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Fitout Finance · Operating Lease

Fitout operating lease

Fund fitout on operating lease and rent it for a fixed term with predictable cost, then hand it back. Indicative rates From ~7.6% p.a. (prime borrower) — subject to credit.

Quick answer

Fitout finance structured as operating lease means you rent it for a fixed term with predictable cost, then hand it back. Fitout finance funds the build-out cost of retail stores, hospitality venues (cafes, restaurants, bars), professional offices and clinics — including cabinetry, joinery, kitchen and bar equipment, refrigeration, lighting, flooring, signage, security and AV. Most NZ fitout finance is structured as hire purchase or chattel mortgage on the itemised supplier invoices.

Is operating lease right for fitout?

Operating leases suit fast-moving equipment such as IT hardware that you refresh every two to three years and prefer to hand back rather than own outright.

About fitout finance

Fitout finance funds the build-out cost of retail stores, hospitality venues (cafes, restaurants, bars), professional offices and clinics — including cabinetry, joinery, kitchen and bar equipment, refrigeration, lighting, flooring, signage, security and AV. Most NZ fitout finance is structured as hire purchase or chattel mortgage on the itemised supplier invoices. Indicative rates from ~7.6% p.a. with terms typically 36–60 months matched to the lease term and useful life of the fitout.

Why operating lease

  • ✓Off balance sheet in some accounting treatments (subject to IFRS 16)
  • ✓Lease payments are typically fully deductible operating expense
  • ✓Residual-value risk sits with the lender, not you
  • ✓Maintenance, servicing, tyres and registration often bundled (fully maintained operating lease)
  • ✓Hand the asset back at end — no resale hassle

Trade-offs to weigh

  • –You never own the asset
  • –Early termination fees can be material
  • –Mileage / utilisation limits apply — overage charges if exceeded

Fitout finance at a glance

Indicative rate
From ~7.6% p.a. (prime borrower) — subject to credit
Typical term
36–60 months (matched to lease and useful life)
Deposit / LVR
Up to 100% of itemised supplier invoices (established business)
Lenders
UDC Finance, Heartland Bank, Spinach

What you can fund

Retail shop fitouts — cabinetry, displays, lighting, POSCafe, restaurant and bar fitouts — kitchen, refrigeration, joineryOffice fitouts — workstations, partitions, meeting rooms, AVClinic and salon fitouts — chairs, cabinetry, treatment roomsSignage, branding and exterior fitoutSecurity, access control and CCTV

How operating lease is treated

Ownership during term Lender
Ownership at end of term Lender — you hand it back
Who claims depreciation Lender
GST treatment GST on each lease payment

See the full breakdown in the operating lease guide, compare all four structures on the comparison page, or read more on fitout finance.

Rates, terms and LVR are indicative market ranges for guidance only — not a quote, not financial or tax advice, and subject to lender credit approval. Confirm tax and accounting treatment with your accountant.

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Frequently asked questions

Yes. Operating Lease is a common way to fund fitout for New Zealand businesses — it means you rent it for a fixed term with predictable cost, then hand it back. An operating lease is a rental arrangement where your business pays to use an asset for a fixed term without taking on ownership. The lender carries the residual-value risk — at the end of the term you simply hand the asset back. All applications are subject to lender credit approval.