Childcare Centre Lending Guidelines

The amount of money you can borrow for your business will differ from lender to lender, from a few dollars to hundreds of thousands of dollars.


Typical Loan to Value Rations (LVRs) provide a guide only and naturally the strength of your individual business case will impact upon your final loan terms. In instances where other security is available, it may be possible to borrow over 100%. Your 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 secure lenders. 

Typical Loan to Value Ratios (LVRs) offered in today’s marketplace:

  • Freehold Going Concern – up to 70% of an independent valuation of the Childcare Centre
  • Freehold Investment – up to 70% of an independent valuation of the Childcare Centre
  • Leasehold – up to 50% of an independent valuation of the Childcare Centre
To secure finance approval you will need:
  • A formal valuation usually completed by your lender’s preferred valuer and generally at your cost
  • A full history of your industry or related business experience
  • Thorough due diligence of the Childcare Centre
  • Business Plan and Budgeted Cash Flows
  • Confirmation of accreditation and licensing
  • Three years financial statements for the Childcare Centre
  • Details of assets and liabilities for purchaser/s and guarantor/s
  • Income tax returns for the past two years for purchaser/s and guarantor/s

The team at Green Finance Group are Childcare Finance Specialists with extensive banking and financial industry experience. We are on your side and will guide you through all related processes including due diligence, business planning and cash flow management, and of course, we’ll show you where and how to negotiate savings to find a great deal on your finance. 

 


 

Find a better finance deal for your childcare centre today:

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