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Finexia cements their position as a key source of finance for ambitious ECEC owners
Jason Roberts
Aug 20, 2024
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Finexia, the ASX listed financial services company, has rapidly become the partner of choice for ambitious early childhood education and care (ECEC) owners looking to expand their business footprint via greenfield or brownfield acquisitions.
Via a range of carefully crafted loan packages with terms and conditions anchored in the reality of opening and operating early learning services Finexia has more than doubled its client base in the last six months as capital hungry providers seek out lending partners in an increasingly tight credit market.“The growth in interest in our lending products in recent months has been nothing short of remarkable,” Pat Bell, Finexia Managing Director and CEO said.
“We have invested a great deal of time in really understanding the core financing needs of growing ECEC businesses and have been incredibly fortunate that our flexibility, experience, culture and offer are resonating so well across the community.”
“As a business we have substantial capacity to deepen and broaden our client base and we are very excited about the prospect of supporting more and more providers to achieve their goals going forward.”
Specially tailored ECEC funding solutions at the heart of Finexia’s success
With an overarching objective of supporting ECEC business owners to scale their organisations, Finexia have created a suite of products that can help finance freehold or leasehold acquisitions, greenfield trade up-periods and centre expansion or refurbishment projects.
ECEC specific terms and conditions including loan to value ratios (LVRs) based on target occupancy valuations, interest capitalised periods during trade up, post settlement Child Care Subsidy (CCS) bridging finance, working capital loans as well as multi site facilities are some of the options available.
“Our ECEC specific loan terms and conditions are an important driver for business owners that approach us to help with their funding needs,” Mr Bell said.
"Our ability to speak the language of our clients and customise loans to fit their specific needs truly sets us apart from the competition. With direct industry expertise within our lending teams, we offer a unique and specialised approach."
That being said, Finexia has been very effective at working alongside any existing funding partners a borrower may have such as a traditional high street bank or other lending institution as it positions to meet any funding gaps that may emerge over the course time.
Testimonials signal that Finexia’s support really does make a crucial difference
As the Finexia partner base continues to expand, so do the number of testimonials and case studies highlighting the positive impact the business is having across the market.
A business owner based in Western Australia was finding it difficult to secure funding to acquire a freehold ECEC property in a family friendly suburb with high demand for early learning services at an LVR that worked for them.
Finexia swiftly responded to the inquiry by thoroughly evaluating the business case through its due diligence and risk assessment processes. This led to the funding of a $2.3 million senior loan facility, structured to allow the client to maintain their existing banking relationship while significantly enhancing the owner’s return on investment compared to relying solely on cheaper bank financing options. Another example involved a rapidly expanding ECEC group that required substantial capital to grow its network from three to ten centres, utilising a mix of new greenfield sites and upgrades to existing centres.
For operators in growth mode, Finexia’s solution is particularly effective, offering higher gearing levels and a recognition of the future value of centres. This approach typically enables operators to expand at more than twice the speed of traditional financing methods.
"With Finexia’s financial expertise, we were able to rapidly expand and enhance our ECEC services. Their support was crucial in our journey to becoming a trusted name in our community and we are incredibly grateful for their help," an owner of a medium size provider seeking growth capital said.
Finexia’s commitment to funding ECEC businesses is for the long term
With well over $100 million of lending already injected into the ECEC community via tailored loans Finexia will continue to be a trusted and reliable funding partner for ECEC services.
“As an ASX listed financial services company we take our responsibilities as lenders of choice to the ECEC sector incredibly seriously,” Mr Bell said.
“Our extensive portfolio, together with the transparency of a public company, sector-specific expertise, best-in-class due diligence, and risk management processes, coupled with a 'can-do' culture, positions us at the forefront of a sector that has quickly become essential to Australian society.” "Looking ahead, it's hard not to feel excited about the future. We welcome any business owners seeking support to achieve their growth strategy."
To contact Finexia or learn more about how they could support the growth of your business please see here.
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