Childcare programs collect tuition on a schedule, while rent, payroll, food and facility costs run every week. Enrollment can change with the school year, and a required repair or classroom update does not wait for the next tuition cycle. Licensed daycare centers, preschool programs and related childcare businesses use a merchant cash advance as working capital for facilities, staffing and enrollment growth. This page is not licensing or regulatory advice.
Need merchant cash advance funding of $25K to $5M for your business?
How Daycare Use a Merchant Cash Advance
Updating classrooms, playgrounds or safety equipment
Covering payroll and operating costs through an enrollment dip
Buying furniture, curriculum materials or kitchen equipment
Preparing a new room or location before new families start
Making repairs needed to keep the facility in good working order
Supporting transportation or other parent-facing services the program already offers
Cash Flow in This Business
Tuition, subsidies and other deposits may arrive on different days of the month. That can leave a gap when a repair, hiring need or seasonal enrollment change appears. Funders review deposits into the business account over time. A short explanation of your tuition cycle, closures and any one-time deposits helps a reviewer read the statements clearly.
How a Merchant Cash Advance Works
A merchant cash advance is a purchase of a portion of your future receivables. A funder provides a lump sum, typically between $25,000 and $5,000,000, and collects an agreed share of your future business revenue as described in the written agreement. Because the funder is buying future revenue, reviews focus on how your business performs, not only on your credit history. Every offer comes from the funder and is spelled out before you sign. Forward Funders is a broker, not a lender or direct funder; we help you compare options.
Illustrative scenario: opening an additional classroom
This is a hypothetical, illustrative example, not a client result, testimonial, or offer. A center has a waitlist and a vacant room that needs furniture, safety updates and a new teacher before families can start. The owner prepares business bank statements and a brief note about the planned room, then submits a Funding Application. Whether funding is offered, and on what terms, would be decided by a funder after its own review.
What Funders Look At
Funders typically review recent business bank statements, time in business and deposit consistency. They may ask basic business questions. We do not review licensing files here, collect children’s records or promise that a program will be accepted. Each funder makes its own decision.
Our Process in 3 Steps
Apply online. Complete our short Funding Application and attach recent business bank statements.
Compare offers. We present your daycare or childcare business to funders in our network and walk you through the offers that come back.
Review and decide. Once you accept an offer and the funder completes its review, funding follows the funder's own process and timing. Timing is not guaranteed.
Why Forward Funders
Forward Funders LLC is a broker, not a direct funder. We shop your file to multiple funders so you can compare options side by side instead of applying one at a time. We work with childcare-business owners nationwide. Call (718) 619-9867 or visit our Apply page to get started.
Frequently Asked Questions
Is this a grant or a government program?
No. A merchant cash advance is a purchase of future receivables offered by a funder. Forward Funders is a broker that shops your file to funders.
Do you work with centers nationwide?
Yes. We work with childcare businesses in all 50 states.
Can funds be used for facility updates?
Working capital is often used for rooms, equipment and related operating needs. The written agreement from the funder governs the offer.
What if enrollment is seasonal?
Explain the school-year pattern when you apply. Several months of statements help show the cycle. Seasonality alone is not described here as a yes or no factor.
Will you need information about the children in the program?
No. Funders review business bank statements and basic business details, not student or family records.
Prepare your application
Start with a completed Funding Application and your last four months of business bank statements. Month-to-date activity is only needed after the 10th of the month (from the 11th onward). That short list is a starting point, not a promise that every funder asks for the same items. See Your Funding Application: What to Send and Your Merchant Cash Advance Application Journey. You can also begin on our Apply page.
Related information: the Apply page.
More on our home page · States We Serve · Apply page
Forward Funders LLC is a broker, not a funder. Merchant cash advances are purchases of future receivables; approval is not guaranteed and terms come from the funder.
Forward Funders LLC · 6231 Amboy Rd., Staten Island, NY · (718) 619-9867