| Startup costs are generally quite reasonable in the | | | | gaining access to financing by having a solid |
| daycare industry, particularly for entrepreneurs | | | | business plan and having a good account history |
| who set up a home-based business. However | | | | with the bank in question. When you apply you |
| some investment is required if you are to get set | | | | should show a willingness to fund at least part of |
| up properly, get licensed, buy proper equipment | | | | the startup costs yourself and you should have |
| and pay for initial branding and marketing costs. In | | | | some assets that you can use as collateral to |
| this article we examine the various options that | | | | assure the bank that the loan will be repaid. |
| are available for funding or financing a child care | | | | It is possible to get small business loans from |
| service. | | | | government agencies with favorable repayment |
| If at all possible you should try to fund the | | | | terms. There are also small business grants that |
| startup costs yourself or possibly through a small | | | | don't have to be repaid at all. The problem though |
| loan from friends or family. You may need access | | | | is that while these opportunities are limited, the |
| to credit some time during the first year of your | | | | applicants chasing them are numerous. To stand |
| businesses life if it doesn't grow as quickly as you | | | | the best chance your business plan and application |
| estimated so you shouldn't exhaust your credit | | | | have to really standout as being worthy of |
| options too soon. | | | | funding. Being able to demonstrate how your |
| If you really do not have sufficient funds to get | | | | business will benefit the community in a positive |
| set up in business then the next option is to look | | | | way will strengthen your case. |
| for an investor. Ask around and you may find | | | | Some small business owners, who simply cannot |
| somebody who is willing to invest in your daycare | | | | get access to financing from any of the above |
| in return for a percentage of ownership and | | | | options resort to using a variety of credit cards |
| possibly some influence in the running of the | | | | to get funds through cash advances. High interest |
| business. Venture capital firms can connect you | | | | rates make this approach very risky and you |
| with investors but they are not usually interested | | | | really have to be 100% certain that you will be |
| in small businesses so you may have to use your | | | | able to start making repayments within two or |
| own social or business networks to find someone | | | | three months before trying this approach. |
| suitable. | | | | Whatever way you go about funding your |
| The next option is to consider a small business | | | | daycare business, make sure that every dollar |
| loan from a commercial bank. Banks offer a | | | | has a purpose and that you are putting these |
| variety of financing options for small business with | | | | funds to use in a way that allows your child care |
| varying interest rates and schedules for | | | | business to flourish and give you a good return on |
| repayment. You can increase your chances of | | | | your investment. |