Finance question
Can I finance a childcare centre fit-out?
Yes. A childcare centre fit-out can usually be financed up to $500,000 in one facility, covering the kitchen, joinery, furniture, learning resources and play equipment, and larger fit-outs can be split with a property-backed facility alongside. The cost guide puts an operator fit-out at $500,000 to $2 million, so most centres fund it in more than one layer, subject to lender assessment.
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The short answer
Who pays for what decides how you fund it
In childcare the fit-out splits in two. Under a typical agreement for lease, the landlord delivers the building and fixed fit-out, and the operator supplies loose furniture, resources and often the play equipment. So the first question is which side of that line your bill sits on. A traditional purpose-built centre costs about $30,000 to $35,000 per licensed place to build, or $3,500 to $5,500 per square metre, before land, playground and soft costs, and that is the developer's cheque (childcare development cost guide). If you are the operator leasing a finished shell, your funding need is the fit-out on top.
The childcare development cost guide puts an operator fit-out at $500,000 to $2 million, sitting alongside the developer's budget rather than inside it. Most childcare playground projects run $150,000 to $400,000 including design, compliant softfall, shade and certification. Kitchens, joinery, cots, lockers and toilets add up fast too: on one 130-place Victorian project the fixtures and fittings line alone was $643,440. Equipment and fit-out finance runs up to $500,000 in one facility, so a fit-out at the top of that range is usually split, with part on equipment finance and the balance on a property-backed facility if you own property.
Lenders look at the operator as much as the equipment. A signed lease or agreement for lease, an operator with childcare experience and the service approval timing all matter, because places cannot take children until they are licensed. The guide allows 1 to 3 months after the build for the service approval that licenses the places (same guide), so keep working capital aside for that gap. Ventas is a broker across 40+ lenders, not a single bank, and there is no upfront fee to you; the lender pays us on settlement.
Do you qualify?
What a lender looks at on a childcare fit-out.
Licensed operator
Provider approval or a service approval in train, plus childcare experience.
A lease or agreement for lease
Signed, with the fit-out scope split between landlord and operator.
An itemised fit-out
Quotes for kitchen, joinery, furniture, resources and play equipment.
Working capital
Cash to carry wages and set-up until the places fill.
Why childcare fit-outs finance well
A clear scope
Itemised quotes for kitchen, joinery and play areas are easy for a lender to assess.
A lease behind it
A signed lease shows the centre has a site and a start date.
Split the funding
Equipment on equipment finance, the larger balance on property security.
A worked example
An operator leases a finished 100-place shell and needs $850,000 for kitchen, joinery, furniture, learning resources and play equipment, inside the $500,000 to $2 million range for an operator fit-out. A lender funds $500,000 as equipment and fit-out finance. The remaining $350,000 comes from a loan secured on the owner's investment property, with $60,000 of savings held back as working capital. Illustrative only.
Common questions
Frequently asked questions
How much does a childcare centre fit-out cost?
The childcare cost guide puts an operator fit-out at $500,000 to $2 million and most playground projects at $150,000 to $400,000. Who pays for which part depends on your agreement for lease, so confirm the split before you price the finance.
Do I need to own the building?
No. Operators who lease can finance a fit-out, because the equipment and fit-out secure the loan rather than the property. Owning other property can help on larger amounts.
What if my fit-out is over $500,000?
Equipment and fit-out finance runs up to $500,000, so larger fit-outs are usually split. The balance can go on a property-backed facility secured on residential or commercial property, which runs up to $5 to 6 million.
Can the playground be included?
Often yes. Play equipment, softfall and shade can sit in the same facility, subject to lender assessment. Check who owns fixed landscaping under your lease, because anything the landlord owns may be treated differently.