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Business Loans for Day Care

Business Financing for Day Care Business

Shield Funding has been helping the owners of daycare centers and other child-focused businesses for over a decade. We offer a wide variety of loans that help you keep your business running through hard times or grow it during good ones.

There’s a huge market for daycare and childcare centers. Two-thirds of parents think that a lack of access to childcare is a serious problem. Businesses set to solve this problem can be extremely successful—but it can be more expensive than you might expect to run a daycare center.

Early in the life of your childcare business, you might be looking to cover insurance and salaries. Later, once you’ve attracted some clients, you’ll want to expand your offerings to improve your revenue stream. We can help with both. We help small business owners secure small business loans online with competitive rates and flexible terms. Get started growing your business today.


Shield Funding helps secure small business loans to grow your business. Here are some of the loan products that daycare center owners might find useful:

Small Business Loans

Our term loans for daycare centers give you flexible funding that you can use for any business expense. It might be small enough to cover your bills for a couple months during a slow season—or large enough to pay for an entirely new facility. We offer loans of up to $1,000,000 so you can run or grow your business in the way that works for you.

Large or small, short or long, our small business loans for daycare centers help you provide the best care possible. And because we’re an alternative lender, we can offer flexible and borrower-friendly terms.

As long as you’ve been in business for two months, bring in $8,000 in monthly revenue, and have a credit score of 500 or more, you can qualify for a loan from Shield Funding. And with interest rates as low as 5%, you’ll pay less over the life of the loan than you would with a traditional loan.

Unsecured Business Loans

Most traditional banks require collateral to secure loans—and in businesses that have large commercial inventory or industrial machinery, that’s not a problem. Daycare centers might have more difficulty. There’s certainly inventory and equipment, but the most valuable asset you have is the building, which may be your house.

We don’t like the idea of childcare providers putting up their houses to get loans. So we offer unsecured loans. No collateral required.

You can still get up to $1,000,000 with rates as low as 9%. If you bring in $10,000 per month and you’ve been in business for a year, you can qualify. Because we’re an alternative lender, we can offer loans that few traditional banks can, and we work with borrowers who have credit scores down to 500.

Business Line of Credit

Childcare centers need to be prepared for unpredictable times, and a business line of credit can help. Think of it like a credit card—you have a credit limit, and you can spend up to that credit limit at any time. Then you pay it back in monthly installments.

So when you need extra food for a big day, or to replace cribs and beds, you have the funds available. But you don’t pay interest on the money you haven’t used, so it’s more economical than a standard loan.

If you’ve been in business for six months, have at least $10,000 in monthly revenue, and have a credit score of 650 or higher, you can qualify for up to $250,000 in credit. And you can get interest rates as low as 5%, so you’ll save a lot of money over a credit card.

Small Business Loans for Women

92% of workers in the childcare industry are women. And that can make it difficult to get approved for a traditional bank loan. But we work specifically with female business owners to make sure they get the funding they need.

Our loans for women running daycare centers can get you up to $1,000,000 with interest rates as low as 12%. If you’ve been in business for two months, bring in $10,000 every month, and have a credit score above 500, you can qualify.

No matter what you need funding for, our small business loans for women can help make sure you get what you deserve.


Here are Some Business Financing Tips you Might Consider Using a Business Loan for in your Childcare Facility.

Equipment and Supplies

It might seem like a daycare center doesn’t need much equipment. But you could spend up to $600 for each child that you’re caring for. Cribs, beds, changing tables, toys, games, and highchairs are just the beginning. You might include a playground set (or two), educational items, and more.

You’ll also want consumables like cleaning supplies, diapers, and so on. And that doesn’t even begin to cover food.

If you’ve been running your daycare for a while, you probably have a handle on these expenses. But when you’re expanding your capacity, they can add up to a very difficult bill. That’s when taking a small loan comes in handy.

Increasing your capacity is a great way to bring in more money, but you may need some help to kickstart the process. Getting the right equipment in place right away is crucial for providing a high level of service.

Staff According to Local Laws

Bringing in more kids is great—but it usually means you’ll need to bring in more adults to take care of them, too. State laws vary, but there’s often a minimum staff-to-child ratio that you’ll need to meet.

For example, in Colorado you need one adult for every 10–15 children, depending on their ages. Childcare.gov recommends one adult for 3–4 infants. These numbers could be higher in your state, requiring an even larger investment in salaries.

When you’re growing your business, make sure that you have enough staff to meet your state’s licensing requirements. But know that you’ll have to pay these staff, too—and that you may need to pay them before you see the fruits of your expansion.

A line of credit or a short-term loan can ease the transition from a smaller to a larger center and help you bring on the right staff even if money is tight.

A Business Vehicle

Do you offer pickup or dropoff of children? What about taking them to the park or the zoo? Expanding your daycare center to offer more perks might mean using your car. If you don’t want to use your personal car, a business vehicle is a great idea. A minivan or similar vehicle will be a big help.

Of course, buying a new vehicle is very expensive. You probably don’t have the cash on hand to make that happen. An all-purpose small business loan for a daycare center could cover the cost of the vehicle, as well as maintenance, insurance, fuel, and other costs.

Don’t let the upfront cost keep you from offering higher-quality service! Explore your loan options to add a daycare vehicle to your business.

Marketing and Advertising

It can take up to a year for marketing to pay off for childcare centers. But there’s no better way to grow your business. Getting your business information in front of parents is crucial for attracting more customers.

That might mean placing posters in public places around town, running an online advertising campaign, or even hiring a social media marketing professional for your business. In a competitive field like childcare, sparing expenses might mean getting less business.

Unfortunately, you won’t see a return on your marketing and advertising spend for a while. And that makes it a tough investment. Taking a loan to start the process is a great way to make sure that you’re investing enough to actually make a difference.

Interested in hearing more about how our loans can help your daycare center? Not sure which loan is right for you? Have questions about the application or approval process? Get in touch today!