Good Customer Outcome – Fitout Finance for a new Retail Outlet

  • 24 April, 2019
  • Sharon Piening

I was able to achieve a good customer outcome for a client seeking Fitout Finance for a new retail outlet.

Whilst the client was an experienced retailer, the finance was for a start-up outlet in a new shopping centre.

Fitout Finance for a new retail outlet - The challenge!

Fitout finance for a new retail outlet at times can be challenging, in this case:

  • The business operated in a tough industry segment
  • It was to be located in a new, unproven Shopping Centre
  • The proposal involved sale and lease-back which is not favoured for this type of finance
  • The Fitout involved multiple suppliers
  • 100% financing was required

The Bankers Position

The client had approached their bankers for the finance however they were only prepared to:

  • Fund 50% of the project cost
  • Provide a 3-year payback period
  • Finance on the basis of no residual
  • Assist if supporting freehold security was provided

The pathway to a Good Customer Outcome

After reviewing the applicant’s circumstances and given their track record, I felt it should be possible to obtain the finance they were seeking, so I:

  • Workshopped the proposal with our team. An outcome of this was to offer a caveat over property instead of a mortgage in exchange for a 4-year term and to provide Lenders with additional comfort
  • Prepared a detailed Finance Proposal – which included analysis of Financial Projections provided by their Accountant for the new venture
  • Approached our panel of Fitout Specialist Lenders

Fitout Finance for a new retail outlet - Good Customer Outcome Achieved

After a period of negotiation, a successful outcome was achieved:

  • 100% finance obtained
  • 4-year term aligned to cashflow
  • 10% residual
  • Established a relationship with a financier external to their main provider – which is important from a business risk management perspective


In business it is important to always have options or a fall-back position, particularly when it comes to finance.

Fitout Finance is specialised and because of its complexity, it is not favoured by some of the Banks.

The keys to success were:

  • The ability to work with my team to find a solution aligned to the customer needs
  • Persistence, and sourcing Fitout Financing Lenders prepared to; lease-back, finance 100% of the costs and include a soft cost component
  • Organisation and attention to detail to deliver the client a quality experience

If you are considering Fitout Finance for a retail outlet download our FREE Fitout Finance Handbook.

If you would like to understand the options available, don’t hesitate to give me a call on 0433 210 353