Childcare Centre Finance

Like any business purchase, your return on investment is hinged on ensuring your funding is both cost competitive and astutely structured. Green Finance Group is one of a very small number of Australian finance brokerages that can legitimately claim to specialise in providing finance solutions for the childcare industry.

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Childcare Centre Lending Guidelines

The amount of money you can borrow for your childcare business, the interest rate discount and loan terms, which ultimately impact business profitability, will be directly influenced by several factors including (but not limited to):

  • Your experience and background
  • The financial strength of the childcare centre
  • Expected future demand for childcare places in the location
  • The results from the valuation of the centre
  • Your personal financial position
  • How much money you are borrowing compared to the value of the childcare centre and any other assets used in the transaction

The higher the bank’s perceived risk of your business, the higher the all-up rate or cost of your funding. It’s important to note that every lender will weigh risk factors differently and can change their policy regularly.
In the current market the maximum loan to value ratio (LVR) you can obtain for a childcare centre business is:

  • Freehold Going Concern (commercial): up to 70% of an independent valuation for purpose-built childcare facilities
  • Freehold Going Concern (residential): up to 70% of an independent valuation for purpose-built childcare facilities
  • Freehold Investment – up to 70% of an independent valuation of the Childcare Centre
  • Leasehold Purchase – up to 60% of an independent valuation of the business

Typical Loan to Value Ratios (LVRs) provide a guide only and the strength of your individual business case will impact upon your final loan terms and interest rate discounts.
In instances where other security is available, it may be possible to borrow over 100%.
Your experienced Green Team finance broker will be in the best position to provide you with an indicative assessment of your borrowing capabilities with a range of banks and lenders and further negotiate on your behalf.


Need finance for your childcare centre? We can help.

  • Competitive business finance for owner operators and leasehold operators
  • Refinancing – ask us how we can better your current terms, possibly with your existing lender
  • Loan terms up to 10 years commercial/15 years residential, with interest only periods available
  • Lines of credit
  • Construction finance for new owner operators
  • Finance for renovations or extensions for existing businesses

Your Green Team finance broker will guide you through all related processes including due diligence, business planning and cash flow management. We will package and present your finance application to the chosen lender on your behalf. And of course, where possible we will negotiate savings to find a better finance deal.
Our aim is to ensure the best outcome for your business whether it is to get you up and running, negotiate better loan conditions, save you money, or all of the above.

Our Childcare Centre Finance Specialists

Daniel Green


Australia's leading hospitality, accommodation and childcare finance specialist and winner of Australian Broker of the Year 2022.

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