Daycare Funding

There are over 635,000 daycare businesses in the United States, and the childcare industry is valued at $54 billion. Foster your daycare center, maintain the highest standards of care, and outshine your competition with up to $500,000 in funding from Greenbox Capital® in as little as 24 hours.

Daycare Funding You Can Trust

The COVID-19 pandemic caused a decline in revenue for daycare businesses in 2020, offsetting the rise of dual-income households that fueled consistent growth for child care businesses in the years preceding. The childcare industry is projected to rebound, and small businesses will continue to dominate the daycare landscape. That means there’s lots of competition—and lots of opportunity for your daycare business to grow.

Parents expect the highest level of care for their children, whether you offer early education programs, after school care or all day child care, or specialized care such as infant care. With stable revenue and a strong financial history, you may be able to get funding you need from a traditional lender, but the application process can take months and requires extensive paperwork, all with no guarantee of approval.

With a streamlined online application and flexible approval requirements, Greenbox Capital® can approve more daycare funding than traditional lenders—and we can approve your funding faster, with funds deposited in as little as 24 hours. With several daycare funding options from as low as $3,000 up to $500,000, Greenbox Capital can help grow businesses in all specialties, including home daycares, daycare centers, specialized care, and more.

Daycare Funding Rates

Daycare funding rates depend on the type of alternative small business funding you receive. Most funding options use a factor rate instead of a traditional interest rate. Factor rates are simple decimal figures that show how much “extra” you will owe on the original amount of the loan. Your factor rate is determined based on your risk assessment.

Daycare Funding Solutions

Our friendly, expert Funding Advisors will work with you to determine which funding option will help you achieve your goals without compromising your daycare’s cash flow.

Merchant Cash Advance

You get working capital when you need it. We’ll receive a percentage of your daily or weekly credit card sales until the advance is repaid.

Invoice Factoring

Sell us your pending invoices in exchange for the net amount in cash. You’ll receive the balance of the invoices’ value when we receive payment (minus our fee).

Collateral Loan

A secured loan that uses commercial real estate to reduce risk. Because the loan is secured, you may be approved for larger loan amounts with lower rates and fees.

Business Line of Credit

Borrow as much or as little as you need without the obligation of a fixed term loan. Draw and repay as you go, and only ever pay interest on the amount you've borrowed.

How To Use Daycare Funding

There are no restrictions on how you can use daycare funding from Greenbox Capital. Daycare funding is typically best used for supporting growth initiatives that will increase your revenue, such as:

Implementing direct invoicing and online payment technology
Investing in continuing education and training for staff
Hiring additional staff to meet demand and increase enrollment
Providing educational resources for parents
Purchasing new equipment and supplies, such as mats, furniture, toys, or technology
Remodeling your space to provide updated, safer facilities
Installing CCTV and other security monitoring devices in and out of your facility
Boosting marketing and promotion to encourage referrals and enrollment

Alternative daycare funding can also help when you need a quick influx of working capital to meet the unique challenges of your field, such as:

Collecting tuition on time while balancing personal relationships with parents
Complying with strict regulations and requirements
Maintaining rigorous safety standards
Adhering to strict staff-to-child ratios
Accommodating different care requirements and standards for different age groups
Managing records such as enrollment rosters, child personal and medical histories, special needs, etc.

How Daycare Funding Works

1

Apply

Gather 3 months of bank statements and other records. For faster approval, grant us secure access to your bank account’s transactional data.
2

Choose Funding

A Funding Advisor will reach out to you within 1 hour (during regular business hours) to complete your application & discuss your funding options.
3

Get Funded

Once you and your Funding Advisor determine what funding option works for your business, your funds can be approved and deposited within 24 hours.
4

Set Repayment

Payments will be automatically deducted from your business’s daily or weekly debit and credit card sales. Payment amounts will be based on your sales.

Will You Qualify for Daycare Funding?

Exact qualification requirements depend on the type of daycare funding you are seeking. Approval for daycare funding from Greenbox Capital isn’t based solely on your credit score or financial history. Instead, we focus on the overall health of your daycare center, including:

Business revenue
Cash flow
Vendor payment history
Years in business
Public records

Daycare Funding Q&A

Invoicing and collecting tuition payments from my clients is an uphill battle. Can I use alternative funding to make it easier for my clients to pay tuition?

Yes, upgrading your technology and software to make it easier for your clients to pay their invoices is an excellent use of alternative daycare funding. We always recommend using funding to improve or grow your business.

Why should I consider an alternative lender for my daycare funding?

Traditional lenders can take weeks or months to review and approve your loan application, and most applicants are rejected. As an alternative lender, we have different approval requirements, and can approve funding for “high risk” industries. We can provide you with the funds you need to cover project expenses, operating costs, supplies, and more, often in less than 24 hours.

How can I get funding for a daycare center?

You can get funding for a daycare center from traditional lenders like the SBA or a bank, as well as from alternative lenders like Greenbox Capital. Alternative lenders have more flexible approval requirements that consider the overall health and potential of your business—not just your credit score—and offer revenue-based financing options that are more ideal for businesses with lower credit scores, such as merchant cash advances for low credit. Contact one of our Funding Advisors to learn more.

I want to expand my daycare center but I need to hire someone to meet staff-to-child ratios. What type of daycare funding should I consider?

Expanding your daycare center by hiring new staff is an ideal use of daycare funding. We have several funding options that could work for you. It’s always best to speak with one of our Funding Advisors to assess your unique circumstances. They’ll take the time to get to know your business’s history and your plans for growth so they can recommend the best funding option for you. Invoice factoring, merchant cash advances, and collateral loans are all commonly used for expanding a business.

What are the typical uses of funding for a daycare firm?

There are many ways you could use your funding. Some uses of funding for a daycare center could include hiring staff, marketing and advertising expenses, equipment and software purchases, expansion costs, and much more. Make sure to consult with one of our Funding Advisors to ensure you are using your funding in the most efficient and effective way possible.

Are there any restrictions on how the funds can be used?

There are no restrictions on how funds from Greenbox Capital can be used. We have a very simple application process, with same-day funding available. To get started, fill out our one-page application form or speak with a Funding Advisor.