A rapidly expanding regional NSW childcare centre owner-operator was facing a capital shortage that threatened to stall their ambitious growth plans.

With four turnkey childcare centres scheduled to start operations within 12 months, and the first due to open in just four months, they needed funding fast.

But, when they approached their lender for funding to support the expansion, the offer fell short: just a $250,000 unsecured overdraft at 15.65% interest.

It wasn’t enough. Each new centre needed around $300,000 to set up, including $100,000 for rental bonds and $200,000 for working capital.

Without proper funding, the owner would have to dip into cash flow from their existing operation, putting day-to-day services under pressure and potentially compromising the quality of care for children.

That’s where Ligo Finance stepped in. Using our experience in the childcare sector, we worked with the client’s lender to put together a tailored funding package, which included:

  • A term loan: $1,250,000 secured against two proposed centres
  • A rental bond facility: $300,000 bank guarantee limit, secured against existing cash-backed bonds
  • Asset finance: $200,000 for future equipment and business asset purchases

This funding structure allowed the owner to make strategic, stress-free decisions about their expansion without affecting operational cash flow.

With confidence restored, the operator has successfully acquired four new turnkey childcare centre sites to be opened within 24 months, transforming from a single-centre operation into a growing regional childcare provider.

Thanks to Ligo Finance’s tailored approach, the owner can now focus on what matters most: ensuring their centres remain safe, high-quality spaces for children.

Expanding your childcare operations? Ligo Finance provides funding solutions designed for owner-operators. Get started now.