Securing Finance for a Childcare Centre


Rubiix Accountants are Childcare Hub’s accounting partner.

The team at Rubiix has broad experience working with childcare centres and has developed an accounting service package exclusively for ECE providers. With recent developments, especially around the lowering of the Official Cash Rate (OCR), we thought it was a good time to have a chat with Mark Salmon, managing director at Rubiix about securing finance for an ECE.


ECE Sector continues to Grow

As we know, the ECE sector is growing. This is largely due to an increasing number of dual income families, where both parents are working. The big banks, BNZ, ANZ and Kiwibank in particular, are very active in the ECE sector and competition for providing finance is healthy.

“While finance tightened up and activity slowed down over the last three to four years, things have come back and Childcare Centres are a hot sector valuation-wise,” says Mark. “Finance is readily available for the purchase and development of centres. Plus, the Reserve Bank recently lowered the Official Cash Rate to just 1.5 per cent, the lowest it has ever been.”

Mortgage Rates at Record Lows

Following the lowering of the OCR, banks quickly lowered mortgage rates, which means it’s a very good time to borrow money. “It’s a very good time to have a conversation with your bank. If you’re seeking finance, they will want to do their due diligence. In your proposal you need to make sure you have good quality financial data and sound projections of business performance,” adds Mark. “You need to show the bank that you can afford to borrow and can pay back the money. From our experience, the better your proposal and your preparation, the better the response from the bank. Also, those who were worried about a Capital Gains Tax can breathe easy, as the Government has abandoned its plans for a CGT.”


Where to next?

Whether you’re looking to purchase an existing childcare business, establish a new purpose-built centre or want to expand your existing operations, Mark and the team at Rubiix can help you with sound financial advice. To find out more, visit, call Rubiix on 0800 323 482 or email Mark direct at