Giving the next generation the proper care they need.
There’s a sense of fulfillment that comes with teaching and taking care of children. Their curiosity and appreciation of the world around them make running a daycare center a rewarding career. But just like any other business, you’ll need a significant amount of working capital to keep your facility running smoothly. Paying for insurance, utilities, hiring and training, child-proofing your space, and daily operational costs are expenses that can quickly add up.
A daycare business loan gives you the working capital you need to pay for these expenses and move your business forward.
At 1West, we make sure that you have all the resources you need to ensure that your little clients have a safe space to play. We provide daycare loans to small business owners across the country.
Ways You Can Use Your Daycare Loan
Large businesses and SMEs alike all go through a dry spell at some point, and your daycare center is not an exception. There will be times when you’ll need a daycare loan to help cover the expenses incurred when running your business. Here are some of the ways you can use your daycare loan.
You can use your daycare business loan to ensure that your employees are paid in full and on time. Paying your staff on time consistently shows that you appreciate their contribution to your daycare center and want them to remain as an employee in your business. As a result, this decreases employee turnover and increases productivity and satisfaction.
Utilities and Rent
You can also use a daycare loan to pay for rent and utilities, such as water, electricity, and more. A daycare center equipped with bathrooms, a kitchen, and play areas can cost up to $0.60 to $2.50 per square foot. These costs can quickly add up and could impact your cash flow. A daycare loan can help you stay on top of your expenses so you can focus on growing your business.
You can increase your income by offering pick-up and drop-off services. Children with busy parents will definitely appreciate this service. However, buying vehicles out of pocket isn’t feasible for many small-time daycare centers. A daycare loan gives you the funds you need to purchase cars and offer additional services. You can also use the money to pay for regular vehicle maintenance to ensure that your vehicle runs smoothly.
Marketing and Advertising
To attract potential customers, you need to advertise and market your services. This is especially important if you just opened your facility or are trying to expand your customer base. Launching a marketing and advertising campaign can be expensive. Traditional and digital marketing campaigns like inbound marketing, video marketing, and content marketing cost considerable money. A daycare loan can help pay for advertising and marketing so you wouldn’t have to dip into your working capital.
Daycare loans can help you buy the supplies and furniture you need to provide excellent service to your customers. Here are some of the things you need to ensure that your daycare center has everything you need:
- Changing tables
- High chairs
- Books and bookcases
- Room dividers
- Activity tables
- Shoe racks
- Kitchen supplies and
- And more!
Insurance protects your business in the event of a lawsuit, natural disasters, theft, and more. However, the cost of getting different types of insurance policies is often more than you’d expect. Daycare business financing provides you with the working capital you need to protect your business.
Top Daycare Financing Options for You
The Small Business Administration (SBA) created SBA loans to provide small business owners access to bank-rate financing. The SBA guarantees up to 85% of your loan, incentivizing lenders to approve your loan. In other words, in case of a default, your lender will still receive 85% of the total loan amount. SBA loans are also the most popular financing options for small businesses because these loans have higher loan limits, lower interest rates, and longer repayment terms.
However, SBA loans take about a month to process, and lenders often approve borrowers with good financial standing and high credit scores. If you need cash quickly or have a low credit score, you might want to explore other options.
You can use equipment financing to purchase or lease furniture and fixtures, vehicles, and office equipment for your daycare center. Strong borrowers could even qualify for 100% financing, which means that the lender will shoulder the total amount of the equipment. The amount you’re going to get mainly depends on the industry you’re in and the equipment you’re looking to lease or purchase.
Business Term Loan
A business loan is best for borrowers who prefer a lump sum of funds and fixed payments. You can use the funds for almost any business purpose, including equipment purchases, debt refinancing, renovations and expansions, and more. Repayment terms are done in regular installments, either daily, weekly, or monthly, depending on your agreement with your lender.
Business Line of Credit
Business term loans are great options for funding large and expensive initiatives, like a construction
If you’re looking for a more flexible loan option, consider a business line of credit. It works just like your credit card – a lender will give you a credit limit to withdraw funds whenever you need to. You can use the money for just about anything – payroll, marketing, operational expenses – as long as it benefits your business.
Unlike traditional loans, you don’t have to repay your entire credit limit. You only need to pay back the amount you’ve withdrawn, plus interest. And once it’s repaid, your credit limit goes back up again.
Choose the Best Daycare Loan for Your Business
Unfortunately, there isn’t a one-size-fits-all when it comes to small business financing. Choosing the right type of daycare loan involves evaluating your business, assessing how much you need, and determining how you use the money.
Long-term loans and SBA loans are best for funding larger, more expensive projects that give you a higher ROI in the future. On the other hand, short-term loans are best for bridging cash flow gaps and paying for short-term funding.
It’s also important to know your options and understand the type of loans you can qualify for. Newer businesses will often have more limited options than companies that have been in business for at least two years. You’ll also have more options if you have a good credit rating.
Move Your Business Forward with 1West
Small business owners are all too familiar with the challenges of securing bank-rate financing to fund daily and major purchases. Banks and credit unions think twice about lending money to small businesses for several reasons, like a lack of credit and business history or collateral.
We make it simple for you.
At 1West, we’re committed to helping small business owners secure the right financing for their businesses. We make it simple for you, so you don’t have to submit mountains of paperwork and wait for months to receive your capital.
Receive your money within 24 to 48 hours.
We understand that some expenses can’t wait, so we make sure to give you instant access to working capital. 1West partners with more than 50 lenders in the marketplace to help you secure the right loan for your daycare center. Once your application has been approved, you’ll receive your money within 24 to 48 hours.
We promise full transparency.
We don’t like surprises here, so we promise full transparency in all our transactions. You always know where you stand with 1West.
How to Apply for Daycare Financing with 1West
We make construction financing simple.
Create an online account. The entire process is fully automated and it only takes a few minutes to sign up.
Choose a loan that’s best for your daycare. We understand that the process of choosing the right loan can be overwhelming, given the number of loan options available. With the help of our product wizard and our financial experts, you’ll land a loan that’s best for you.
Apply and compare different loans. Once we’ve found suitable loans, we submit your application to our lending partners. You’ll likely receive multiple offers from over 50 lending partners. We’ll help you compare your options and guide you throughout the entire process.
Apply for Daycare Business Loans with 1West
Give your little clients the best care they deserve with daycare financing loans. At 1West, we make sure to provide the daycare loan suitable to your needs. We work with more than 50 different lending partners, so you can easily compare rates, terms, and loan products.
Apply for a daycare loan today!
Find out which lender, loan, and terms best fit your hotel business at no obligation on your part.