Which finance to take on a bigger premises lease

2 min read

Deposit + fit-outUpfront

Higher running costsOngoing

Bridge to bigger revenueThe goal

The cost of scaling up space

Taking a bigger leased premises brings upfront costs — a deposit, often several months' rent, plus fit-out and moving — and higher ongoing costs before the extra space generates matching revenue. Financing the transition lets you scale up without a cash crunch, bridging to the point where the larger operation pays for itself. It is a growth bet, so the numbers must work. See finance to expand premises.

The routes

Cost	Best finance
Deposit + upfront rent	Short-term loan
Fit-out	Short-term loan
Equipment for the space	Asset finance or a loan
Higher early running costs	Revolving line

A short-term loan covers the deposit and fit-out; asset finance or a loan covers new equipment; a revolving line smooths the higher running costs until revenue catches up. Match each cost to the right tool. See finance for a deposit.

Make sure the space pays off

A bigger lease is a commitment — the higher rent runs whether or not the extra space delivers. Before signing, model the revenue the larger premises should generate against the higher costs, and make sure the transition finance is affordable even if growth is slower than hoped. Check it with our affordability guide.

The Credicorp view

For the deposit, fit-out and early running costs of a bigger lease, a short-term Credicorp business loan and a Credicorp Flex line bridge the transition until the space pays off — no personal guarantee. Register to apply. Educational content, not financial advice.

Frequently asked questions

How do I fund a move to bigger premises?

Match each cost to the right tool: a short-term loan for the deposit and fit-out, asset finance or a loan for new equipment, and a revolving line to smooth the higher running costs until revenue catches up. Financing the transition lets you scale up without a cash crunch, bridging to when the space pays for itself.

What should I check before taking a bigger lease?

Model the revenue the larger premises should generate against the higher rent and running costs, and make sure the transition finance is affordable even if growth is slower than hoped. A bigger lease is a commitment — the higher rent runs whether or not the extra space delivers, so the numbers must work.

Can one facility cover the whole move?

A flexible business loan can cover the deposit, fit-out and related costs together, giving cash to spend across the move. A revolving line then helps with the higher early running costs. Using a loan for the defined upfront costs and a line for the ongoing swings often works better than one facility for everything.