Five ways to fund a center. Here’s which one fits.
Naptime Capital offers five funding products to child care centers, preschools and daycares: working capital ($10K–$2M, 24 hours, no minimum FICO), a line of credit ($25K–$500K, 600+), invoice factoring ($10K–$5M), term loans ($50K–$5M, 650+), and SBA 7(a) ($50K–$5M, 680+). The fastest money costs the most. The cheapest money takes the longest. Below is the whole trade-off in one table, with no form in the way.
What does each child care funding product cost in time and credit?
| Product | Amount | Term | Speed | Min FICO | Min time in business | Min monthly deposits | Who underwrites |
|---|---|---|---|---|---|---|---|
| Working capital advance | $10K – $2M | 3–18 months | 24 hours | None | 6 months | $15,000 | Naptime, in-house |
| Line of credit | $25K – $500K | Revolving, 6–24 month draws | 1–3 business days | 600 | 12 months | $25,000 | Naptime, in-house |
| Invoice factoring | $10K – $5M facility | Per invoice, 30–90 days | 3–5 days to open, 24 hours per invoice after | None | 3 months | $20,000 in receivables | Naptime, in-house |
| Term loan | $50K – $5M | 6–60 months | 3–7 business days | 650 | 24 months | $40,000 | Naptime in-house to $500K; bank partners above |
| SBA 7(a) / SBA Express | $50K – $5M | Up to 10 years working capital, 25 years real estate | SBA Express 10–21 days; 7(a) 30–45 days | 680 | 24 months | — | SBA-preferred bank partners, packaged by Naptime |
Naptime Capital underwrites and funds working capital, lines of credit and factoring in-house. SBA 7(a), SBA Express and term loans above $500,000 are packaged by Naptime and placed with bank and SBA-preferred lending partners. See disclosures.
Working capital
In‑houseNo minimum FICO, 6 months in business, $15,000/month in deposits. 3–18 months, fixed daily or weekly ACH.
Working capital →Line of credit
In‑house600+ FICO, 12 months in business, $25,000/month. Pay only on what you draw. No cost on an unused line.
Line of credit →Invoice factoring
In‑houseNo minimum FICO — your customer’s credit is underwritten. Up to 90% advanced within 24 hours of invoice approval.
Invoice factoring →Term loans
Bank partners650+ FICO, 24 months in business, $40,000/month. 6–60 months, fully amortizing. In-house to $500,000.
Term loans →SBA loans
SBA partners680+ FICO, 24 months in business, 10% down. Up to 10 years working capital, 25 years real estate.
SBA loans →Which product should I use for what I’m doing?
Find the row that matches the job in front of you. The product column is where we would start the conversation; the underwriter confirms it off your statements.
| What you’re doing | Product range | Best product | Why |
|---|---|---|---|
| Payroll while a subsidy or voucher reimbursement runs late | $10K – $2M | Working capital | Speed matters more than cost; it is repaid out of the reimbursement when it posts. |
| The reimbursement is late every cycle | $25K – $500K | Line of credit | Open it once, draw when the agency is late, repay when it pays, pay nothing while it sits. |
| Hiring for fall enrollment before the first full tuition month | $10K – $2M | Working capital | A short term that ends when September and October tuition has cleared. |
| The HVAC, the roof or the van failed and the inspector is coming | $10K – $2M | Working capital | Get it fixed before the next licensing visit. |
| Adding a classroom and raising licensed capacity | $50K – $5M | Term loan | Match the term to the years the room will generate tuition. |
| Playground, fencing or safety upgrades required at licensing | $50K – $5M | Term loan | Monthly payment on a multi-year asset, not a daily one. |
| Opening a second center | $50K – $5M | Term loan, or SBA 7(a) if you have 90 days | SBA is the cheapest capital a center can get if you can wait. |
| Buying the building you operate in | $50K – $5M | SBA 7(a) | Up to 25 years on owner-occupied real estate. |
| Employer, district or agency contracts paid on net-30 to net-90 | $10K – $5M facility | Invoice factoring | You’re not short on enrollment, you’re short on timing. |
| Three advances you can’t carry | $50K – $5M | Term loan consolidation | One payment, longer term. Call before taking a fourth position. |
| Franchise fee + build-out for a new unit | $50K – $5M | SBA 7(a) | Many national child care franchise brands are on the SBA Franchise Directory. |
How fast does each one actually move?
- 24 hoursWorking capital advance
- 1–3 daysLine of credit
- 3–5 daysFactoring facility to open, then 24h per invoice
- 3–7 daysTerm loan decision
- 10–21 daysSBA Express
- 30–45 daysStandard SBA 7(a)
Timelines describe typical outcomes on complete files during business days, Monday to Friday, 9:00 AM to 7:00 PM ET. Holidays, incomplete files and third-party response times extend any timeline.
Four minutes to apply. Twenty-four hours to fund.
Send us four minutes and three statements
Center details, EIN, monthly deposits, what the money is for, and your three most recent months of business bank statements. Four if you’re seasonal. No tax returns under $500,000.
An underwriter reads your file
Every file is read by a person, not a score. Tuition, subsidy and voucher deposits all count. We look at average daily balance, deposit count, NSF pattern and your slowest month. Offer in about four business hours during the week.
Sign two pages and get funded
You see the amount, the payback, the payment and the schedule before you sign anything. A clean file signed before 11:00 AM ET generally funds the same day; otherwise next business day.
One application covers all five products. Not sure which fits? Call an underwriter or read the guides — none of them are gated.
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.
Picking between the five.
What’s the cheapest way to fund a child care center?
An SBA 7(a) loan is the lowest cost of capital available to a center — up to 10 years on working capital and 25 years on owner-occupied real estate, with 10% down. It requires 680+ credit, 24 months in business, filed tax returns, and 30 to 45 days. An in-house term loan is the next cheapest at 650+ credit and 3 to 7 business days.
What’s the fastest way to fund a daycare?
A working capital advance. Naptime Capital gives an offer in about four business hours on a complete file and funds in 24 hours, with no minimum credit score, $15,000 a month in deposits, and 6 months in business. A clean file signed before 11:00 AM ET generally funds the same day.
Which product fits a late subsidy reimbursement?
If it happens once, working capital — it funds in 24 hours and is sized to be repaid out of the reimbursement when it lands. If it happens every cycle, a line of credit — you open it once in a strong month and draw only when the agency is late, paying nothing on the line while it sits unused.
Can I have more than one product at a time?
Yes for complementary products. A factoring facility for employer or district contracts commonly runs alongside a working capital advance. A second working capital position does not — if you already have an advance out, we will look at a consolidation or a re-term rather than stacking on top of you.
Does applying hurt my credit?
No. Submitting the application does not affect your credit. Naptime Capital reviews your business bank statements first. On a credit-qualified product — a line of credit, a term loan, or SBA — a credit pull happens only when you move forward, and we tell you before it does.
Which of these does Naptime fund itself?
Naptime Capital underwrites and funds working capital advances, lines of credit, and factoring facilities in-house from its own capital. SBA 7(a), SBA Express, and term loans above $500,000 are packaged by Naptime and placed with bank and SBA-preferred lending partners.
One application covers all five.
$10,000 to $2,000,000. No minimum FICO for working capital. Four minutes to apply, and checking your options does not affect your credit.