INDUSTRY SOLUTIONS
Funding Built for Child Care & Daycare Centers
Your payroll is locked to state staff-to-child ratios, so it barely moves even when a classroom sits half-full, and the subsidy money for the care you've already delivered can take weeks to arrive. We give licensed child care, daycare, and preschool centers fast, flexible working capital so payroll and the doors stay open while the revenue catches up.
Soft credit pull, won't affect your score. No obligation.
Funding Amounts
$10,000 – $500,000
Approval Speed
4 – 8 hours
Credit
All credit profiles considered
Use
Payroll, subsidy float, fall ramp & more
THE CHALLENGE
Full Classrooms, Cash That Arrives Late
A licensed child care center has a cash-flow shape almost no other small business shares: your single biggest cost is locked in place by law, and a large share of your revenue is paid weeks after you've delivered the care. In the Federal Reserve's Small Business Credit Survey, the most common reason firms seek financing is simply to cover operating expenses, and for a center that gap has a very specific shape. Here's where the cash gets stuck.
Your payroll is locked to enrollment, by law
Federal law requires every state and territory to set staff-to-child ratios and group sizes by age group, and they're strictest at the bottom of the age range, varying significantly by state (Childcare.gov). You cannot legally reduce caregivers below the ratio for the children physically present, so when a few families withdraw or a classroom sits half-full, your staffing cost barely moves even as tuition drops. Labor is your largest single operating line and the least flexible: the median wage for childcare workers was $15.41 per hour in May 2024 (Bureau of Labor Statistics). That makes payroll both your biggest cost and the one you have the least room to cut.
You deliver the care now, the subsidy pays weeks later
Centers that serve families on the Child Care and Development Fund (CCDF) or state child-care assistance are, in most states, paid only after the care has been delivered, and the reimbursement can arrive up to 60 days later, often based on attendance rather than enrollment, so an absent subsidized child can mean a missing payment for that day. More than 140,000 providers participate in the subsidy program (New America and Child Care Aware of America). Meanwhile you've already fronted payroll, rent, food, and supplies. That's a textbook working-capital gap: real, earned receivables stuck behind a slow-paying public payer.
A soft summer, then a front-loaded fall
Enrollment swings with the school calendar. June through August commonly softens as school-age children leave and families travel, while the rent, the ratio-driven payroll, and the lease all keep running at full cost. Then fall re-enrollment requires marketing spend and new-staff hiring before the tuition arrives. Margins are thin and many centers report compensation is already hard to sustain (Federal Reserve Bank of Minneapolis), so there's little reserve to absorb a soft summer or a front-loaded fall.
Staffing is the constant pressure
Even with ratios fixed, keeping classrooms staffed is its own challenge. Childcare-worker employment is projected to edge down through 2034, yet about 160,200 openings are expected every year on average, essentially all driven by the need to replace workers who leave (Bureau of Labor Statistics). High turnover against a legal minimum staffing floor means you're constantly hiring and onboarding just to keep classrooms open, and that costs money up front, before the enrollment those staff support turns into collected revenue.
Teacher payroll is due on schedule even when a subsidy reimbursement is still in process, and fall enrollment has to be funded before fall arrives. A 30-to-90-day SBA loan, often approved for less than the amount requested, doesn't fit either deadline. Our working capital does: funded in days, repaid the way a child care center's tuition and subsidy revenue actually flows.
How Child Care Centers Use Our Funding
Meet Ratio-Locked Payroll
Keep a fully-staffed, ratio-compliant classroom open through an enrollment dip, instead of forcing a closure that loses the license slot and the families.
Bridge the Subsidy Float
Cover payroll, rent, food, and supplies while a CCDF or state subsidy reimbursement works its way through weeks of in-arrears processing after care is delivered.
Fund the Fall Ramp
Pay for re-enrollment marketing and new-staff hiring before fall tuition lands, so you enter your busy stretch fully staffed and at capacity.
Stock Food & Supplies
Keep classrooms supplied and the kitchen stocked, and take bulk pricing on the food, learning materials, and consumables a full center runs through.
Classroom & Build-Out Costs
Fund leasehold improvements, a new classroom, playground or furniture, and licensing fees as you expand capacity, with terms that spread the cost.
Carry the Soft Summer
Keep your core teachers, lease, and insurance covered through the slower summer months, then ramp back up when fall enrollment arrives.
One Application. We Match You to the Funding That Fits.
Most centers we fund use working capital they can put toward anything. You don't need to know which product you want, apply once and we'll match you to what you qualify for.
Working Capital
Flexible funding for payroll, the subsidy float, food, or a soft summer month. Put it toward whatever keeps the doors open and the classrooms staffed. This is where most centers start.
Learn MoreAR & Invoice Factoring
Your CCDF or state subsidy reimbursement is a real, earned receivable from a slow-paying government payer. Factoring advances cash against it now instead of waiting weeks for the payment to land.
Learn MoreBusiness Line of Credit
Revolving cash you draw on for the summer trough and the fall hiring ramp, then repay as enrollment and reimbursements come in. Interest applies only to what you use.
Learn MoreBusiness Loans
Lump-sum capital for a bigger move: opening a second location, a major expansion, or a full season's ramp, on a longer, structured term.
Learn MoreSBA Loans
Government-backed funding with longer terms and competitive rates for larger, planned investments and true expansion, when you have time for a more involved process.
Learn MoreRevenue-Based Financing
Funding with repayment that flexes with your revenue, easing off through the slower summer months instead of holding a fixed payment.
Learn MoreWhy Child Care Centers Choose Us
We've funded single-site daycares and multi-classroom preschools and early learning centers running private-pay and subsidy families side by side. We know your biggest cost is fixed by law, and that the money for care you've already delivered can take weeks to arrive.
Fast, flexible working capital is built for that reality. We know ratio-locked payroll, the wait on subsidy reimbursements, and what it takes to ramp up for fall without floating it all yourself.
See What You Qualify For- We understand ratio-locked, enrollment-driven cash flow
- Funding fast enough to make this week's payroll
- Bridge the CCDF subsidy float without floating it yourself
- Fund the fall re-enrollment ramp before tuition arrives
- Approval in 4 – 8 hours, not weeks
- All credit profiles considered
Simple Requirements to Get Started
If your child care center has been operating for at least 6 months and generates $10,000 or more in monthly revenue, you're likely a fit.
6+ Months
In Business
$10K+
Monthly Revenue
All Credit
Profiles Welcome
See What You Qualify For
It takes less than 30 seconds. Soft credit pull, won't affect your score.
Child Care Center Funding FAQs
Can a child care center get working capital while waiting on CCDF or state subsidy reimbursements?
Yes, this is one of the most common reasons centers come to us. In most states, providers serving subsidy-eligible children are paid only after care has been delivered, and the reimbursement can arrive up to 60 days later, often based on attendance. Meanwhile you've already fronted payroll, rent, food, and supplies. Working capital advances you the cash now so those costs are covered while the subsidy payment works its way through, and you repay as the money comes in.
How fast can a daycare or preschool get funded, and can it cover this week's payroll?
Approval typically comes within 4 to 8 hours, with funds following shortly after. That speed is the main reason center owners choose us over a bank or an SBA loan, where the same request can take 30 to 90 days. When payroll is due and a reimbursement hasn't landed yet, the arrival date of the money matters more than a slightly lower rate.
Do you require a minimum monthly revenue or time in business for a child care center?
Most centers we fund have been operating for at least 6 months and generate $10,000 or more in monthly revenue. Your enrollment and day-to-day performance matter more than a perfect credit score. All credit profiles are considered.
We have a soft summer and a busy fall. Does seasonal enrollment disqualify us?
No. Seasonal swings are normal for centers, June through August often softens as school-age children leave and families travel, while rent, the ratio-driven payroll, and the lease keep running at full cost. Then fall re-enrollment requires marketing and hiring spend before the tuition arrives. Working capital and a line of credit are built for exactly that pattern: carry the trough, then fund the ramp.
Can funding cover payroll when a classroom is under-enrolled but we still must meet staff-to-child ratios?
Yes, and it's one of the clearest reasons to use working capital. Federal law requires every state to set staff-to-child ratios by age group, and you cannot legally reduce caregivers below the ratio for the children physically present. So when a few families withdraw or a classroom sits half-full, your staffing cost barely moves even though tuition drops. Funding bridges that gap and keeps a ratio-compliant classroom open instead of forcing a closure that loses the license slot.
Do you fund both private-pay centers and centers that accept government subsidy families?
Yes, both, and many centers run both payer types in the same classroom. Private-pay tuition is usually prompt and often collected in advance, so the pressure there is the day-to-day operating cost. The subsidy portion is the slow part, paid weeks after care is delivered. Working capital, a line of credit, or factoring against the subsidy receivable all fit, and we'll match you based on your actual mix.
Can we use the funds for fall re-enrollment marketing and hiring before tuition arrives?
Yes. Funding the pre-season ramp is exactly what a line of credit or working capital is for. You draw on it to run re-enrollment marketing and hire and onboard staff ahead of the fall, then repay as tuition and reimbursements come in. The goal is to enter your busy stretch fully staffed and at capacity instead of scrambling once families return.
Will applying affect my personal or business credit score?
No. Checking what you qualify for uses a soft credit pull that won't affect your score, and there's no obligation to move forward.
Do you finance facility build-out, leasehold improvements, or adding classrooms?
Yes, as a use of working capital or, for a true expansion, an SBA loan. We can fund leasehold improvements, a new classroom, furniture and playground equipment, and licensing fees. One thing to be clear about: we are not a commercial real-estate, mortgage, or hard-money funding partner, so if your headline need is buying or building the actual building, that's a different product. We fund the operating-cash-flow gaps those products don't cover.
Do you offer tuition financing or payment plans for the parents we serve?
No. We fund your business, not the families you serve. Our capital goes to your center, for payroll, the subsidy float, food, supplies, and the costs of staying open and growing. It is not a consumer or parent-financing program and not a tuition payment-plan product for families. How you bill and collect tuition from parents stays entirely with you.
Is this a loan against our subsidy payments, or do you take over collecting our CCDF reimbursements?
We do not take over collecting your CCDF reimbursements. We are not a subsidy-billing or revenue-cycle service, and we don't take control of your subsidy payment stream. With working capital, the funding goes to your center and you keep billing the state exactly as you do today. If factoring is the better fit, we can advance against that earned receivable, but you stay in control of your business and your relationship with the payer.
Can a newer or recently expanded center qualify, and is all credit considered?
All credit profiles are considered, and your enrollment and revenue matter more than your credit score. Most centers we fund have been operating for at least 6 months and bring in $10,000 or more in monthly revenue. If you've recently expanded or added classrooms and are building back toward target enrollment, it's worth checking, applying uses a soft credit pull and there's no obligation.
Specialized Funding
Other Business Types We Fund
We build dedicated funding guides for specific business types. Explore others below, or see the full Childcare & Education overview.
Insights
