Quick answer: Daycare centers, preschools and childcare providers most often use a term loan to expand capacity or renovate classrooms, a line of credit to cover payroll while waiting on state subsidy payments, and an SBA loan to buy a building. Established centers with steady tuition deposits can often be funded within days by a non-bank lender.
Why childcare centers need financing
Licensing requirements, safety upgrades and staff-to-child ratios make childcare expensive to run and to expand. Some tuition comes from state subsidy programs that pay on a delay, while payroll is due every week or two.
Common uses for childcare and daycare financing
- Adding classrooms or expanding licensed capacity
- Playground, safety and licensing upgrades
- Transportation vans
- Furniture, learning materials and technology
- Payroll while waiting on subsidy payments
- Opening a second location
Financing options for childcare centers compared
| Option | Best for | Speed |
|---|---|---|
| Term loan | Expansion, renovations, new locations | Same day to 2 days |
| Line of credit | Payroll and subsidy payment gaps | 1–3 days |
| Equipment financing | Vans, playground equipment | A few days |
| SBA loan | Buying a building or center | Several weeks |
What lenders look at for childcare centers
Lenders look at tuition and subsidy deposits, enrollment and waitlist, licensing status, existing debt and time in business.
What you need to qualify with Brookestone Funding
- 2+ years in business
- $30,000+ in monthly revenue
- 600+ credit score
- Recent business bank statements
Qualified childcare centers can borrow $10,000 to $2,000,000 with terms up to 36 months and rates starting at 8%. Complete applications submitted early in the day can be funded the same day.
Tips before you apply
- Have enrollment numbers and your waitlist ready — they show demand for expansion.
- Make sure your license is current.
- Have bank statements showing both private tuition and subsidy deposits.
- Compare offers on the total amount you’ll repay, not just the rate, and size the payment to your slowest month.
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Frequently Asked Questions
Can a childcare center get a business loan with a 600 credit score?
Yes. Brookestone Funding works with childcare centers that have a 600+ credit score, 2+ years in business and $30,000+ in monthly revenue.
How fast can a childcare center get funded?
Qualified childcare centers can often be funded the same day with a business term loan, or within 1–3 days with a line of credit, once the application and recent bank statements are complete.
Can a daycare get a business loan?
Yes. Childcare centers with 2+ years in business, $30,000+ in monthly revenue and a 600+ credit score can qualify with Brookestone Funding.
What is the best loan to expand a daycare?
A term loan works well for renovations and added capacity, while an SBA loan may be better for buying a building if you can wait several weeks.
Ready to see what your childcare center qualifies for? Brookestone Funding offers business term loans, lines of credit and SBA loans from $10,000 to $2,000,000, with same-day funding available for qualified businesses. Apply in minutes, see our business loan options, or call 212-258-0602.
