Nurture Your Child Care Business with Daycare Business Loans

Learn to Make Daycare Financing Work For You

As a daycare owner, you know the rewards of working with children. There’s the laughter, silly moments, and joy that come with caring for kids. But the daycare industry has its challenges, especially when it comes to financing. That's where daycare loans can help. What happens when a playhouse breaks and is no longer safe for the children to enjoy? Does your business have sufficient working capital on hand to spring for a replacement? Maybe you missed parts of your licensure requirements. How will you cover the hefty fines? Child daycare business loans can help with these immediate payments.

Industry Outlook for Daycare Businesses

Given the state of the industry, it’s no wonder business owners are seeking child daycare business loans. According to the U.S. Census, 61 percent of children under the age of five spend time in nonparental care. Research shows that children gain lessons in childcare settings that they don’t learn at home. Parents are becoming increasingly aware of the value of having their kids socialize with other children at an early age.

The decrease of stay-at-home mothers serves as one major reason for the spike in daycare services. According to a study by the Pew Research Center, 18 percent of parents stayed at home with their children and do not work outside the home. This number has decreased significantly over the decades. With fewer parents staying home, more money is being spent on daycare services.

The industry’s expected growth and the importance of childcare are two main reasons why it’s profitable to own a childcare business today. If you want to grow your daycare business, you may benefit from child daycare business loans.

Seeking out Child Daycare Business Loans to Cover Expenses

You might have the passion to renovate or expand your daycare, but you’ll also need the cash reserves. Consider obtaining child daycare business loans to get capital for your business. It can be challenging to qualify for child daycare business loans through the SBA and traditional banks. If you have poor credit history, a recent bankruptcy, or inconsistent cash flow, banks may reject your loan request. Even if you are approved, it could be months before the cash is deposited into your account.

Business owners often prefer to use alternative lenders. Alternative lenders have less stringent decisions factors and lending credit restrictions. They offer fast approvals, flexible loan terms, and 24-hour funding.

How You Can Use Your Child Daycare Business Loans

Alternative lenders like QuickBridge, offer more than speedy approvals. Their customized lending experience helps you put your cash to work in a way that fits your unique business needs. Here are some ways you can use your child daycare business loans:

Purchase Child Care Supplies

According to Chron, daycare supplies and equipment cost an average of $60 per child. You want to purchase safe, fun toys for the daycare children to play with. You’ll also need to buy blankets and mats for nap time. Additionally, you may have recurring expenses, such as cleaning supplies, diapers, and snacks. The age group of your daycare determines exactly what supplies you will need. It might be smart to allocate cash towards unforeseen costs or emergencies. You will need plenty of supplies to keep your daycare running smoothly.

Buying, Building or Renovating a Daycare Facility

When caring for children, it’s important to provide a safe, secure atmosphere with plenty of recreational space. Supplementary working capital from a child daycare business loan can be used to pay rent, renovate your daycare center, or for business expansion to accommodate more clients. Child-proofing is also crucial to keep children safe on the property.

Daycare Licensing Fees

The requirements you’ll need to meet to run your daycare depend on your location. Many areas instruct daycare owners to pay various licensing fees. If you aren’t sure about the costs of opening or maintaining a daycare in your state, take look at the National Database of Child Care Licensing Regulations. You also might need to pay insurance and accreditation costs.

Child Care Facility Staffing

You don’t want to take on more work than you can handle. Hiring staff can lessen your burden if you are responsible for the care of many children. Plus, more supervision may be required to meet the state-mandated caretaker-to-child ratio. You can use the funds from child daycare business loans to hire and train employees.