Child care working capital, funded in 24 hours.
Naptime Capital funds child care working capital from $10,000 to $2,000,000 over 3 to 18 months, with no minimum credit score, $15,000 a month in bank deposits, and 6 months in business. Tuition and subsidy deposits both count. Offer in about four business hours. Money in 24. Repayment is a fixed daily or weekly ACH out of your operating account — never a percentage of your tuition.
What are the criteria?
Working capital — criteria
- Amount
- $10,000 – $2,000,000
- Term
- 3 – 18 months
- Sized against
- Monthly bank deposits — tuition, subsidy, voucher and food-program reimbursements all count
- Minimum credit score
- None
- Minimum time in business
- 6 months
- Minimum monthly deposits
- $15,000
- Documents
- Application + 3 months of business bank statements (4 months if seasonal)
- Repayment
- Fixed daily (Mon–Fri) or weekly ACH. No split funding, no holdback.
- Collateral
- None. Personal guarantee required.
- Prepayment discount
- Up to 30% of the remaining cost of funding at 30, 60, or 90 days
- Offer
- ~4 business hours · Funding 24 hours
- Underwritten
- In-house by Naptime Capital
Figures on this page are representative, not an offer. See disclosures.
What do child care centers actually use working capital for?
Payroll while subsidy or voucher reimbursements run late
The care is delivered, the attendance is submitted, and the agency pays on its cycle, not yours. Two payrolls go out before the claim posts. Repaid out of the reimbursement when it lands.
Most common request · short terms, 3 to 6 monthsStaffing up for fall enrollment
You hire and onboard in August to meet ratios for September’s classrooms, weeks before the first full month of tuition clears. Repaid out of fall tuition.
Seasonal · 6 to 12 monthsA repair that closes a classroom until it is fixed
HVAC in July, a boiler in January, a roof leak over the infant room, a van that failed inspection. The jobs that drop your licensed capacity until they are paid for.
Funded same day on a clean file signed before 11:00 AM ETA licensing or inspection item with a deadline
Fencing, fire-safety work, a bathroom retrofit, a sprinkler item flagged at renewal. The inspector’s date is not negotiable and does not care what December looked like.
Short terms · 3 to 9 monthsTuition seasonality in a school-year program
After-school and pre-K programs with a soft June through August cover summer rent and salaried staff before enrollment returns. If this repeats every year, a line of credit is the cheaper structure.
Seasonal · 6 to 12 monthsBridging an employer or district contract
Staff and supplies go out before the net-45 invoice is paid. If this is a pattern rather than a one-off, ask about factoring instead.
Compare against factoring before you signWhat does a working capital advance cost?
A working capital advance is priced as a fixed total payback, not an interest rate. You will see three numbers before you sign: the amount funded, the total you repay, and the payment.
Pay it off inside the first 90 days and you keep up to 30% of the remaining cost. Pay it off inside the first 30 and the discount is at its largest. Your actual numbers depend on underwriting your statements. Nothing on this page is an offer.
Representative file — $150,000 over 12 months
- Amount funded
- $150,000
- Total payback
- $190,500
- Cost of funding
- $40,500
- Daily payment
- $756 across 21 business days per month
- Weekly payment
- $3,664
- Paid off in the first 30 days
- You keep up to $12,150 of the remaining cost
- Status
- An illustration, not an offer
How do you read a child care center’s bank statements?
We’re looking at five things, and it helps to know them before you send.
- Average daily balance. More important than your top line. A center that never dips close to zero between reimbursement cycles is a stronger file than one with bigger deposits that lives at zero the week before the agency pays.
- Deposit mix and rhythm. Weekly or monthly tuition drafts, one or two large agency deposits a month, a food-program reimbursement — that pattern reads as a working center. All of it counts.
- NSFs. A few in 90 days, clustered in the week before a reimbursement posted, is a timing story we understand. A steady stream of them is not.
- Your floor, not your average. We size the payment against your slowest month in the window, which is why seasonal programs should send four months, not three.
- Existing positions. If you have advances out, tell us up front. We’d rather structure around them than discover them — often with a term loan consolidation.
Daily or weekly?
Weekly
Suits a center whose deposits land in a few large chunks — a monthly tuition draft on the 1st and an agency payment mid-month — one debit a week against a week of balance.
Common for subsidy-heavy centers and school-year programs.
Daily
Suits a center with steady weekly tuition drafts and even balances, Monday through Friday, and usually prices better than weekly for the same file.
Debits run on business days only. Weekends and bank holidays are skipped.
Ask for the one that matches your deposit rhythm. You pick at signing, not after. If the payment stops working later, call us and we re-term it — see responsible funding practice.
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.
Working capital questions, answered.
Is a working capital advance a loan?
No. It is the purchase of a fixed amount of future receivables at a discount. There is no APR, no compounding, and no maturity-date balloon. You repay a fixed total amount through fixed daily or weekly ACH debits. See disclosures for the full description.
Can I get working capital for my daycare with a 520 FICO?
Yes. Naptime Capital has no minimum credit score on working capital. We underwrite your business bank statements — average daily balance, deposit count, NSF pattern and your slowest month. Credit is reviewed but it is not a cutoff.
How much will I be approved for?
The approval is sized against your monthly bank deposits — tuition, subsidy, voucher and food-program reimbursements all included — and against your slowest month in the statement window, so the payment survives a holiday-week dip. The range is $10,000 to $2,000,000.
Will a late subsidy reimbursement count against me?
No. A month where the agency paid late shows up as a low-deposit month followed by a catch-up month. We see that pattern constantly on child care files and read it as timing, not as lost revenue. Tell us about it up front and send four months of statements if one of them is light.
Will you take a second position?
We prefer to be first. If you have an open advance we will look at a consolidation or a re-term rather than stacking on top of you. Call before you take another position — the earlier you call, the more structure is available.
Do you take a percentage of tuition?
No. There is no split of your tuition processor, no holdback percentage, and no lockbox on your subsidy deposits. Repayment is a fixed daily or weekly ACH out of your operating account, so every tuition and agency deposit lands in full.
How early can I pay it off?
Any time. A working capital advance paid off within the first 30, 60, or 90 days qualifies for a prepayment discount of up to 30% of the remaining cost of funding. If the reimbursement lands early and you want to clear the balance, the discount is stated in your two-page contract.
No minimum FICO. $15,000 a month. Six months open.
If you clear those three lines, you qualify to apply. Four minutes and three bank statements gets you a real number in about four business hours.