A line that’s there on payroll Friday because you opened it in October.
Naptime Capital opens child care lines of credit from $25,000 to $500,000, with draws repaid over 6 to 24 months, a 600 minimum FICO, 12 months in business, and $25,000 a month in deposits — tuition and subsidy both counted. You pay only on what you draw. Funded in 1 to 3 business days, and same-day on draws once the line is open.
What are the criteria?
Line of credit — criteria
- Line size
- $25,000 – $500,000
- Draw repayment
- 6 – 24 months per draw
- Minimum credit score
- 600
- Minimum time in business
- 12 months
- Minimum monthly deposits
- $25,000 — tuition, subsidy and voucher deposits all count
- Documents
- Application + 3 months of business bank statements
- Cost
- Charged only on the drawn balance. No cost on an unused line.
- Draw speed
- Same business day once the line is open
- Maintenance fee
- None
- Line review
- Every 6 months; lines grow with deposit history
- Initial setup
- 1 – 3 business days
- Underwritten
- In-house by Naptime Capital
Why is a line the right product for a subsidy-funded center?
A working capital advance is a single event: you take the money, you repay it, it’s done. A line is a tool you keep. Open it in a strong month, when the statements look their best and underwriting is easiest, then draw against it the week the reimbursement doesn’t show up.
That ordering matters more in child care than almost anywhere else, because the lag is structural. Attendance is submitted after the month closes, the claim is processed, the payment cycle runs. It is not a one-time problem, so a one-time product is the wrong shape. The worst time to go looking for capital is the Thursday before payroll with a light statement in hand.
Open the line in a full-enrollment month.
An unused line costs nothing. There is no maintenance fee and no cost on an undrawn balance. You are charged only on what you actually draw.
Lines are reviewed every 6 months and grow with deposit history. Once the line is open, a draw lands the same business day.
Already carrying an advance and need recurring access instead? Working capital funds faster with no credit minimum, and a term loan is the consolidation path. Call and we will tell you which one fits before you apply.
What do child care centers draw a line of credit for?
| Draw | Repaid from |
|---|---|
| Payroll in the week a subsidy or voucher reimbursement runs late | The reimbursement, when it posts |
| August hiring and onboarding ahead of fall enrollment | September and October tuition |
| Summer rent and salaried staff in a school-year-only program | Fall enrollment |
| Curriculum, furniture and supplies for a new classroom before it fills | Tuition from the new room |
| A licensing-renewal item that has to be done before the inspection date | Ongoing deposits over 6 to 24 months |
If your draws are always against invoices an employer, school district or agency hasn’t paid yet, compare invoice factoring — it is usually cheaper for that exact pattern.
What a child care center needs to qualify.
Every number below is a real criterion. If you clear these, apply. If you don’t, call us and we’ll tell you what would change it.
| Minimum monthly revenue | $15,000 in business bank deposits — tuition, subsidy and voucher deposits all count |
|---|---|
| Minimum time in business | 6 months |
| Minimum credit score | None for working capital or factoring. 600+ for a line of credit. 650+ for a term loan. 680+ for SBA. |
| Funding range | $10,000 to $2,000,000 for working capital. Up to $5,000,000 for term loans, SBA, and factoring facilities. |
| Time to a real offer | About 4 business hours on a complete file. |
| Time to funding | 24 hours. Same day if a clean file is signed before 11:00 AM ET. |
| Documents required | Application plus your 3 most recent months of business bank statements. 4 months if your program is seasonal (camps, school-year-only programs). |
| Contract length | 2 pages. |
| Repayment | Fixed daily or weekly ACH from your operating account. No split funding. No holdback percentage. No lockbox. |
| Prepayment discount | Up to 30% off the remaining cost of funding when a working capital advance is paid off within the first 30, 60, or 90 days. |
| Subsidy & voucher income | Counted. State subsidy reimbursements, voucher payments, food-program reimbursements and private tuition are all deposits, and we underwrite deposits. |
| Tuition software requirement | None. Whichever billing or attendance system you run, or paper and checks — underwriting reads the bank statements, not the software. |
| Program types approved | Licensed child care centers, preschools and pre-K, infant and toddler programs, home-based and family child care, Montessori and specialty schools, after-school programs, summer and day camps, faith-based centers, franchise centers, multi-site operators, drop-in and hourly care, early intervention and special-needs programs, enrichment and tutoring centers, employer-sponsored and on-site centers. |
| Not required | Collateral for working capital. A business plan. Tax returns under $500,000. A minimum enrollment count. A minimum number of locations. A pending license upgrade to be complete. |
| Open to | U.S. businesses with a U.S. business bank account. All 50 states. |
Four minutes. Three bank statements. No credit impact to apply.
Line of credit questions, answered.
What does an unused line cost?
Nothing. There is no maintenance fee and no cost on an undrawn balance. Naptime Capital charges only on what you actually draw, which is why directors open the line in a strong month and leave it sitting until the agency is late.
How fast is a draw?
Same business day once the line is open. Opening the line itself takes 1 to 3 business days on a complete file.
Can I draw to cover payroll while I wait on a subsidy reimbursement?
That is the main thing a child care line is for. Draw on Thursday to make Friday payroll, repay the draw when the agency deposit posts, and the line is available again for the next cycle.
Can the line grow?
Yes. Lines are reviewed every 6 months and grow with deposit history. A center that opens at $50,000 and runs clean through a school year routinely comes up at review, which matters if you are adding a classroom.
Is a child care line of credit secured?
It carries a UCC-1 filing and a personal guarantee. It is not secured by specific collateral and does not touch your license.
Open it in your full month. Draw in your late one.
$25,000 to $500,000, 600+ FICO, 12 months in business. Pay only on what you draw, and nothing at all on an unused line.