Obtain Funding For Your Daycare Business

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How Daycare Business Loans Can Help You

When you are running a daycare business, it is important that you have access to capital when you need it for all the extra costs that may arise. From hiring new staff to making sure your facility is safe for the children you care for, there are many different costs which can add up for daycare business owners. Whether you are buying, building or simply looking to grow your daycare business, we will design a loan package that supports your business goals.

Qualifications for a Daycare Loan

1. A business plan that outlines the goals and objectives of the daycare center.

2. Proof of ownership of the daycare center or a lease agreement for the premises.

3. Financial statements that show the current financial position of the daycare center, including income and expenses, assets and liabilities, and cash flow projections.

4. Personal financial statements for all owners or guarantors of the loan.

5. Collateral to secure the loan, such as real estate or other assets owned by the business or its owners.

6. A credit history that demonstrates a good repayment record on past loans and other financial obligations.

7. Evidence of licensing and certification from local government agencies to operate a daycare center in your area.

Best Working Capital Loan for Daycares

Term Loan

Term Loan

Short-term loans with flexible repayment terms and competitive interest rates are ideal. Additionally, some banks may offer financing tailored to the needs of daycares.

Best SBA Loan Alternative for Daycares

Business Line of Credit

Business Line of Credit

This provides flexible access to capital, allowing you to borrow only what you need, when you need it. It's a great option for daycares because it can be used for a variety of purposes, such as purchasing new equipment, hiring additional staff, or expanding the facility. Plus, the repayment terms are typically more flexible than those associated with an SBA loan.

Best Daycare Loan for Supplemental Purchases

Small Business Administration (SBA) microloan

SBA Microloan

The SBA microloan program offers up to $50,000 in financing with terms up to six years. The interest rates are typically lower than other types of financing and the application process is relatively easy. Additionally, the SBA may provide technical assistance to help you develop your business plan and understand the loan requirements.

Best Daycare Loan for Everyday Expenses

Business Line of Credit

Business Line of Credit

A business line of credit provides access to funds when you need them, without the need to reapply each time. This type of loan offers flexible repayment terms and can be used to cover daycare expenses such as payroll, supplies, and other operating costs.

Best Loan for Daycares to Finance Furniture and Supplies

Small Business Administration (SBA) loan

SBA Loan

SBA loans are government-backed loans that offer low interest rates and long repayment terms. They can be used to purchase equipment, furniture, and supplies, as well as finance business expansion projects. Additionally, the SBA offers special programs specifically designed for childcare centers, such as the Child Care Center Loan Program.

Best Daycare Loan for Cash Flow

SBA 7(a) Loan

SBA 7(a) Loan

These loans are backed by the Small Business Administration, so they offer more favorable terms than traditional bank loans. They also have longer repayment terms, which can help with cash flow management. Additionally, they often come with lower interest rates and fees than other types of financing.

Ready to Apply?

Filthy Rich Idea makes it easy to get a business loan for your daycare business. Apply online and we will give you a decision within minutes. One of our Loan Specialists will tailor a loan package for your business needs. As soon as we receive the application and documents, your dedicated Funding Advisor will be in touch to discuss the application and next steps. Approval typically takes 24-48 hours, and funds can be deposited into your account the following business day. It’s that simple!

Business Funding - Knowledge Is Wealth

FAQs

What information and documents do I need to apply for funding?

Our lending partners will need 3 months of bank statements, the government IDs of all applicants, 1 or 2 years of business tax documents, business P&L and balance sheets, business licenses and formation documents, and a business EIN.

What is APR?

APR stands for Annual Percentage Rate and is a measure of the cost of borrowing money. It is the interest rate expressed as a yearly rate, including fees and costs associated with the loan. It's a good way to gauge the overall cost of your loan and your planned repayment schedule.

How long does it take to get the money once my business is approved?

Once approved, transfer times vary depending on the lender, but it is possible to receive your capital in as little as 72 hours after approval. Lines of credit, on the other hand, may be used immediately upon receiving approval in some cases.

How do I pay back the funding amount?

Our lenders offer secure digital payment portals so that you can make your repayments on time and without penalty. You may be able to change due dates and other important information.

How To Best Prepare for a Business Loan

Determine the amount of money you will request—and do not request an excessive amount.

Although you may have the option of a small business loan, it is important to only request the amount of money that you need and can afford to pay back. This will demonstrate to your lender that you are financially responsible and increase your chances of approval.

Understand the limitations and costs of your loan.

Before committing to a loan, be sure to consider the speed, flexibility, and cost. Some loans are more or less flexible while others charge for speed. Understand the APR and other associated fees and costs so you can make an informed decision.

Avoid taking out multiple loans.

If you already have a loan, it is not advisable to take out another one. This is calledstacking loans and is generally not allowed, except in certain cases (e.g. having a business line of credit with a term loan). If you stack loans without the permission of your original lender, you could be in breach of your loan agreement and default on your first loan. Before taking on another loan, check with your lender to make sure it is allowed.

Ready to Apply?