http://www.veritasfinancial.co.uk

Finance to fund your children’s day

nursery

July 1, 2016

INDEX

1 Starting a childrens day nursery

2 Before you apply for finance

3 Applying for business finance

4 What lenders will look for

5 Types of loans and finance you can apply for

Finance can help you grow your childrens day nursery and childminding business

Starting up a new day nursery business isn’t easy but we can help you raise the finance you

need to buy all the fixtures and fittings.

We can also fund other costs that you will incur when starting a childminding business or

children’s day nursery.

There are certain regulations involved in child care and before you start, you will need to be

registered with the local authority and ensure you have followed the relevant health and

safety advice.

Starting a childrens day nursery

Lots of new businesses are in the awkward position of needing finance to get their business

up and running but not having any sort of business track record to prove to lenders that they

would be a viable risk to lend to.

This is a pretty common situation for new businesses and one that we come across time and

again when people apply to us for funding.

So we have created a simple guide on how to find funding for your nursery business, creche

or playgroup.

http://www.veritasfinancial.co.uk

Before you apply for finance

Ensure you have a properly prepared and professionally written business plan. Writing a

business plan isn’t as difficult as people think and it is simply a way of showing prospective

lenders and investors what you expect to earn in revenue and what you expect to pay out in

fixed costs such as rent, rates, wages and other bills.

The business plan should also state why you think your children stay nursery will succeed

and what you think makes your business stand out from the others around you. Ensure you

check out all the nurseries and childcare providers in the local area also look mother and

toddler groups to be certain why you are different.

Always ensure your cash flow forecasts are accurate, truthful and a true reflection of how you

see your income and expenditure working out.

Applying for business finance

We deal with over 70 different alternative finance lenders and even though you’re pretty

much guaranteed to find some form of finance with ourselves, we would always ask you to

explore all of the options available to you such as regional grant funding, angel investment

and most importantly of all, your bank.

However in 9 cases out of 10, your bank will simply refuse to finance your business and if

you are a brand-new start-up business, then your chances of receiving a loan or other type of

funding package from your bank, are nil.

What lenders will look for

The best way of thinking about this is to put yourselves in the shoes of a lender. They will

only lend to a business if they have a high degree of confidence that you will repay the loan.

Regardless of what rate you will pay or how much you borrow, lenders will only lend money

on the basis that they will get their money back.

Simple really.

So when you make your application and submit your business plan, ensure that if you are

asked questions about your business that you know your numbers inside out. Not only must

you be completely familiar with your profit and loss projections, you must also be considered

an expert in what you do, after all, why would anyone willing to a business that does not

know what they are doing.

Types of loans and finance you can apply for

Whether you need to buy equipment such as toys and games for your children day nursery or

you need finance to pay for alterations and refurbishments to your premises, your loan

options are vast.

http://www.veritasfinancial.co.uk

An unsecured business loan can provide finance of up to £250,000 and be processed and paid

out the same day you apply for the loan. Loans above £250,000, usually take up to 48 hours

to be paid out.

As your nursery is a relatively new business start-up, an unsecured loan would be your best

option, otherwise you will have to apply for a secured loan and that would mean offering

your house as security on the loan.

This means that if you’re nursery closes down and the business fails, the lender could

repossess your house in lieu of the debt.

The final thing to think about is a personal guarantee (PG). Many lenders will require

businesses to offer a PG as this guarantees that if you applied for a loan in the name of your

limited company, instead of being able to walk away from the debt (as you can when you

borrow under limited company status), the lender will be able to come after you (and your

house) personally to reclaim their money.

For a free, no obligation quote, click here to send us an enquiry and we will do our very best

to find you a loan that will allow you to realise your dream of running a childrens nursery.