How to get a loan for a daycare business?
To get a loan for a daycare business, lean on what makes childcare attractive to lenders: licensed operations, recurring tuition revenue, and waitlists that prove demand. With 3-6+ months of enrollment deposits and roughly $10K+ in monthly revenue, working capital loans and lines of credit are realistic; established centers buying or renovating facilities can reach for SBA financing. Meanwhile, every month your expansion waits, the families on your waitlist enroll somewhere else. Quordx Capital matches daycare owners to fitting lenders from its 50+ network through one free application.
Part of our guide to Business Loans.
Last updated · Reviewed by Cody Dreis
50+ Lenders|Funding in as little as 24 hours
What lenders want to see from a childcare business
Daycares have a quality most small businesses envy, predictable monthly revenue, and underwriting rewards it:
- Steady tuition deposits. Bank statements showing consistent monthly enrollment income are your strongest evidence. Subsidy payments count as revenue too. - Licensing in good standing. Your state childcare license signals regulatory compliance and operational legitimacy; have it ready with your entity documents. - A clear use of funds. "Convert the spare room to add 12 infant slots at $1,400/month each" is a fundable sentence. Lenders finance capacity that converts directly to revenue. - The right product per project. Playground equipment, kitchen upgrades, and vans fit equipment financing ($5K-$5M+, equipment as collateral). Hiring and licensing costs for a new room fit working capital ($5K-$500K). Buying or building a facility fits SBA 7(a) (up to $5M, current variable rates roughly 10.5%-14%) or commercial real estate financing.
Home-based providers can qualify as well, though revenue scale usually points them toward smaller products and business credit cards.
Daycare funding options Quordx Capital brokers
Working capital loan: Best for hiring teachers, licensing costs, and classroom build-outs.
Equipment financing: Best for vans, playgrounds, furniture, and kitchen equipment: the items secure the loan.
SBA loans: Best for buying or expanding a facility at the lowest long-term rates.
Business line of credit: Best for managing the gap between payroll and tuition or subsidy payments.
Estimate your funding
Answer a few questions about your business to see a likely range.
How Quordx Capital Works
The application takes roughly 5 minutes; documents are the usual set: bank statements, latest business tax return, ID, entity papers, voided check (larger SBA deals add a P&L). Quordx Capital's matching process compares your profile against 50+ vetted lenders and delivers your 3-7 likeliest approvals, ranked. Lender decisions arrive in 24-48 hours as a rule, with funding in 3-7 business days; SBA routes take longer but cost less.
What to Expect
Expect your recurring tuition revenue to work in your favor: childcare reads as stable income, not risk. If your personal credit is mid-tier, revenue-based options keep the door open while stronger files unlock SBA pricing. Every fee is disclosed upfront, the matching is free, and there's no obligation to accept anything.
Apply for Funding
No obligation · Initial inquiry doesn't impact credit · Takes about 10 minutes
Written by
Cody Dreis
Founder, Quordx Capital
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Quordx Capital is a business funding broker, not a lender. Lenders make every credit decision and set the rate, fees and terms, and not every business qualifies. Quordx may be paid by a lender when a deal funds. Full disclosures