit" means the structure is widely chosen for this scenario; "works" means viable but not the optimal pick; "marginal" means usable but better alternatives commonly exist.
Worked scenarios
How the structure choice and indicative cost play out across three different NZ borrower profiles.
Hospitality
A Cuba Street cafe operator taking a 90 sqm shell on a 6-year lease and fitting out front-of-house, kitchen, and counter. Project breakdown: $95K commercial kitchen line ex-GST, $55K joinery and trade labour, $18K signage and lighting, $12K consents and project management. Total $180K ex-GST.
Structure: $95K chattel mortgage at indicative 11% p.a. across 5 years on the kitchen line; $85K unsecured term loan at indicative 14% p.a. across 5 years for the rest. Combined weekly repayment runs around $940. GST on the kitchen line is typically claimable in the next GST return, subject to the accountant's confirmation.
Indicative figures
Dental and medical
A Hamilton East dental practice adding a third surgery chair, upgrading to digital imaging (OPG plus intra-oral), and refurbishing the waiting area. Equipment cost $210K ex-GST; building works (compliance plumbing, electrical, lead-shielding, joinery) $75K ex-GST. Total $285K ex-GST.
Structure: $210K chattel mortgage at indicative 10.5% p.a. across 7 years on dental and imaging equipment; $75K term loan at indicative 13% p.a. across 5 years for compliance works. Combined weekly repayment runs around $1,030. The asset-finance leg attracts the upfront GST claim, subject to the accountant's confirmation.
Indicative figures
Retail
A Riccarton fashion retailer relocating to a new strip-mall site on a 5-year lease. Fitout includes shop joinery, fitting rooms, lighting, signage, POS, and flooring. Total $90K ex-GST, mainly soft and trade-labour cost with limited separable equipment.
Structure: $90,000 unsecured term loan at indicative 14% p.a. across 5 years, supported by personal guarantees from the directors. Weekly repayment runs around $480. The line is structured to amortise before the lease renewal decision.
Indicative figures
Common pitfalls
These pitfalls show up repeatedly across NZ fit-out borrowers. Awareness of them at the project-budgeting stage typically tightens the structure and saves money over the term.
01
Architect fees, council consents, project-management fees, and makegood reserves commonly add 10% to 20% on top of the visible build cost. Many NZ fit-out budgets that look complete at $150K land closer to $180K once soft costs are included; the loan structure is commonly sized against the higher figure rather than the visible figure.
02
A 7-year amortising loan against a 4-year lease leaves the borrower paying off a fit-out after the lease has expired. Many NZ tenants align the loan term to within or just inside the lease term, so the fit-out is amortised before the next lease decision.
03
On a chattel mortgage over commercial kitchen or dental equipment, GST is typically claimable in the next return. On a finance lease, GST is spread across the rentals. Fit-out projects with both legs commonly require separate GST treatment per leg, subject to the accountant's confirmation.
04
Most NZ commercial leases require makegood at lease end (returning the premises to original condition or a defined standard). Funding makegood out of operating cash 6 months before lease end is a recurring cash-flow shock; many tenants accrue against it across the lease term.
05
Some commercial leases include a landlord fit-out contribution or rent-free incentive period. The contribution typically offsets the borrowing requirement; many NZ tenants finalise the lease incentive position before sizing the fit-out finance.
06
A single $200K unsecured term loan at 16% indicative commonly costs more across the term than a $130K asset-finance leg at 11% plus a $70K unsecured term loan at 15%. The split structure pulls the blended rate below the unsecured-only structure.
Eligibility and lender criteria
Eligibility for fit-out and refurbishment finance in NZ commonly turns on five factors: trading history (or the operator's industry experience for a new venture), the project budget and quotes, the lease position, deposit and equity, and credit file. Trading history of 12 months reads stronger than first-day; specialist lenders write first-venture deals where the operator has substantial industry experience and a credible business plan.
The project budget and supplier quotes are scrutinised. Lenders typically prefer fixed-price quotes from named contractors with NZBN and trade qualifications; open-ended cost-plus arrangements widen the rate band. Where a separable asset finance leg exists (commercial kitchen, dental chairs, salon equipment), the lender prices that leg at the lower asset-finance band.
The lease position is reviewed because the lease term commonly defines the loan term ceiling. A 6-year lease comfortably supports a 5 or 6-year amortising loan; a 3-year lease typically caps the term at 3 years, often with an option-renewal review. Some lenders require sight of the executed lease before settlement on larger fit-out facilities.
Deposits commonly run 10% to 30% on fit-out term loans, with nil-deposit deals occasionally available on the asset-finance leg where the equipment has strong resale value. Personal guarantees from directors are standard across NZ SME fit-out finance, with PGs sometimes falling away on larger established multi-site operators.
Documentation commonly includes the executed or near-final lease, project budget with itemised quotes, NZBN registration, business owner ID, last 6 to 12 months of business bank statements (or comparable financials for a new venture), and (on amounts above $150,000) a recent P&L plus a 12-month cash-flow forecast showing how the fit-out repays. Decision timing is generally longer than working-capital lending because the project-finance review is more involved.
Lenders to know
The lender shortlist below is editorial. Indicative rate bands are general market observation, not a quote. Final pricing depends on the lender's assessment.
Best for NZ-bank term loans and asset finance
Registered NZ bank. Open for Business covers unsecured term loans for soft costs; the asset-finance arm handles commercial kitchen, dental, and joinery leg.
Indicative rate band:9% to 14% p.a.
Read onBest for asset finance on commercial kitchen and equipment
Long-established NZ asset-finance specialist. Strong on commercial kitchens, dental, salon, and retail joinery with separable resale value.
Indicative rate band:9% to 13% p.a.
Read onBest for fast unsecured for soft and trade-labour costs
Our finance partner. Small Business Loan and Line of Credit suit the soft-cost and trade-labour legs of a fit-out where asset finance does not apply.
Indicative rate band:12% to 22% p.a.
Read onBest for short-term fit-out for harder profiles
Short-term unsecured and caveat-secured lending for SMEs the major banks decline. Often considered for lease-renewal refits and first-venture hospitality.
Indicative rate band:15% to 28% p.a.
Read onBest for mid-market multi-site operators
Major-bank fit-out facilities secured against business assets, lease covenants, or supporting director property. Best rate band where security is available.
Indicative rate band:9% to 14% p.a.
Read onRate bands are indicative and based on general market observation, not a quote. Final pricing depends on the lender's credit assessment. We refer borrowers to Prospa via the calculator handoff; the broader directory is editorial.
References
Depreciation framework for fit-out and equipment term matching.
GST treatment framing for chattel mortgage versus lease structures inside a fit-out project.
Where asset-finance security on commercial kitchens and equipment is registered.
Building consent framework for commercial fit-out works.
NZ retail and hospitality activity context for fit-out volume framing.
NZ SME structure context for fit-out and refurbishment framing.
FAQ
Yes, fit-out and refurbishment finance is one of the most common reasons NZ SMEs borrow. Heartland Bank, UDC Finance, Prospa, BizCap, and the major-bank asset-finance arms all write substantial volume in this segment, with the structure typically blending asset finance over the fixed equipment leg and a term loan or line of credit over the soft-cost leg.
Indicative amounts run $30,000 to over $500,000 for SME fit-outs across the NZ market. A small lease-renewal refresh might sit at $30K to $80K; a full new-cafe shopfit commonly $120K to $250K; a dental or medical clinic build $200K to $500K plus.
Indicative rates run 9% to 18% per annum across the NZ market. The asset-finance leg over commercial kitchen, dental, or salon equipment prices in the lower band; the unsecured term-loan leg over soft and trade-labour costs sits in the higher band.
Lease as security is rare for SMEs in the NZ market. Most SME fit-out finance runs unsecured against the business or against personal guarantees from directors. Lease-secured fit-out facilities are more commonly seen on listed retailers and mid-market hospitality groups, where the lease covenant and assignment provisions support a first-ranking charge.
Common terms run 3 to 7 years across NZ fit-out finance. Many tenants align the loan term to within or just inside the lease term, so the fit-out is amortised before the next lease decision. Asset-finance legs over equipment with longer working life sometimes run beyond the initial lease term.
On the asset-finance leg of a fit-out where chattel mortgage is used, GST on the equipment cost is typically claimable in the next GST return where the business is GST-registered, subject to the accountant's confirmation on the specific business position. On finance and operating leases, GST is treated inside the rentals.
Interest on a loan or asset-finance facility used wholly for business-purpose fit-out and refurbishment is generally deductible against business income in New Zealand, subject to the accountant's confirmation.
First-venture fit-out finance is harder than refit finance for an established business, because trading history has not been demonstrated. Specialist lenders sometimes write first-venture deals where the operator has substantial industry experience, a credible business plan, fixed-price quotes, and a deposit at the higher end of the typical band.
A split structure (asset finance on equipment plus unsecured term loan on soft costs) commonly pulls the blended rate below a single unsecured term loan covering the whole project. Many NZ borrowers split the project across two facilities; the accountant or broker conversation typically tests the blended cost both ways.
Standard documents include the executed or near-final lease, project budget with itemised contractor quotes, NZBN registration, business owner ID, last 6 to 12 months of business bank statements (or comparable financials), and on amounts above $150,000 a recent P&L plus a 12-month cash-flow forecast.
Most NZ commercial leases require makegood at lease end. Many tenants either accrue against makegood across the lease term out of operating cash, or include a small makegood reserve inside the original fit-out term loan. Funding makegood out of working cash in the final 6 months of a lease is a recurring cash-flow shock.
On default of an unsecured fit-out term loan, the lender pursues recovery under the personal guarantee, with credit-file marks accumulating in parallel. On the asset-finance leg, the lender enforces the PPSR security against the equipment after the statutory notice period; the equipment is repossessed and sold, with any shortfall pursued under the personal guarantee.
Related
Buy equipment
The companion reason for the fixed-equipment leg of most fit-out projects.
Read onBuy a business vehicle
A sibling asset-purpose reason; many fit-out borrowers also finance a delivery van or work ute alongside the project.
Read onHospitality finance
Cafes, restaurants, and bars are a substantial share of NZ fit-out finance volume.
Read onHeartland Bank
NZ-bank term loans and asset finance for fit-out and refurbishment up to $500K.
Read onCafe loans
Cafe fit-out at $60K to $200K is the most common NZ fit-out lending scenario.
Read onHairdresser and barber loans
Salon fit-out, chairs, basins, and reception build commonly funded as a packaged term loan.
Read onDisclaimer
A business loan is a commitment that runs for months or years, and repayments come out of the same operating cash flow as everything else. Before committing, it is worth modelling the weekly and monthly cost against the business's working-capital position, which is what this site is built to help with. Borrowing at a level that stays comfortable through a quiet quarter, not just a strong one, is widely regarded as the safer frame.
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Tax-treatment statements (GST claim timing, interest deductibility, depreciation rates) are general in nature and subject to your accountant's confirmation on the specific business position. For material amounts, professional advice from a registered financial adviser or chartered accountant is widely regarded as the safer frame.
