Childcare Specialist Lenders • Credit Assistance

Childcare Centre Business Loans — Compare Options

Acquire, expand, or refinance your childcare business. We match you with lenders who understand CCS revenue streams, goodwill valuations, and the childcare regulatory environment.

70%

Max LVR

15 yrs

Loan Terms

$15M

Max Loan

Start Your Free Assessment → See How Matching Works

🔒 No credit score impact • No cost to you • ASIC Credit Rep #574070

Important Information

Esteb and Co provides credit assistance services. We are licensed credit representatives (ASIC Credit Rep #574070) who help you compare loan options from our panel of lenders. We do not lend money directly. All loan approvals are made by lenders, subject to their criteria and responsible lending assessments. Our service is free to you - we receive commissions from lenders. Read our Credit Guide

Can You Qualify? Quick Assessment

Key requirements lenders look for in childcare centre loans

Requirement	Minimum	Ideal
Occupancy Rate	70%+	85%+
Licensed Places	25+	50+
Trading History	12 months	2+ years
Staff Costs	Under 65%	Under 55%
Interest Cover Ratio	1.5x	2x+

Don't meet all criteria? Options still exist. Start your assessment — we'll identify which lenders suit your situation.

Maximum LVR by Purchase Type

Understanding how much you can borrow

Purchase Type	Max LVR	Typical Terms
Freehold Going Concern (Purpose-Built)	Up to 70%	10-15 years
Freehold Going Concern (Converted)	Up to 65%	10-15 years
Freehold Investment (Tenant Operated)	Up to 70%	10-15 years
Leasehold Purchase	Up to 60%	5-10 years
Construction/New Build	Up to 80% of costs	Interest-only during build
Fit-Out & Renovation	Up to 90% of costs	3-7 years

Over 80% LVR? Possible with additional security (residential property, term deposits, or guarantor support).

Childcare Centre Loan Types

Finance options for every stage of childcare ownership

🏢

Centre Acquisition

Freehold or leasehold purchases of existing childcare centres.

Construction & New Builds

Greenfield development finance for new childcare centres.

For operators

✓ Up to 80% of total development costs
✓ Progress draw-downs (5-6 stages)
✓ Interest capitalised during construction
✓ No repayments until centre opens

🔨

Fit-Out & Renovation

Meet NQS and building compliance requirements.

Fast approval

✓ $50K – $3M available
✓ Up to 90% of project costs
✓ Progress payments or lump sum
✓ Terms 3-7 years

💵

Working Capital

Bridge CCS payment gaps and manage cash flow.

24-48 hr approval

✓ $20K – $500K
✓ Approval in 24-48 hours
✓ Unsecured options available
✓ Flexible drawdown and repayment

📈

Portfolio & Multi-Site

Finance multiple centres with consolidated facilities.

Volume pricing

✓ Cross-collateralisation options
✓ Consolidated reporting
✓ Bulk purchasing power on rates
✓ Dedicated relationship manager

🔄

Refinancing

Better rates or release equity for growth.

Equity release

✓ Consolidate multiple facilities
✓ Release equity (up to 70% of value)
✓ Restructure for better cash flow
✓ Switch lenders for better terms

How Childcare Centres Are Valued

Understanding valuation helps you prepare stronger applications

Capitalisation Rate (Cap Rate)

Formula: Property Value = Net Operating Income ÷ Cap Rate

Example: $200,000 NOI ÷ 6% = $3.33M value

• Metro (Sydney, Melbourne): 5.0% – 6.5%
• Regional Centres: 6.5% – 8.0%
• Rural Areas: 7.5% – 9.0%

Lower cap rate = Higher valuation

Per-Licensed-Place Valuation

Formula: Business Value = Licensed Places × Value Per Place

Example: 75 places × $25,000 = $1.875M value

• Premium Metro (High Occupancy): $30K – $50K
• Standard Metro: $20K – $35K
• Regional: $15K – $25K
• Leasehold: $10K – $20K

Values vary by occupancy & location

EBITDA Multiple

Formula: Business Value = EBITDA × Multiple

• Strong performers: 3.5x – 5x EBITDA
• Average performers: 2.5x – 3.5x EBITDA
• Underperformers: 1.5x – 2.5x EBITDA

Based on operational performance

Get Your Centre Valued →

Government Grants & Support

Additional funding sources for childcare operators

🏛️ Community Child Care Fund (CCCF)

The Australian Government offers grants through the CCCF for:

New services in underserved areas — Capital funding for centres in childcare deserts
Disadvantaged community access — Support for centres serving vulnerable families
Sustainability support — Funding to prevent centre closures
Capital upgrades — Grants for facility improvements

Eligibility: Must be an approved CCS provider or applying to become one.

💰 Child Care Subsidy (CCS) — Your Revenue Backbone

Government-backed revenue that makes childcare attractive to lenders:

Up to $80,000 family income: 90% CCS rate
$80,000 – $530,000: Sliding scale (90% → 0%)
Over $530,000: 0% CCS rate

Why this matters to lenders: Up to 90% of your fee income is government-guaranteed, making childcare one of the lowest-risk industries for lending.

Childcare-Experienced Lender Network

We compare lenders who understand the childcare industry

🏦 Major Banks

Commonwealth Bank NAB Westpac ANZ

Best for: Lowest rates, established centres with property security, 70%+ LVR

🏦 Specialist Childcare Lenders

Finexia Liberty La Trobe Financial Thinktank

Best for: Higher LVRs, goodwill-heavy deals, interest capitalisation, faster approvals

🏦 Non-Bank & Alternative

Judo Bank Prospa Scottish Pacific Get Capital

Best for: Speed, flexibility, working capital, centres with minor credit blemishes

Lender availability and criteria may vary. Not all lenders suitable for all circumstances.

Real Example: Childcare Centre Acquisition

See what our matching process looks like

📋 The Situation

Emily, an experienced centre manager, wanted to buy the 55-place centre she'd managed for 3 years.

Purchase Price: $1.8M (freehold going concern)
Deposit Available: $450K (25%)
Loan Required: $1.35M (75% LVR)
Occupancy: 88%
EBITDA: $240K

Challenge: Limited personal assets beyond deposit.

✅ Matching Results

Matched Lenders: 4 strong matches
Solution: Specialist lender accepting 75% LVR on freehold childcare with strong occupancy
Term: 15 years, 2 years interest-only
Rate: 6.95% variable
Monthly Payment: ~$7,800 (interest-only period)

Why this worked: Strong occupancy (88%), experienced operator, good EBITDA margin, government-backed CCS revenue.

All approvals subject to lender assessment

Results shown are indicative only. Individual circumstances, lender criteria, and market conditions will affect actual outcomes. We provide credit assistance to help you compare options.

Frequently Asked Questions

Common questions about childcare centre finance

What deposit do I need to buy a childcare centre?

Typically 25-40% depending on purchase type. Freehold going concern: 25-30%. Leasehold: 35-40%. Additional security (like residential property) can reduce deposit requirements.

Do lenders accept goodwill as security?

Some do. Specialist childcare lenders may accept 30-50% of the loan secured against goodwill, with the remainder against property or personal guarantees. Pure goodwill deals typically require higher deposits (35-40%).

What occupancy rate do I need?

Most lenders prefer 70%+ for established centres. New centres or acquisitions can sometimes qualify based on projected occupancy, waitlist data, and demographic analysis.

Can I buy a childcare centre with no experience?

Difficult but possible. Lenders strongly prefer operator experience. Options include: partnering with an experienced operator, retaining existing management, or completing childcare management qualifications before applying.

How long does approval take?

Working capital: 24-48 hours. Equipment/fit-out: 3-7 days. Acquisition (straightforward): 2-3 weeks. Acquisition (complex/low deposit): 4-6 weeks. Construction: 4-8 weeks.

Richard (Ricky) Esteb

Licensed Mortgage Broker & Founder

Credit Rep #574071 ACN 681 636 056 83+ Lender Panel

With direct experience helping Australians secure home loans, car finance, and business funding, Ricky founded Esteb and Co to bring transparency and technology to mortgage broking. Every piece of content is written from real-world lending experience.

✓ Verified & Last Reviewed: January 2026 | Content meets ASIC regulatory requirements