There are many reasons owners of child care facilities turn to day care center funding for help in running their business. As an owner, you know that there are always things that need updating, growth opportunities that you want to take advantage of, and daily payments that you have to make. Here is what owners like you are using child care center funding for:
1) New Locations
One of the most common reasons that child care facilities borrow money is to open new locations. If you are looking to expand, it’s important to first consider your community’s needs. Maybe the community needs a new location in an underserved area that is on those residents’ way to work, or nearer their homes; or perhaps there are age groups with high volumes in your community that are not being accommodated. If you don’t have the room in your facility to expand, or you want to target an underserved location, opening up a new center could boost your revenue. A business expansion loan will help you get the child care funding you need to grow while maintaining a steady cash flow.
2) Capital Renovations
Safety and aesthetics are keys to keeping your enrollment numbers up. With parents being the decision makers, impressing them by ensuring their children’s safety and comfort will keep your current customers coming back and encourage new families to join. Owners like you invest in renovating their facilities to ensure that all safety codes are up to date and that the exterior and interior of the child care centers look fresh and new.
3) Adding Services
In the competitive field of child care, having services that your competition lacks could set your center apart from others in your neighborhood. Day care center owners take out child care business loans to add food services, extend hours to better suit the needs of parents, expand to additional age groups (this requires building out space and hiring additional staff) and add additional recreational activities, such as playgrounds.
4) Hiring More Staff
Parents care a great deal about the safety and the aesthetics of the center, but they also want assurance that their kids are in the top educational programs available, even at their young age. Day care owners like you invest in hiring additional teachers to enhance their educational programs, which, in turn, helps to keep their slots filled.
5) Working Capital and Cash-Flow Needs
Day care businesses use working capital loans as a better way to manage their cash-flow financing needs. While you aim to maintain a smooth and consistent cash flow, there are times you need extra cash to pay bills, manage inventory and make on-time payroll. Many owners of day care centers who are consumed with the busy day-to-day operations of their business can be taken by surprise by an immediate need for extra cash. Of course, it is advisable to keep a rainy-day fund with extra cash, but don’t be afraid to ask for outside financing when you need it.
Small Business Financing for Your Day Care Business:
No matter what improvements you are looking to make to your business, obtaining the right financing for your day care center is key to having a sustainable business. Many owners like you finance upgrades through high-cost credit cards, which put unnecessary strain on cash flow. If you have gone this route in the past, you can use a Fundation day care center funding to refinance your high-cost debt. If you are just starting the search for the right small business financing option for your day care company, make sure you avoid these daily pay, high-interest-rate products, which can be very harmful to your business.
The information contained on this page is for general informational purposes only. It is not legal advice and should not be relied upon in making borrowing decisions. Fundation loans are subject to lender approval.
Fundation combines the benefits of a bank loan with the ease and efficiency of an online lender. We offer conventional loans with competitive rates to businesses with varying credit profiles. Our technology allows us to deliver capital in as few as 3 business days through streamlining the collection and evaluation of customer information and conducting the majority of the lending process electronically. As a direct lender, we use our own capital to originate and hold the loans we make, so that we can focus on building relationships with our customers. Our dedicated customer relationship model enables us to understand each unique borrower’s business. This level of service, coupled with our best-in-class products, is why many of our customers come back to us repeatedly for more capital.