You’re not short on enrollment. You’re short on net-45.
Naptime Capital factors child care and after-school receivables with facilities from $10,000 to $5,000,000, advancing up to 90% of an approved invoice within 24 hours. There is no minimum credit score, because the credit decision is about the customer who owes you — an employer, a school district, a hospital system, a backup-care platform — not about you. A facility opens in 3 to 5 business days.
What are the criteria?
Invoice factoring — criteria
- Facility size
- $10,000 – $5,000,000
- Advance rate
- Up to 90% of the approved invoice face value
- Speed
- 3 – 5 business days to open a facility; 24 hours per invoice once open
- Minimum credit score
- None — the obligor’s credit is what’s underwritten
- Minimum time in business
- 3 months
- Minimum receivables
- $20,000 in open, invoiced B2B receivables
- Invoice age accepted
- Current through 90 days
- Recourse
- Recourse and non-recourse facilities both available
- Documents
- Application, A/R aging report, sample invoices, customer list, 3 months of business bank statements
- Not eligible
- Parent-paid tuition, registration fees, unbilled care, and agency claims where the agency does not permit assignment
- Underwritten
- In-house by Naptime Capital
Who is invoice factoring actually for?
Factoring is a B2B product, so it does not apply to a center collecting tuition from families. It applies to the part of child care that invoices an organization.
- Employer-sponsored and on-site centers billing the employer for slots, subsidized seats or backup-care days on net-30 or net-45.
- Before- and after-school providers contracted by school districts or charter networks and paid on the district’s invoice cycle.
- Backup-care and corporate benefit platforms that pay the provider after the care month closes.
- Enrichment, tutoring and camp operators running programs for a municipality, a parks department or a school on contract.
- Early intervention and therapy providers billing an agency, a hospital system or a managed-care organization for services delivered.
- Multi-site operators with a mix of private tuition and institutional contracts, who factor the contract side and leave the tuition side alone.
If you run a tuition-funded center and you got here looking for cash flow, the product you want is working capital or a line of credit. Parent tuition cannot be factored.
How does invoice factoring work, step by step?
- Deliver the care and invoice your customer. The contract month closes, the program runs, the backup-care days are used. You bill as you always have, on your terms.
- Upload the invoice. Once the facility is open, you submit invoices as you raise them. There is no re-application per invoice.
- Up to 90% is advanced within 24 hours. The advance lands in your operating account against the approved face value of the invoice.
- Your customer pays, and you get the reserve less the fee. The remaining balance is released when the obligor settles.
A facility opens in 3 to 5 business days. After that, each invoice funds in 24 hours. Many operators run a factoring facility alongside working capital — they are complementary, not competing.
What does it cost to factor a contract invoice?
An after-school provider invoices a school district $60,000 for a program month on net-45 terms. We advance 90% within 24 hours of invoice approval, and release the rest, less the fee, when the district pays.
Illustrative only. Your actual amount, cost and term are set by underwriting your file. Nothing on this page is an offer.
Representative invoice — $60,000 on net-45
- Invoice
- $60,000
- Advance (90%), within 24 hours
- $54,000
- Fee
- 2.5% per 30 days — illustrative
- Fee at 45 days
- $2,250
- Released when the district pays
- $3,750 ($6,000 reserve less the fee)
- Status
- An illustration, not an offer
Factoring questions, answered.
Does my customer know I am factoring?
On a notification facility, yes — they remit to a lockbox in your name. Non-notification facilities exist for larger accounts; ask when you apply and we will tell you which structure your receivables support.
What if my customer doesn’t pay?
On a recourse facility, the invoice comes back to you and you repay the advance or substitute another invoice. On a non-recourse facility, Naptime Capital carries the credit risk of the obligor’s insolvency, which is priced accordingly. Both structures are available.
Can I factor parent tuition?
No. Tuition paid by families is consumer revenue, not a B2B receivable, and cannot be factored. Smoothing tuition timing is a working capital advance or a line of credit, which are different products with different criteria.
Can I factor state subsidy reimbursements?
Sometimes. Whether a claim to a state or county agency can be assigned depends on that agency’s rules, which vary by state. Send us a recent remittance and we will tell you in a day whether the facility can include them. Where it cannot, a line of credit covers the same gap.
Is there a minimum volume to open a facility?
$20,000 in open, invoiced B2B receivables and 3 months in business. Facilities run from $10,000 up to $5,000,000, so a single after-school provider with two district contracts can open one.
What does it cost to factor a $60,000 contract invoice?
On a $60,000 employer or district invoice on net-45, we advance $54,000 (90%) within 24 hours. At an illustrative 2.5% per 30 days, the fee for 45 days is $2,250, and the remaining $3,750 is released when your customer pays. Your rate is set by your customer’s credit and your volume; this is an illustration, not an offer.
Your invoices are good. The timing isn’t.
Facilities $10,000 to $5,000,000, up to 90% advanced within 24 hours of invoice approval, no minimum credit score. A facility opens in 3 to 5 business days.