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On a small screen, scroll the table sideways to see every column.
| Budget item | Funding question | Contract check |
|---|---|---|
| Removable equipment | Could asset finance fit its useful life? | Ownership, security and whether it can be removed. |
| Building and installation work | How will staged contractor payments be funded? | Approvals, payment milestones and variations. |
| Design, permits and professional fees | Are these included in the loan or paid from cash? | When payment is required, including before approval. |
| Opening stock, wages and rent | What cash remains after the fit-out? | Allow for a delayed opening and slower initial sales. |
Read the lease before committing to the work
Establish permitted use, landlord consent, the lease period, options, ownership of improvements and make-good obligations. Obtain advice on the actual lease. A five-year repayment plan needs careful thought if the premises are secured for a much shorter period.
If the landlord offers an incentive or contribution, confirm when it is paid and which costs it covers. An expected reimbursement does not pay a contractor who needs a deposit now.
Separate a fixed quote from an estimate
List the agreed scope, excluded items, progress payments and approval dependencies. Allow a reasoned contingency for unexpected work rather than using the lender's maximum as the budget.
A refurbishment can also disrupt existing revenue. If a clinic closes for two weeks, the lost cash receipts and continuing wages belong in the funding plan alongside the contractor's bill.
Build a schedule around the work, not one invoice total
Break the project into design and approvals, deposits, building work, equipment installation, testing and opening. Record who must be paid at each stage and what evidence supports payment. This shows whether the finance needs to arrive in one amount or through a series of releases.
For a restaurant, refrigeration may need to be ordered before the space is ready. For a clinic, specialist equipment may arrive after structural work. Ask suppliers about lead times, storage, cancellation and what happens if the premises are delayed. A loan term cannot compensate for equipment that arrives too late to open.
Give the lender the itemised project budget and ask which items it accepts. It may treat a removable appliance differently from plumbing built into the premises. If part of the project must be paid from cash, preserve enough cash for the costs that cannot be financed.
Compare doing the work in stages with closing completely
A full closure can make building work easier but stop revenue. Staging may preserve some trading while extending disruption and contractor costs. Ask for a credible programme for each option, then compare the combined lost cash flow and project cost.
For illustration, a two-week closure losing $12,000 of contribution towards fixed costs and adding $3,000 of temporary expenses creates a $15,000 cash requirement beyond the works. Use contribution after avoided variable costs rather than treating every dollar of lost sales as the same loss.
Compare finance by what it pays for
Equipment finance may suit identifiable assets. A term loan may cover a broader project. A revolving facility may help with uneven cash requirements, but review its fees and access conditions. Different providers have different views on leasehold improvements and equipment attached to premises.
Ask what documents are required before funds are released, whether the lender pays suppliers directly and how changes to the project are handled. Approval of a total limit does not necessarily mean every cost can be drawn immediately.
Turn a landlord contribution into a dated receipt
If a contribution is reimbursement after approved works, the business may need to carry the contractor payment first. Confirm the evidence required, when reimbursement becomes due and any conditions for retaining it. A headline incentive amount is less useful than a payment date attached to the lease terms.
Have the lease adviser explain what happens to financed improvements when the tenancy ends. Consider the cost of removing equipment, restoring the premises and relocating, as well as any finance still outstanding. A fit-out that is valuable to the business may have little resale value outside that location.
Keep handover and opening cash in the budget
Before the final contractor payment, use the agreed handover process to check completion, defects and required documents with your adviser. Identify warranties, maintenance instructions and who to contact if a problem appears. The finance agreement may require repayments even while a supplier dispute is unresolved.
Opening costs can include stock, staff training, advertising, initial wastage and deposits for utilities or services. Keep these distinct from the construction contingency. Spending an unused building allowance before the venue begins trading can leave no reserve for a slower first month.
Compare actual sales and costs with the opening forecast weekly at first. If the business is established, allow time for customers and staff to adapt to the changed space. Use the first trading results to control discretionary spending rather than assuming the full forecast revenue begins on opening day.
Budget a month with no opening takings
Move the opening date back a month and leave every unavoidable payment in the forecast. For an illustrative venue with $5,000 rent, $8,000 committed wages and $2,000 finance payments that month, the delay needs $15,000 before extra building work or other bills. Replace those assumptions with your own commitments.
Identify which payments really can move and which cannot. A forecast that delays wages, rent and repayments automatically alongside revenue can hide the cash problem. Confirm the treatment with the landlord, suppliers and financier where relevant.
Finish the lease review and project scope before selecting finance. A usable premises and enough opening cash are both part of a completed fit-out; spending the full facility on the physical work leaves the business vulnerable before its first sale.