Opening a new childcare centre is a significant achievement, but the real opportunity begins once occupancy starts to build. For one family-owned early learning centre in Victoria, the focus wasn't just on growing enrolments. It was about creating the financial flexibility to invest in the future.

After opening in 2023, the centre had established a solid foundation, reaching around 70% occupancy with profitability steadily improving as enrolments increased. While the business was performing well, the owners wanted to repay the director loans they had used to help establish the centre. Releasing these funds would allow them to invest in future childcare opportunities while following a tax-effective strategy recommended by their accountant by reducing non-deductible home loan debt.

The challenge was that their existing bank wouldn't release the equity. Despite the centre's strong trajectory and improving financial performance, the lender focused on the business still being in its growth phase rather than recognising its future earning potential.

That's where Ligo Finance made the difference.

Our team took the time to understand how the centre operated, how occupancy translated into revenue and profitability, and what the business would look like as enrolments continued to grow. We prepared a comprehensive funding submission that clearly demonstrated the centre's financial outlook, supported by management accounts, cash flow projections, and an independent valuation from the bank's own panel valuer.

Rather than moving the client to another lender, we successfully worked with their existing bank to overturn its original decision.

The result was a $686,000 term loan structured with interest-only repayments for three years, giving the owners immediate access to the funds while preserving cash flow for future investment.

Today, the family is using that capital to position themselves for further childcare acquisitions while benefiting from a more tax-effective financial structure. At the same time, surplus funds are being offset against their personal home loan, helping reduce non-deductible debt faster and strengthening their overall financial position.

At Ligo Finance, we know that childcare funding is about more than numbers. It's about understanding the unique drivers of the sector, presenting the right story to lenders, and creating finance solutions that support long-term growth—not just today's needs.