A newly established long day care service on the NSW North Coast had achieved strong occupancy and built an excellent reputation within its first year of operation.

The owners had ambitious expansion plans, with six turnkey childcare developments expected within the following 18 to 24 months and a broader vision to establish up to nine new centres over three years.

While the business was performing strongly, its limited trading history created challenges when approaching lenders. The group needed a funding solution that would provide access to capital for setup costs, staffing, resources, fit-outs and working capital without placing unnecessary pressure on day-to-day cashflow.

As childcare finance specialists, Ligo Finance worked with the client to present a compelling growth strategy supported by detailed financial modelling and industry-specific insights.

Leveraging the group's strong operational performance, occupancy results and expansion plans, we secured a dedicated acquisition funding facility exceeding $2 million.

The structure was designed specifically to support childcare growth and included:

  • Flexible access to capital as new centres progressed
  • Interest-only repayments during the initial growth phase
  • Access to working capital for wages, resources and startup costs
  • A scalable structure designed to support future expansion

The Outcome

The facility provided the group with certainty and confidence to proceed with its growth plans.

Rather than seeking funding each time a new opportunity arose, the client now had a dedicated capital solution ready to support centre openings as they progressed. This reduced operational pressure, protected cash flow and ensured the business could focus on successfully launching new services.

With funding in place and a clear pathway forward, the group is well positioned to expand its footprint across the NSW North Coast and continue building a high-quality childcare network.