The types and options for child care loans are dependent upon the specific loan request being made. Financing has traditionally been fairly broad and can include conventional and SBA loans, assets-based loans and other non-traditional funding options.
There are various loan purposes to consider as a borrower depending on whether the daycare center owner is looking to:
When it comes to financing daycare centers or franchises, operators will face several decisions in choosing which loan product and lender is right for them. That’s where small business owners turn to us to help make the process easier and efficient.
Whether you’re opening a home-based child care service, taking over an existing business or are interested in a well-known franchise, you need to make the right choice when it comes to financing. Because child care is subject to governmental regulatory oversight, it’s critical to also understand that compliance with all state requirements is a key part of being a borrower in good standing.
At BoeFly, we can help match you with child care financing that’s right for your situation. Here’s a handy guide to the kinds of loans you can apply for:
SBA loan
Asset-based lines of credit
Unsecured business line of credit
Merchant cash advance
Seller carry financing
$55B 2019 industry revenue1
2.4 % average industry growth 2015-20202
23.4% children under 5 years old in some form of child care environment3
7.8% of income families spent on child care in 20194
When the Vazirani family in West Cary, North Carolina, wanted to apply for a start-up business loan to open a daycare center.
“With our finance backgrounds, we knew that the process of going from bank to bank was tedious and antiquated,” said Deepak Vazirani. “Fortunately, Kiddie Academy® recommended we try BoeFly, saving us time and allowing us to focus on the other aspects of starting a business.”
The Vaziranis received multiple offers from lenders all over the country but ultimately decided to work with Dana Campbell, Vice President, Business Development Officer at First Chatham, a regional bank in Georgia. Even though First Chatham was more than 400 miles away, BoeFly’s lending platform made it simple to connect the Vaziranis with the best rates and the best bank for them.
We make it easy and efficient to apply for a child care loan with one of our array of proven lenders. Individual banks can appear like a worthy path, but we’re experts at helping connect child care owners with the financing options right for their situation.
1IBISWorld 2019
2IBISWorld’s 2019
3Center for American Progress, Americanprogress.org/issues/economy/news/2012/08/16/11978/fact-sheet-child-care/#:~:text=Almost%20one-quarter%20(23.4%20percent,centers%2C%20nurseries%2C%20and%20preschools.
4Center for American Progress, Americanprogress.org/issues/economy/news/2012/08/16/11978/fact-sheet-child-care/#:~:text=Almost%20one-quarter%20(23.4%20percent,centers%2C%20nurseries%2C%20and%20preschools.