Daycare Business Loans
Daycare loans can be exactly what you need to start or expand a childcare business.
The truth is that working parents struggle to find appropriate care. That’s where you come in. You can take advantage of this everlasting trend of relying on outside care and become successful.
Whether you need $1,500 or $400,000, Camino Financial has business loans to meet a daycare business owner’s financial needs.
Apply now!What Is A Business Loan For Daycare Centers?
Daycare business loans are financial products that provide a lump sum payment to ease the financial burden and eliminate using personal funds for business needs.
Applicants usually repay them monthly with added interest rates.
With the funding provided by these loans, you can cover expenses, make investments, or expand your business by setting up a second location.
These products are available through banks, credit unions, the SBA, and online lenders.
Having sufficient capital can help you stay competitive in the daycare industry and meet short and long-term financial demands. You’ll have money to pay your staff, replace equipment, or renovate your facility.
Who Can Benefit From Daycare Funding?
Childcare business loans can benefit different types of businesses in the daycare industry.
Family CareIn this type of business, a friend or relative usually cares for one person, whether a child or adult. The out-of-pocket expenses average $7,000+ per year, including medical expenses, rent, and home modifications. | Non-Profit DaycareThese organizations can qualify for grants and receive donations, but the business owners also use daycare loans to finance their operations. They have expenses similar to center-based daycares and provide comparable education. |
Center-Based DaycareThese structured environments help children get ready to attend public schools. Because there are more costs than other types of daycare businesses, loans help cover marketing, building maintenance, labor costs, administrative expenses, and consumable supplies. On average, daycare center owners spend $41,000+ per month caring for 50 children. | In-Home CareA residential environment daycare facility can use a daycare loan to fund a startup or ongoing costs for furnishings, supplies, business licenses and fees, and food. You can use the loan to cover a percentage of utility costs allowed by the IRS to operate a home business. If you own an in-home childcare business, you can count your children as enrollees. |
Camino Financial’s Daycare Business Loans And Requirements
We want to see you succeed. That’s why we offer different financial products that match different needs.
We also have minimal requirements. For example, you can apply with an ITIN if you don’t have an SSN.
Learn more about our loans for childcare businesses:
Startup Loans | |
|---|---|
| Amount | $1,500 to $7,500 |
| Type of payment | Monthly |
| Repayment terms | 12 to 36 months |
| Annual interest rate | 33% to 35% (APR) |
| Type of rate | Fixed |
| Origination fee | $90 in California, $0 in Florida (included in the APR) |
| Requirements |
*Our startup loans might not be available everywhere. |
Learn more about our startup loans
Microloans | |
|---|---|
| Amount | $5,000 to $30,000 |
| Type of payment | Monthly |
| Repayment terms | 24 to 36 months |
| Annual interest rate | 28.50% to 57% |
| Type of rate | Fixed |
| Origination fee | 6.99% of the amount |
| Requirements |
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Learn more about our microloans
Small Business Loans | |
|---|---|
| Amount | $10,000 to $400,000 |
| Type of payment | Monthly |
| Repayment terms | 24 to 36 months |
| Annual interest rate | 21.75% to 27.5% |
| Type of rate | Fixed |
| Origination fee | 5% of the amount |
| Requirements |
|
Learn more about our small business loans
Apply today!
Best Uses For A Daycare Small Business Loan: How Can It Help You?You want your daycare business to be safe, inviting, and enjoyable. You can use daycare financing for a wide range of investments. | |
|---|---|
 Invest In StaffA daycare business loan can give you the money you need to pay current staff members or hire and train new employees that’ll help you grow your business. |  Expand Your BusinessWith funds, you could purchase a second location, move to a larger space, buy a daycare business for sale, invest in land to build a building, or even start a daycare franchise. |
 Invest In TechnologyNowadays, all types of companies need to invest in tech. Daycare businesses are no different. You could afford computers, software for tracking stats, or payment processors with a loan. |  Improve Your Marketing EffortsYou can give your social media accounts a boost, set up a website, or invest in print advertising and promotions. You could do all that yourself or hire a marketing professional. |
 Buy SuppliesWith the funds from a loan, you can purchase or increase your consumable inventory, cleaning supplies, play-and-exercise equipment, art supplies, or safety equipment. |  |
How to Get A Small Business Loan for a Daycare
Our application process for business financing is easy and quick and takes less than 10 minutes.
 | 1. Apply OnlineAfter you answer several questions on our application, we’ll receive your information and prequalify you. | |
2. Provide DocumentationWe may ask you to provide additional personal or business-related information. Our secure online system allows you to share your data safely. | 3. Agree To The Loan TermsUpon approval, we email a loan contract, which details the financial arrangement so you can decide whether to accept the terms. All you have to do is sign the document electronically. | 4. Receive The Loan ProceedsWe deposit the loan proceeds directly into your bank account, which averages 2 business days. |
*The process may change slightly depending on which loan the customer qualifies for.
Get a QuoteWhy Camino Financial?
It’s discouraging when you don’t have enough capital to start, run, or expand your child care business. Many people give up, so if you are starting your own business, we support you.
At Camino Financial, we understand the challenges entrepreneurs face. That one reason fuels our motto of “No Business Left Behind.”
No doubt, you’ve heard a lender say they’re different. But in our case, we have proof! We offer advantages other lenders don’t when talking about small business loans for home daycare.
- Funding in as little as 2 business days
- No previous credit history needed
- Automated payments
- No collateral required
- Quick, reliable online application
- We do not charge prepayment penalties
- We make soft credit inquiries that don’t affect your credit score
- Lenient requirements for annual revenue and years in business
- Knowledgeable bilingual customer service reps
More Information On Business Loans
Business Loan Requirements: The Ultimate Guide
Small Business Loans For Women
Best Credit Union for a Small Business
FAQs |
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How do I start a child care business?Starting a daycare business may be the same as other entrepreneurship. It’s often to write a business plan, raise funding or get a loan, find a space to rent or purchase, and obtain the required paperwork and accreditations. Before they open for business, they hire staff and purchase equipment, insurance, supplies, and other necessary items. |
How much is a daycare business worth?The amount varies based on whether you own or rent the property, your annual revenue, number of enrollments, the daycare’s location, and competition within your area. These factors determine whether a business owner uses a multiplier of 35% to 65% of their annual revenue to value their business. |
How do I get funding to start a daycare?The key to obtaining funding is to prepare yourself. Have your financial documents in order like your business bank statements, and know your credit score, annual revenue, and other information before applying for a loan. You should know whether you’ll meet a lender’s requirements before completing an application. |
What do I need to start a childcare business?Potential daycare business owners have a broad knowledge of early childhood education to provide a suitable environment for children. |
What is the purpose of a daycare business loan?Borrowers can use daycare business loan proceeds to start, run, or expand a business. Using the funding the best way can help a business succeed and grow. |
How much do daycare owners make?The profit margin (not gross revenue) for daycare centers averages between $20,000 to $60,000. Two primary factors that determine profitability include the type of daycare center and its location. |
How much interest do I have to pay when getting a business loan?You will have to pay interest according to the type of loan you’re taking out, the lender you choose, and your creditworthiness. However, you can generally expect to pay an interest rate than you would on a personal loan. |
*Terms and requirements subject to change without notice.
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