Revolutionising ECEC Finance: Finexia’s Sharon Watkins on the Cutting Edge of Childcare Funding

“I first started working with childcare operators over a decade ago. I was fortunate to be at the forefront of driving lending appetite and product innovation at several of the major bank’s in national leadership roles over that time,  and I love nothing more than rolling up my sleeves and working closely with operators to understand their needs and pain points, and help bring their business growth aspirations to life.”

Sharon Watkins brings unmatched expertise to Finexia, the ASX-listed innovator in ECEC finance. As Finexia rapidly expands its footprint in the childcare sector, Sharon is leading the charge with bold, tailored solutions to meet the growing demands of operators nationwide.

 

How did your journey lead you to Finexia?

 

"After years in Commercial, Business, and Private Banking, I saw Finexia as the place to truly push boundaries in ECEC finance. Finexia isn’t just about providing loans; it’s about delivering growth capital that enables childcare operators to thrive. Joining a forward-thinking, expanding team like Finexia has been a natural evolution, letting me apply my knowledge to help operators scale in ways traditional banks simply can’t."

 

What specialised expertise do you bring to Finexia?

 

"I’ve focused on complex financing models like leveraged finance, project finance, and cash flow lending, tailored specifically for ECEC and Community sectors. Working with freehold, leasehold, and going-concern models, I help clients bridge the gap between steady cash flow and ambitious growth.”

 

“My background in social infrastructure projects, across colleges, private schools and childcare, means I can bring childcare operators the strategic insights they need to grow from mid-tier to major players." 

 

“And with an increasing number of operators opting to open 200+ place centres, I can draw on my experience working with private schools, given the growing similarities, and help my clients to see around corners.”

 

What trends are shaping the future of ECEC funding?

 

"With the number of families using centre based care increasing by 1.4% in the March ’24 quarter and 1.1% in the June 24 quarter, the ECEC sector is facing unprecedented growth, driven by rising demand for quality childcare and easing workforce shortages.” 

 

“Yet access to capital remains a significant barrier with Bank’s reluctant to support the rate of new centre trade-up required to meet the market. Finexia is stepping up, offering highly customised solutions—from acquisition to expansion funding—that enable operators to secure the capital they need without compromising cash flow."

 

Where do you see the biggest opportunities for innovation in ECEC finance?

 

"ECEC financing is ripe for innovation. We’re developing hybrid loan products that tie repayments to occupancy rates, making capital more accessible for operators. Additionally, Finexia is pioneering higher loan-to-value ratios (LVRs) based on projected valuations, which is a game-changer for this sector.” 

 

“We’re also focusing on flexible models that help operators manage seasonal cash flow shifts, making financing as adaptive as the childcare industry itself."

 

How has Finexia’s expansion transformed the ECEC lending landscape?

 

"Finexia’s rapid expansion into ECEC finance has created a new standard in the industry. We’re attracting mid-sized operators who want to open multiple locations,  and need a strategic financing partner to grow sustainably.”

 

“The shift in demand over the past year has been remarkable, with clients increasingly focused on securing working capital that provides both operational stability and room for strategic acquisitions."

 

What impact would a rate cut have on ECEC operators?

 

"Lower interest rates could unleash a wave of expansion as operators find financing costs more manageable, paving the way for new acquisitions and upgrades. Freehold acquisition will likely see improvement also with, already steady rates of return from 5%-8% and good capital growth, likely to improve once interest rates reduce.” 

 

“With Finexia’s unique funding options, a rate drop could act as a catalyst, enabling operators to capitalise on reduced costs to fuel their growth."

 

What are you most excited about in the months ahead?

 

"The next six months are all about new possibilities. Finexia is launching innovative, sector-specific financing products that I believe will reshape the childcare landscape. It’s incredibly rewarding to work with operators who are ready to grow, knowing that Finexia’s funding solutions are the driving force behind their success.”

 

“The energy and momentum in this industry are like nothing I’ve ever seen!"

 

If you are interested in connecting with Sharon and learning more about Finexia’s unique lending solutions for childcare businesses please contact email sharon@fnx.com.au or call 0487 959 500.