Business loans for childcare
Care is delivered this week. The subsidy arrives after you report it.
Finance for Australian childcare centres, OSHC and family day care: subsidy timing gaps, new rooms, fit-out, vehicles and acquisitions.
Apply now
2 minutes · Soft check only · Free
Best fit: $10K+ monthly revenue · 12+ months trading · Active ABN · Loans from $10K
After you submit:a broker calls within 2 hours — often from a mobile or private number, so please pick up. They’ll send a 30-second privacy form to e-sign, then ask for your last 6 months of business bank statements. Have those ready and you could have quotes today.
Overview
Why childcare businesses choose Avoir
Running a childcare centre in Australia means operating within one of the most regulated, capital-intensive small business environments in the country. Ratio requirements are non-negotiable: you cannot reduce staffing to manage a cash flow shortfall without breaching your approved provider obligations. The Child Care Subsidy is paid only after your weekly session reports are processed, so wages go out before the subsidy for that care comes in. Room upgrades, outdoor equipment, and educational resources need to meet National Quality Standard requirements, not just your budget. And opening a new room or service requires approval, fit-out, and a ramp-up period before enrolments stabilise. Avoir connects childcare and early education businesses to lenders who understand the sector's specific financial structure.
Most lenders have never assessed a childcare centre. They look at deposits, find an average, and make a decision that ignores the structural complexity of government subsidy timing, regulated staffing costs, and the capital requirements of a sector where corners genuinely cannot be cut. Lenders in Avoir's network understand the Child Care Subsidy payment cycle, the staffing cost structure of ratio-based service delivery, and the fit-out and equipment investment required to operate a compliant early education service. Whether you're managing a short-term cash flow gap between CCS payments, funding a new room opening, or investing in outdoor equipment and educational resources, a specialist will match you to the right option.
Key features
CCS timing cash flow
Bridge the gap between childcare costs and Child Care Subsidy payments. Keep your centre fully staffed and operational.
Equipment and fit-out
Fund playground equipment, educational technology, renovation, and compliance upgrades without depleting operating funds.
Expansion and new rooms
Open new rooms, expand capacity, or add new service offerings without waiting for a traditional bank approval.
All childcare types
Long day care, family day care, in-home care, vacation care, OSHC, and early learning centres all eligible.
Cash flow
How the Child Care Subsidy actually reaches your account
Services Australia pays the Child Care Subsidy to the approved provider, not the family. You then pass it on as a fee reduction within 14 days, and the family pays the gap fee.
Payments are driven by session reports. Reports are weekly and due within 14 days after the week the care was delivered. A report lodged before 9pm on a Sunday is paid at 9am the following Monday.
Put those rules together and the subsidy for a week of care can land one to three weeks after you delivered it, depending on how quickly you report. That is our reading of the rules, not an official figure. Your educators are paid in real time, so the gap is funded from your own cash.
| Item | Rule | What it means for cash |
|---|---|---|
| Session reports | Weekly, due within 14 days of the week ending | Late reporting delays your own subsidy income |
| Payment run | Lodged by 9pm Sunday, paid 9am Monday | Report every week to keep the lag short |
| Corrections | Changes allowed up to 28 days after the week starts | Overpayments are clawed back from future payments |
| Gap fees | Must be collected electronically where reasonable | Arrears on gap fees are your working capital risk |
Wages and fees
The Worker Retention Payment and the fee cap
The Worker Retention Payment funds educator wage rises of 10% from 2 December 2024 and 15% from 1 December 2025, paid through the CCS system with at least an extra 20% for on-costs. It has been extended to 30 June 2028.
The catch is a fee growth cap. Participating services can lift fees by no more than 5.8% for 8 August 2026 to 7 August 2027. If you are buying a centre, you inherit its fee baseline; a new or relocated service sets its own.
That matters for any loan sized on future revenue. Model fee growth inside the cap, and if you are buying, check the target’s fee history before you agree a price.
Expansion
What a new room or a new centre has to clear first
Capacity is set by your service approval, granted by the state or territory regulatory authority (not ACECQA). A new service approval is decided within 90 days of a complete application; an amendment, such as more approved places, within 60 days. New services are usually rated against the National Quality Standard 9 to 18 months after opening.
Every extra place needs space and staff. Plan finance to cover the approval wait and the ramp-up, not just the fit-out invoice.
| Age group | Ratio | Variations |
|---|---|---|
| Birth to 24 months | 1:4 | None |
| 24 to 36 months | 1:5 | VIC 1:4 |
| 36 months to preschool age | 1:11 | NSW, TAS, WA 1:10 |
| Over preschool age | 1:15 | ACT 1:11; WA uses its own scale |
Space minimums: 3.25 sq m of unencumbered indoor space and 7 sq m of outdoor space per child (Education and Care Services National Regulations 107 and 108).
Which finance fits
Match the facility to the job
| Need | Usual structure | Notes |
|---|---|---|
| Subsidy timing gaps, payroll, gap-fee arrears | Unsecured loan or line of credit | Short term, sized to a few weeks of wages |
| Playground, furniture, IT, kitchen | Equipment finance | The asset is the security; assets under $20,000 may qualify for the instant asset write-off |
| Centre bus or vehicle | Chattel mortgage | You own the vehicle from settlement |
| New room fit-out | Unsecured or equipment finance | Often a mix: fit-out unsecured, fixed equipment financed |
| Buying a centre | Secured commercial loan | Specialist lenders publish limits around 60% to 70% of value |
| Building a centre | Development finance | Banks typically want a signed operator lease first |
Avoir connects businesses with lenders for loans from $10,000. Acquisition and construction finance are assessed case by case.
Assessment
What lenders look at for a childcare business
Lender and broker pages that publish their criteria point to the same short list: earnings and management experience, your service approval and number of approved places, your NQS rating, occupancy by day and by room, and the lease (term remaining, options, rent reviews and permitted use).
Specialist lenders set a higher bar for acquisitions and construction. One non-bank childcare lender publishes a minimum of five years in the sector, typically across three or more centres, with loan-to-value ratios up to 70% for established centres.
Compliance history is under more scrutiny. Regulators took 1,540 compliance actions in the June 2026 quarter, up from 735 a year earlier. A clean record and a Meeting NQS rating or better make an application easier to place.
For context: there were 18,197 approved education and care services at 1 July 2026, and 78% of the 7,200 providers run a single service. Most applicants are owner-operators, and lenders know it.
Sources · checked 3 October 2026
- Department of Education: Manage payments and fees (CCS payments, session reports, gap fees)
- Department of Education: Worker Retention Payment
- Department of Education: Worker Retention Payment eligibility and conditions (fee growth cap)
- Department of Education: 3 Day Guarantee
- ACECQA: Educator to child ratios
- ACECQA: Quality Area 3, physical environment (space requirements)
- ACECQA: Application for service approval
- ACECQA: NQF Snapshot Q2 2026
- Remara: Childcare finance (lender-published criteria)
- 3LANE: How do banks assess a childcare centre loan (broker-published)
- Settled Funding: Childcare construction finance (broker-published)
General information only, not financial, legal or tax advice. Lender criteria change; anything marked lender- or broker-published is their statement, not Avoir's.
Eligibility
Am I eligible to apply?
Childcare centres, long day care services, family day care operators, and early education businesses with 12+ months of operating history are typically eligible to apply. CCS-based revenue structures are specifically understood by lenders in our network. A specialist will review your profile.
Meeting these criteria makes a business eligible to apply; it does not mean an application will be approved. *Subject to lender credit criteria.
Process
How it works
Apply in 2 minutes
Complete our short online form with basic details about your business and what you need. Only a soft credit check, and no documents required at this stage.
We match your profile
Your enquiry is assessed and matched to the most suitable lending partners in our network based on your business profile, loan amount, and purpose.
Receive your offer
A specialist calls within 2 hours — often from a mobile or private number, so please answer. You e-sign a quick privacy form, share your last 6 months of bank statements, and they walk you through tailored options.
Funds in your account
Once you accept an offer and provide the lender's required documentation, funds are typically transferred within 24 hours.
FAQ
Common questions
Everything you need to know about getting a business loan. Can't find the answer you're looking for? Apply and a specialist will answer your questions directly.
Apply now →Can a childcare business get an unsecured loan?
Yes. Childcare businesses with consistent enrolment revenue and 12+ months of trading are eligible for unsecured business loans.
Can I use a loan to fund a childcare fit-out?
Yes. Fit-out and equipment finance is a common use for childcare business loans in our network.
Does CCS revenue count towards the income assessment?
Yes. CCS payments received by the centre are included in revenue assessment. Lenders understand government subsidy timing.
Can a sole operator family day care provider apply?
Yes. Sole traders operating family day care businesses are eligible to apply with an active ABN and 12+ months trading.
How much can a childcare business borrow?
Between $10,000 and $500,000 depending on annual revenue. Childcare businesses with consistent enrolment can typically access amounts that reflect their fee income.
Are OSHC businesses eligible?
Yes. Outside school hours care providers are fully eligible to apply through our lending network.
Ready to apply?
CCS timing gaps shouldn't compromise the quality of your service.
Two minutes to apply. Soft credit check only. A specialist will be in touch within two hours.
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