Funding for Daycare & Childcare Centers
Steady tuition billing gives underwriters predictable revenue to fund against, and a line of credit smooths the biweekly-payroll-versus-monthly-tuition rhythm without long-term debt.
Childcare runs on a math problem the state wrote for you: ratios fix how many teachers each room requires, whether the room is full or two kids short. Payroll lands every two weeks; tuition lands monthly; subsidy reimbursements land whenever the agency processes them. Add licensing requirements that turn a simple expansion into a renovation project, and a center can be full, beloved, and still cash-tight. Banks rarely understand the model. Broadway funds on what your center actually banks — three months of statements, one short form, soft credit pull, same-day decision, funding in as little as 24 hours.
The challenge
Staffing ratios are set by law, not by enrollment, so payroll is a fixed cost that does not flex when a family moves away. Tuition arrives monthly while wages go out every two weeks.
How Broadway Advance helps
Steady tuition billing gives underwriters predictable revenue to fund against, and a line of credit smooths the biweekly-payroll-versus-monthly-tuition rhythm without long-term debt.
What owners use it for
- Renovate rooms to meet licensing requirements
- Build playgrounds and outdoor learning areas
- Hire teachers ahead of new enrollment
- Buy vans for pickup and drop-off programs
- Upgrade security, cameras, and check-in systems
- Open an additional classroom or second location
See your real number in about five minutes.
Apply nowFunding options that fit daycare & childcare centers
Term Loan
The lowest rates and longest terms, with predictable monthly payments.
Up to $5,000,000 →Business Line of Credit
A revolving cash reserve you only pay for when you draw on it.
Flexible limits →Merchant Cash Advance
Immediate cash today in exchange for a small slice of future sales.
Up to $2,000,000 →Daycare & Childcare Centers funding questions
Can I get funding to open a second location?
Yes — expansion is one of the most common reasons centers come to us. A term loan up to $5M on 3, 5, or 7-year terms fits a project of that size, with our lowest rates for owners with good credit. The existing center's three months of bank statements carry the application, since steady tuition billing is exactly the revenue underwriters want to see. A waitlist helps tell the story. One form, soft pull, same-day decision.
State subsidy payments come in arrears — can funding bridge that gap?
Yes, and a line of credit is the right shape for it. Subsidy programs reimburse after care is delivered, sometimes well after, while your teachers are paid on time regardless. A revolving line lets you draw what the gap requires each cycle and repay when the reimbursement posts — you pay interest only on what you draw. That beats taking a lump-sum advance for a recurring timing problem, and we will say so plainly.
Enrollment dips every summer — will that hurt my approval?
Not if the statements show a real, recurring pattern, and summer dips in childcare are about as well-known a pattern as exists. Underwriters read seasonality against the full picture: steady tuition the rest of the year, re-enrollment every fall. If you apply in the dip, an MCA remits in proportion to revenue, so slow months cost less; or time a line of credit before summer so the cushion is in place. Applying is a soft pull either way.