Signs your business is ready to leave home
The right time to move is when working from home is actively limiting revenue: you are turning down work for lack of space, customers or staff need somewhere to come, inventory has taken over the garage, or equipment needs power, ventilation or a loading door. Moving because a space feels more professional, without those pressures, is harder to justify.
- An online seller’s spare room can no longer hold enough stock to meet demand.
- A screen printer needs ventilation and three-phase power the house cannot provide.
- A bookkeeping practice hires two staff who need desks and client meeting space.
- A mobile mechanic keeps losing jobs that need a lift.
What the move actually costs
Move-in costs typically include a security deposit, one or more months of rent upfront, utility deposits and setup, business insurance for the space, signage, internet, furniture or fixtures, and any light fit-out such as paint, lighting or shelving. Landlords may ask a young business for a larger deposit or a personal guarantee. Budget every line before signing.
Then add the recurring side: rent, utilities, insurance, cleaning and maintenance, every month. The key number is not the move-in total but whether deposits comfortably cover your existing costs plus the new monthly rent in a slow month.
| Cost | Commonly funded with | Note |
|---|---|---|
| Security deposit and advance rent | Savings or working capital | Use-of-funds rules vary by funder |
| Fixtures, racking, furniture | Equipment financing | Match term to useful life |
| Signage, paint, light setup | Working capital | Check for a landlord allowance first |
| Tools and production equipment | Equipment financing | Ask about installation costs |
Office, shop, storefront or warehouse
Different spaces bring different costs. An office mainly needs furniture, technology and a deposit. A storefront adds fixtures, a POS system, signage and possibly more fit-out. A shop or small warehouse adds racking, workbenches, electrical upgrades and material handling equipment. Knowing which items are movable equipment helps you pick the right funding.
- Office: desks, computers, a phone system, meeting room furniture.
- Storefront: shelving, displays, POS, signage. See retail shops.
- Shop: workbenches, tools, compressors, ventilation. See small manufacturers.
- Small warehouse: racking, packing stations, pallet jacks. See e-commerce sellers.
Matching funding to move-in costs
Split the move into movable assets and one-time setup costs. Furniture, fixtures, racking, POS hardware and tools can often be financed as equipment over their useful life. Deposits, advance rent, signage and small setup items are commonly covered with working capital or a small term loan. Whether a funder allows deposits as a use of funds varies.
Compare equipment financing for fixtures and tools, working capital for one-time setup, and term loans if the whole move is a larger project better repaid over time. Requirements vary by product and funder; many look at time in business, monthly revenue and credit.
Before borrowing, ask the landlord whether a tenant improvement allowance or a rent-free period is available. Either can reduce how much outside funding the move needs.
The lease itself: read it with an attorney
A commercial lease is a long, binding contract, and it works differently from a residential one. Term length, renewal options, who pays for repairs and improvements, rent increases and any personal guarantee all matter. Have an attorney review the lease before you sign. That advice is specific to your situation and location.
Also check zoning and permits for your intended use with the local authority before signing, especially for shops, production work or customer-facing businesses. Many owners of young businesses prefer a shorter initial term with renewal options, so they are not locked in if the business grows faster or slower than planned.
A move-in funding plan in five steps
A well-planned move is funded in layers: savings for the first months of rent, equipment financing for movable assets, and working capital only for the one-time gap that remains. Work through the numbers before you tour spaces, so the lease you sign fits the business rather than the other way around.
- List every move-in cost and every new monthly cost.
- Test the new monthly total against your slowest recent month of deposits.
- Decide which costs are equipment and which are one-time setup.
- Ask the landlord about improvement allowances and deposit terms.
- Gather documents and apply for the gap, keeping a cash reserve for rent.
Frequently asked questions
What costs come with a first commercial lease?
Typically a security deposit, advance rent, utility deposits and setup, insurance, signage, internet, furniture or fixtures, and any light fit-out. Then ongoing rent, utilities, maintenance and insurance every month. Some leases also pass through shared building costs, so read the lease carefully with an attorney.
Can business funding cover a security deposit?
Sometimes. Whether a funder allows deposits and advance rent as a use of funds varies. Working capital is the most common option when it is allowed. Many owners cover deposits from savings and finance fixtures and equipment instead.
Will a landlord check my business credit?
Many landlords review the business and the owner, especially for a young company, and may look at bank statements, credit and time in business. A thin business file often leads to a larger deposit or a request for a personal guarantee. An attorney can explain what a guarantee means for you.
Should an attorney review my first commercial lease?
Yes. Commercial leases are binding contracts with terms that differ from residential leases, including repair responsibilities, rent increases, renewal options and personal guarantees. Have an attorney review the lease before you sign. That is standard practice and can prevent costly surprises.
How do I know the business can afford the rent?
Compare your slowest recent month of deposits with your current costs plus the new rent, utilities and insurance. If the space will not add revenue quickly, the business needs to carry the rent on current deposits alone. If that is tight, wait or choose a smaller space.
Outgrowing the house?
Apply once to see what your business may qualify for to fund the move, with no obligation.
Updated September 14, 2026 · PrimeBizFunder Funding Team