INDUSTRY SPECIALISATIONS

Early learning centre operators represent a distinctive sector that is currently undergoing rapid expansion fuelled by surging demand, and faced with challenges such as increasing regulation, formidable hurdles of high labour costs, persistent staff shortages and elevated churn rates, and the ever-mounting capital expenditures. Securing the appropriate financial backing is an absolute imperative for the childcare centre operators. 

Our credentials as experts in funding the childcare industry position us uniquely to navigate its complexities. Drawing upon our extensive knowledge and experience, we specialise in securing competitive debt structures for the sector operators, who can access up to 70% of both the freehold going concern and leasehold value of the businesses. Our involvement spans the full spectrum of childcare centre financial needs, from facilitating major upgrades to enabling the establishment of greenfield sites, as well as funding strategic acquisitions and multi-centre expansions. What sets us apart is our deep involvement in and intimate understanding of this dynamic and challenging sector, enabling us to unlock financial opportunities that others might overlook. 

Manufacturers and Wholesalers are faced with funding complexities due to their nature, characterised by prolonged working capital cycle and intensive capital needed to set up and run operations. Our expertise enables operators in this sector to seamlessly access short-term funding that bolsters their cashflow. Leveraging our extensive network of lenders, we can secure up to 95% of debtor and 100% of inventory value, tailoring a financing solution closely aligned with the business's trade cycle. In addition to traditional methods that primarily consider balance sheets and tangible assets, we excel in evaluating businesses by placing significant emphasis on sustainable earnings and cashflows. 

Whether your objectives involve acquiring or importing pre-made machinery or embarking on the development of bespoke equipment with a multimillion-dollar price tag, our team diligently sources the most optimal financing options. With the comprehensive panel of banks and non-bank lenders at our disposal, we orchestrate and facilitate funding for a wide array of needs, including equipment, industrial premises, distribution centres, and more, all under competitive terms and affordable rates. Our commitment is to make financial dealings as effortless as possible for you.  

Development funding is complex, and the available choices are contingent upon several factors, such as project size and type, the presence of pre-sales or lease commitments where relevant, the financial robustness of the sponsor, and the sponsor's development expertise. Leveraging our extensive array of bank and non-bank financing options, we possess the capability to facilitate negotiations for funding various phases of the development lifecycle: from land acquisition and construction to residual stock financing.

Opting for bank financing is typically the preferred route, as it often offers a cost advantage over alternative avenues. However, this approach may necessitate a substantial equity contribution from the sponsor and adherence to stringent eligibility criteria and loan conditions. Non-bank and private lenders represent viable financing alternatives that boast less rigorous prerequisites compared to traditional banks. While these loans may carry higher interest rates, they can be more attainable for developers with a less established track record in the development realm.

In the realm of self-managed superannuation funds (SMSFs), the capacity to secure loans for investments in both residential and commercial properties remains a viable option. However, it is imperative to acknowledge the stringent regulations governing these transactions. Within SMSF framework, these borrowing arrangements are formally termed "limited recourse borrowing arrangements" (LRBAs). Under the purview of the superannuation law, LRBAs are subject to conditions that necessitate the lender's recourse to be confined to the specific property being acquired. It is worth noting that the property in question must meet the criteria of being classified as a "single acquirable asset" and be held within a distinct trust structure known as a "bare trust" to ensure lender's limited recourse and protection of other assets of the SMSF. 

The evolving landscape of regulatory oversight has witnessed a notable transition, with several lenders, including major banks, opting to exit the SMSF lending sphere. Despite this, the SMSF lending sector remains dynamic, boasting a diverse array of both traditional banks and non-bank lenders that continue to provide viable loan terms. We maintain an extensive network of affiliations with these lenders and are continuously abreast of the latest developments within this sector. This privileged insight positions us to proactively identify and present viable funding solutions.