Case
Studies

16. Childcare group refinance

Borrower is the owner operator of a chain of highly successful metropolitan Childcare Centres which became heavily affected by the Covid Pandemic.

Illness reduced staff capacity across the board, children were kept at home and trading income was reduced by as much as 50%. Nonetheless, Borrower survived the pandemic and with the assistance of loyal staff were able to stay afloat. Having survived financially the Borrower sought to recapitalise their business and repay the staff for their financial and supportive free overtime.

Unfortunately, banks were not willing to assist, therefore, Borrower applied to Eastwood Securities with an application and request to refinance their regional property assets.

Taking first mortgage security over these assets, Eastwood Securities refinanced all their facilities and provided the funds to satisfy the Borrower’s requirements. At an LVR of 60%, the loan of $1.3mil was serviced over the first six months by capitalised interest and thereafter with monthly interest payments.

Eastwood Securities Mortgage Fund specialises in bridging finance.

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