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In this guest feature, Rap Interiors discusses the 6 benefits that financing your office fit out and refurbishment projects can provide, enabling your organisation to create the ideal workspace whilst spreading the cost of your investment over time.
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An office fit out is a substantial investment for any business. With extensive works involved, creating the ideal workspace can seem out of reach for some, while others may still consider it an ambitious or high-risk venture.
This is where office fit out finance comes in. With finance, you can spread the cost of your investment over a set repayment term, meaning your office aspirations could be more achievable than you think.
As you will discover, there are a number of advantages to investing this way, from tax savings to improved cash flow. It’s for these reasons that more companies are paying via finance and realising their office interior design ambitions.
Read on to learn more about why finance can be a game changer for ambitious businesses like yours…
Businesses are often the victims of their own success when it comes to tax. For successful private companies, the more profit they make the more corporation tax they pay. The same applies for sole traders, who are hit with income tax increases in accordance with their profit margins.
The good thing about office fit out finance is that all the repayments (both the capital and the interest) are 100% tax deductible. This can be a major plus for many companies (especially those that are cash rich), as they are able to keep more money in the business and distribute it in areas that maximise profitability.
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When carrying out a fit out, your new workplace assets (e.g., office furniture and tech) should help to grow your business. While they do improve workflow and productivity, these elements invariably need replacing at some point.
As such, by investing upfront and in full, you’re essentially locking your capital into depreciating assets. That’s why many companies spread the cost of their fit out or refurbishment in line with the return on investment over time.
Indeed, with finance, you can pay for the office assets over an extended period, rather than in one lump sum. This frees up cash to be deployed in areas of the business that garner greater and faster returns, such as staff, sales, or marketing campaigns.
By financing the project, you can make an investment decision based on your needs rather than budget limitations. Remember, office fit out finance allows repayments over an extended term, so you can invest in the project even if you don’t have readily available cash.
This means you can have the best of both worlds: a new office that boosts productivity and cash reserves available to deploy in places that generate strong returns. What’s more, without the need for a large down payment, you can potentially take on a more ambitious project that might be outside your reach with traditional financing methods.
When investing in an office fit out, it’s important to weigh up the risk involved. For example, if you are thinking about paying one lump sum in full, you need to consider how this will affect cash flow. If your cash flow is likely to be stretched, then this can put great strain on the business and those who work there.
In contrast, finance represents a more calculated risk, as it allows you to preserve your working capital and see ROI in line with the spending spread across the payment term. Additionally, the interest rate is fixed, meaning you won’t face large payment spikes that drain your financial resources.
Carrying out an office fit out is a major undertaking. From creating an interior design scheme to conducting the construction work to sourcing the workplace furniture, there’s a lot involved in a transformation.
This begs the question, what aspects of the interior fit out project qualify for finance? The answer: all of them! With fit out financing, you can combine all your project costs, including fees, design, labour, and delivery charges in one low, fixed monthly or quarterly payment, something that cannot be achieved if you utilise cash where full relief is limited to qualifying assets.
With office fit out finance, your payments are affordable and fixed for the duration of the agreement. There are no hidden surprises or hikes should interest rates rise in the future.
The benefit of this is better cost control. With equal monthly payments, it’s easier to factor the cost into your overall business budget. This makes for more accurate costing throughout the project and across the payment term, giving you peace of mind when investing.
Just remember, financial firms should be transparent with you on this. You don’t want to be hit with an unexpected interest rate hike due to something written in small print, so be diligent when seeking options.
Ultimately, financing allows you to achieve your office design aspirations without sacrificing financial stability. By spreading the cost of your investment, you don’t have to compromise on quality or scale back on workplace elements that will make a positive difference to your team.
Indeed, with finance, there is nothing stopping you unlocking the full potential of your workspace and business. When used in accordance with an efficient office fit out plan, you can forge a path to success and launch the business into a new era of growth.
Securing the finance that you need to move forward does not need to be a complex or lengthy process. Whether you are looking for an instant (no-obligation) quote or want to submit a finance application, Bluestone’s innovative online system, the Bluestone Portal , makes the task simple and quick.
“It’s always a pleasure working with Rap Interiors and being able to support them and their clients on many projects. Rap’s consultative approach means they discuss all aspects of a project with their clients, including how it will be paid for. As fit outs and refurbishments are very different to singular asset purchases, they take the time to inform clients of an alternative approach to paying with cash – this allows them to save money and maintain cash reserves for deployment elsewhere, for example where they can derive a financial return. It’s a holistic approach that sets them apart from their competition. I look forward to continuing working with Rap.”
Last Updated: April 2024. Version: BS.202404.01BL79
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