How money moves in this industry
Lease, fit-out, staffing and training costs arrive before a new centre reaches planned occupancy. Cash reserves need to account for a slower enrolment ramp-up.
A practical example
An operator opens a second early learning centre and needs to fund its fit-out and staff before enrolments settle.
This illustrates a funding need; it is not a lender eligibility claim or a recommendation to borrow.
Common reasons to explore finance
- Centre fit-outs
- Play and learning equipment
- Premises purchase
- Opening another centre
- Working capital
Equipment and assets that may be financed
Asset finance depends on the lender's product, the asset, its condition and the proposed term. Examples in this industry include:
- Centre furniture
- Play equipment
- Kitchen and learning systems
Questions to prepare for a lender discussion
These are useful preparation questions, not a statement that any particular lender accepts this industry.
- What approvals and staffing arrangements are in place?
- How do enrolments compare with capacity?
- What is the lease term and fit-out budget?
Insurance and business continuity
Finance is one part of a business decision. This industry may also need to consider public liability, property, business interruption cover, depending on its activities, contracts and legal obligations. Our business insurance guide explains the concepts and links to official Australian sources.