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Lease or Finance Options for your Office Fit Out or Refurbishment project in Glasgow or Edinburgh

Lease or Finance Options for your Office Fit Out or Refurbishment project in Glasgow or Edinburgh

Is the Cost of Office Fit Out or Refurbishment too High to Pay Upfront in Full?

Undertaking a complete refurbishment or fit out of your office can be quite costly. However, it is also necessary. The right furniture, style, design and “feel” of the office space altogether can transform your business for the better.

In other words, postponing or cancelling the refurbishment completely is not the best option for your business.

But what are you to do when budgets are tight and your company has cash flow issues?

At Amos Beech we love offering complete solutions to our clients. This is why we have partnered with the top financial company in Scotland to provide our clients with turnkey answers to their needs: office fit out, refurbishment AND flexible financing solutions.

Meet the Perfect Financial Solution for Your Office Fit Out or Refurbishment

When budgets are tight, but the project has to be completed, you typically have three options:

  1. Bootstrap and pay everything upfront

  2. Get a loan from a bank

  3. Lease the project

Paying cash upfront is ideal if the payment won’t leave your company vulnerable. Plus, keep in mind that the total cost of the refurbishment or office fit out might exceed £200,000, the annual investment allowance (AIA). Thus, you won’t be able to offset the entire expense.

A bank loan can typically be paid between one and 10 years. You can deduct each payment against AIA, but the interest rates (that are subject to fluctuations) can make it hard for you to plan your finances for the long term. Plus, you run several other risks if the loan is tied to some of your crucial assets. Furthermore, a bank loan may not cover all the expenses related to your project.

A lease, on the other hand, can cover everything, from design and build to furniture. You can also write the payments off as expenditure. And, since the payments are fixed, they are also easy to budget for. Your cash flow is protected since you don’t need a large deposit. You would lease purchase and only pay a token to transfer ownership at end of the payment plan.

The current lease conditions are quite flexible and friendly for Scottish businesses.


Because leasing is not yet as popular here as it is in the USA or other European states. However, as its popularity begins to grow, the advantages are likely to diminish.

You can opt for three types of leasing for your refurbishment or fit out project:

  1. Contract hire. With no big initial outlay, you simply enjoy the use of the assets. The finance company owns them, but they are also responsible for their maintenance. This is the most affordable option.

  2. Lease purchase or hire purchase. At the end of the fixed period, you own all the assets. If you are a VAT-registered business, you can also claim back the VAT on the entire asset up-front. Also, you can offset interest payments against profit.

  3. Financial lease. Just like above, you can offset payments against tax and reclaim VAT. The only significant difference from lease purchase is that you don’t own the assets at the end of the lease. You can, however, buy them at any point (depending on your leasing contract).

How Leasing Unties Your Capital

Your capital is the backbone of your company. When you can’t make the investments you need, your growth is stalled. This is why it’s always a good idea to have a healthy cash flow and a healthy investment capital instead of tying it up in various assets and/or overdrafts.

Leasing your office fit out or refurbishment project can help you:

  • Stay liquid: no large initial payment means that your cash flow is not significantly affected and remains free to be invested in the next great opportunity that knocks at your door.

  • Budget accurately: unlike in bank loans, in lease financing your payments are fixed because they are not subject to interest rates. So you know exactly what you will be paying today and two years from now.

  • Keep your bank credit lines free: your bank overdrafts are unaffected, so you can always use them for investment opportunities.

  • Buy cheaper: leasing can actually be cheaper than paying for the refurbishment of your office upfront. Even if the project exceeds the annual investment allowance of £200,000, you can still deduct all your leasing payments.

  • Tax efficient: for private sector organisations leasing provides a highly attractive fully tax deductable solution. In addition to that the VAT is spread as it is paid on each repayment.

  • Stay flexible: the typical lease is between three and five years, but you can always opt for a personalised length of contract that fits your monthly budget and your needs.

  • Start your project quickly: bank loans and credit lines can take months to be approved. A lease financing can take as little as a few hours.

Who is it for?

  1. Public sector: by spreading the costs, the projects can be delivered as and when they are needed most.

  2. Charities: have a duty to trustees to make budgets work as hard as possible and get the VAT to spread, as most charities can’t claim the VAT back.

  3. Professions: like doctors, lawyers, accountants, dentists and vets, but also partnerships are all subject to higher rates of tax and the tax benefits need to be explored.

  4. Large Corporates: having lots of available capital doesn’t mean that you shouldn’t explore tax benefits. The available cash can then be used where it most benefits the business.

  5. SMEs: with the saved capital, new people can be recruited to grow the business.

Don’t Postpone Your Office Fit Out and Refurbishment. Be Smart about it Instead!

At Amos Beech, we know a lot about how office interiors can shape and transform your corporate culture. From better acoustics to switching to activity-based working, we’ve seen seemingly minor improvements bring great results.

This is why we have partnered with the top lease financing company in the country to offer you the flexibility you need to reap the benefits of office refurbishment and fit out NOW, not in a couple of months or years.