A Johns Creek, GA child care owner adding a second location can use a term loan for the lease deposit and other one-time costs, equipment financing for a passenger van, classroom tablets and kitchen and laundry machines, and a working capital loan for teacher payroll while the new classrooms enroll. Meadowmoor Commercial Capital hands each part of the request to funding partners.
A term loan carries one-time setup costs for a second location, equipment financing carries the van, tablets and machines, and working capital carries teacher payroll until tuition at the new site covers it. Building work, outdoor play structures and the property itself stay outside this site. The figures are invented.
Daycare loans with fixed payments for a second location in Johns Creek, GA
An operating program that adds a second location takes on costs that come once: the security deposit on the lease, rent before tuition at the new site starts, recruiting and training teachers, enrollment software and the first round of classroom supplies. A term loan pays for them up front and spreads them over fixed monthly payments. Work on the building is not part of it: walls, restrooms, plumbing, a kitchen, outdoor play structures and other site work are property work outside this site, as is buying the property.
Illustration only, invented figures: a $22,000 deposit, $17,000 of rent before tuition starts, $14,000 for recruiting and training, $6,000 for software and setup and $9,000 of supplies come to $68,000. Borrowed over 60 months at 10.25%, that sum costs $1,453.18 a month; the full schedule comes to $87,190.80, and $19,190.80 of it is interest.
In Fulton County, GA, child day care services had 352 employer establishments and 6,275 paid employees in 2023 (County Business Patterns), and 85 of those establishments (24.1%) had fewer than five employees. ZIP 30097 had 15 child day care services establishments that year, according to ZIP Code Business Patterns.
Daycare center financing to equip the second site: a passenger van, tablets and kitchen and laundry machines
A passenger van is a work vehicle for a child care program, and it can be financed as equipment, like classroom tablets, a commercial dishwasher, a washer and dryer and security camera kits. Each item stands behind its own payments, and the term can follow how long the item lasts. Cribs, cots, classroom tables and chairs and cubbies are furniture and stay outside this site, and so do the water and power hookups for the machines. The daycare center financing page goes further into tablets, kitchen equipment and camera kits.
Illustration only, invented figures: put a $52,000 passenger van on a five-year schedule at 9.25% a year and each of the 60 payments is $1,085.75. 12 classroom tablets at $410 each plus $18,600 for a commercial dishwasher, a washer and dryer and a two-door refrigerator make $23,520, which over 48 months at the same 9.25% runs $588.09 a month. Together the two are $1,673.84 a month until the tablets and machines are paid off in month 48.
The equipment financing page compares a loan with an equipment finance agreement for a passenger van, which is worth reading before choosing one.
Daycare business loans for teacher payroll while the new site enrolls
Teachers at a new location are paid from the first day their classrooms are open, while tuition there builds as families enroll. A working capital loan can carry that payroll until tuition at the new site covers it, so the first location's cash is not drained to pay the second one's staff.
Illustration only, invented figures: the new site has $11,800 of biweekly teacher payroll, and the owner plans for 75 days before tuition there covers it. Whether 5 or 6 biweekly paydays land inside those 75 days hangs on the date of the first one, so the gap is $59,000 to $70,800 of payroll.
The higher figure is the safer basis for sizing the loan, since a payday that falls early in the stretch adds a full payroll.
Buying an existing child care program in Johns Creek, GA: records to gather first
Buying a program that already runs is the other way to a second location. The purchase covers the business: equipment, vans, enrollment and the name families know. If the building is offered with it, the building is a real estate purchase and outside this site. Records a buyer can gather from the seller first:
- Tuition receipts by month for at least the last year
- Enrollment by classroom and age group, without family names
- The staff roster with pay rates and start dates
- The site lease, read for what it says about a change of owner
- A list of vans and equipment with their ages
- Tax returns, profit and loss statements, and any loans or leases still open
Other articles on the Meadowmoor blog cover practice purchases, nail salons and credit lines for firms.
By Meadowmoor Commercial Capital · Updated
