Executive Summary
Expansion in care services often requires spending before utilisation reaches target levels. Non-bank facilities can help fund this ramp-up when the business case is clear.
Expansion Funding
Funding a New SIL Home, Service Line or Branch: What Lenders Want to See
Common Expansion Cost Buckets
- Fit-out and mobilisation costs
- Initial workforce recruitment and training
- Working capital buffer while occupancy or client load builds
- Technology, vehicles or clinical/service equipment
Use Case: Milestone-Based Facility (12-18 Months)
A 12-18 month structure can align with expansion milestones such as operational launch, target occupancy/client volumes, and stabilised contribution margins. This is most effective when providers define measurable checkpoints before funding.
- Term fit: 12-18 months
- Use-of-funds governance: staged drawdowns linked to milestones
- Exit logic: refinance, retained earnings, or normalised cash generation
Credit Pack Essentials
- Base case and downside case forecasts
- Workforce plan and roster assumptions
- Service demand evidence and referral pipeline
- Risk controls, compliance context and reporting cadence
Lenders do not just assess the plan. They assess whether management can track and adapt the plan when conditions change.