Business funding for daycares and child care centres
Daycares operate under strict ratios and licensing rules, and a meaningful share of revenue often comes from government subsidy programs that pay on their own schedule, not the parent's. Funding here tends to go toward build-outs that meet code, and toward smoothing out subsidy payment timing.
- One application, several lenders
- No credit pull to see your options
- No fee to you, ever
Common funding needs
- Renovating or expanding a space to meet licensing and ratio requirements
- Bridging the gap between enrolling a subsidized child and the subsidy payment arriving
- Buying furniture, playground equipment and safety fixtures
- Opening a second location once the first is licensed and stable
What usually fits
Products that usually fit
- Term loan for a licensed build-out or a second location.
- Line of credit for the timing gap between enrollment and subsidy payments.
- Equipment financing for furniture and playground equipment.
- Government-backed loans for a build-out, if you can wait for approval.
Compare term loans, lines of credit, cash advances and equipment financing side by side →
Illustrative example
A worked example
A licensed centre finances $60,000 in leasehold improvements to meet a ratio expansion over 4 years at an illustrative 9–20% a year. Payments come to about $1,493–$1,826 per month, or $71,669–$87,639 in total.
Centres usually compare that payment with the added enrollment the expanded ratio allows before committing.
Illustrative example only, not an offer or a quote. Rates, fees and terms are set by each lender and depend on your business. Fees are not included unless stated.
Underwriting
What lenders look at
- Current licence status and any conditions on it
- Enrollment numbers and the mix of private-pay versus subsidized families
- How subsidy payments are timed in your province or state
- Lease terms and any planned renovation permits
- Owner credit and time operating
Honestly
Who this is not for
- A centre that is not yet licensed: most lenders want the licence in hand or very close
- Borrowing to cover ongoing losses instead of a defined build-out or timing gap
- Anyone whose ratios or licensing status are currently under review, until that is resolved
If borrowing does not make sense, we will say so.
Are you a match?
Lender network minimums
Close but not quite there? Apply anyway and we will tell you honestly what is possible.
*Best available terms from lenders in our network. Every lender sets its own criteria; approval, amount and funding time are decided by the lender and not guaranteed.
| Time in business | 1 year+ |
|---|---|
| Monthly bank deposits | $20,000+ |
| Credit score | 500+ |
| Bank account | Business |
| Fee to you | $0 |
| Credit pull to start | None |
FAQ
Daycare & child care funding questions
Can an unlicensed daycare get funding for a build-out?
It is harder. Most lenders want to see the licence issued or the application well along before committing. Tell us where you are in the process and we will say honestly what is realistic.
Do lenders understand subsidy payment timing?
Some do, especially lenders used to working with regulated child care. Bring a few months of deposits showing the subsidy pattern.
Can I finance playground or classroom equipment?
Yes, through equipment financing, often with the equipment itself securing the loan.
Will a licensing inspection affect my funding?
Lenders generally want to see your licence is in good standing. An open inspection issue is worth resolving, or at least disclosing, before you apply.
Guides
Guides for daycare & child care
Related
Similar businesses
Cleaning & janitorial · Staffing agencies · IT & managed service providers · Marketing & creative agencies · Printing & commercial print · Laundromats & dry cleaners
Where we work: all US states · all Canadian provinces
See your options
Two minutes, no credit pull, no fee. We come back with real options from lenders that fit.