At Madd Commercial, we understand that childcare operators have unique needs when it comes to financing their facilities. Commercial loans can be a vital resource for funding property acquisition, expansion, or renovation. Here’s what you need to know and how we can assist.
There are several types of commercial loans that childcare operators may consider:
These loans are used to finance the purchase of a property for a childcare centre.
If you’re looking to build a new facility, these short-term loans can finance the cost of construction.
These loans can be used to finance renovations and improvements to existing facilities.
These loans provide funds for day-to-day operational expenses.
Understanding Loan-to-Value Ratio (LVR) and Debt-Service Coverage Ratio (DSCR)
LVR is a measure of the loan amount compared to the value of the property. A lower LVR means less risk for the lender, which could result in better loan terms.
DSCR is a measure of a business’s cash flow compared to its debt obligations. A higher DSCR indicates that the business generates sufficient income to cover its debts, which is a positive sign for lenders.
Lenders will want to see a solid business plan that outlines your childcare centre’s operations, projected costs, expected timeline, and potential profitability. This helps the lender assess the viability of your project and your ability to repay the loan.
Your personal and business credit histories can impact your ability to secure a commercial loan. Lenders will look at your credit scores, repayment history, and existing debts when assessing your loan application.
Navigating the world of commercial lending can be complex. At Madd Commercial, we understand the needs of childcare operators and can guide you through the process. We can help you understand your options, prepare a compelling loan application, and negotiate favourable loan terms.
We can also provide advice on managing your loan, from understanding repayment schedules to making the most of any loan features, such as redraw facilities or the ability to make extra repayments.
At Madd Commercial, we’re not just a commercial lender – we’re your partner in achieving your business goals. Contact us today to learn more about our commercial lending services for childcare operators.
From securing your first business loan to managing mergers and acquisitions, our free service takes the stress out of navigating commercial finance. We offer our services Australia wide, so why not reach out to us today. Whether you’re looking to invest in commercial property, need cash flow finance, or seeking equipment finance, we’re here to help. We’d love to hear from you.
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