Brexit creates unprecedented demand for warehouse fit out finance
Stockpiling due to Brexit fears is creating unprecedented demand for warehouse space which, in turn is creating growth in the market for financing of warehouse fit out.
Research has revealed that as many as 75% of warehouse operators are now at capacity, whilst others also benefit from the overflow of business. Warehousing costs close to major towns and industrial centres have risen by 30% as nervous suppliers continue to stockpile goods in anticipation of a no-deal Brexit.
Businesses have been seeking storage for goods ranging from food ingredients to cat food, packaging materials and finished consumer products. This is in an effort to ensure stocks do not run low in the event of no deal or any deal with the EU that slowed up the free flow of goods.
Operators with fully utilised space are investing in enhanced security and accessibility, leading to requests for funding of:
- Alarm systems
- Roller doors
- Handling equipment etc.
Meanwhile those who have found additional space are keen to make it operational as fast as possible. Resulting in funding requests for whole range of fit-out costs including:
- Mezzanine flooring
- IT/stock management
- Conveyor systems signage
- Floor markings
We are also seeing requests for specialist equipment such as X-Ray machines and chiller/cold rooms.
With instant demand and a potentially limited opportunity to fill, time is if the essence. Fortunately Fit Out Finance are able to respond very fast – usually a firm, lender-backed offer will be available within 24 hours and pay-out can be achieved within a couple of days from receipt of relevant information.
In some cases, retailers and wholesalers are extending their own storage capacity, leading to funding requests for containers or semi-permanent structures, all of which are suitable assets for Fit Out Finance to fund.
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Whether you are fitting out a warehouse, an in-house store or a specialist facility, Fit Out Finance will fund up to 100% of your fit-out costs.