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 finances. 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? To help with these immediate payments, you might consider investing in child daycare business loans.
Given the state of the industry, it’s no wonder business owners are seeking child daycare business loans. According to Psychology Today, 60 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 U.S. Bureau of Labor Statistics noted there were over 1.2 million childcare workers in 2016, with jobs in this field on the rise. The number of childcare workers is projected to increase by over 84,000 between 2016 and 2026. This is a steady growth rate of 7 percent.
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, 29 percent of mothers stayed at home with their children in 2012. 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.
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.
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:
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.
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.
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.
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.
At QuickBridge, we make securing a small business loan for a daycare center easy. Why are we a preferred choice for child daycare business loans?
We have higher approval ratings. Many traditional banks have approval ratings that range from 13 to 20 percent. Alternative lenders approval ratings typically range between 61 and 64 percent. Plus, alternative lenders may be willing to assist business owners with average to low credit scores.
We offer flexibility on your child daycare business loans. We help you choose what loan conditions, terms, and repayment options work best for your business and finances.
We require minimal paperwork. You’ve got a business to run; you don’t have time to read and fill out dozens of forms. We require minimal paperwork from small business owners applying for a loan. This makes it easier for you to get to work deciding how to best spend your child daycare business loans.
We offer fast approvals. Many traditional banks make business owners wait weeks or even months to find out if they qualify for a loan. At QuickBridge, we offer quick approvals and 24-hour funding.
We strive to provide business owners with immediate access to the funds they need to succeed. That way, you can spend more of your time doing what you do best, taking care of children. Get in touch with us today to find out more about our lending options.