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7 Replies Last post: Apr 19, 2009 5:57 PM by consultingbob

Are there investors interested in Child Care?

Aug 20, 2009 10:04 PM

Click to view ChildCareWhiz's profile Professional ChildCareWhiz 2 posts since
Aug 20, 2009
I have earned and saved most of the funds I needed to eventually turn my home based child care business. However the owner of an established child care facility, who knows my reputation for providing excellent childcare, has approached me about purchasing their existing facility. I have horrible credit and am still paying on student loans. What are my options for a small loan? I have no collateral or cosigner and understand I will need to pay a high interest rate.
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Click to view MoveForward's profile Mogul MoveForward 148 posts since
Aug 13, 2009
1. Re: Are there investors interested in Child Care? Aug 21, 2009 5:38 AM
in response to: ChildCareWhiz

Wow you have the best possible advantage...the owners of the establishment for which you want know you and trust you, now use this to your advantage. Let them know that you are interested in taking over their establishment. Also remind them that in this economy you are not going to be able to secure a loan...

however can the established owners consider becoming your "owner finacing". If they are honest with you and the establishment is making money then they will feel comfortable with you making monthly payments for a length of time. PLUS they now know your reputation and know this establishment will only grown and thrive, securing the monthly payments. Do not tell them your credit is bad (sounds like other bills will stand in your way), do not tell them you have no collateral.

This would be a win/win situation. The establishment will find anyone trying to secure a loan right now good or bad credit is few and far between. The establishment is going to find out it will take many many months for anyone to step up and want to take this over (there are not so many angels who understand the need to take of children daily, let alone a full facility business).

I would not allow them to charge you a large interest rate, work the price out to satisify all and then begin payments.

I would suggest checking with the Better Bus. Bureu to make sure their business name is clear.

Find out what outstanding agreements you are locked into and the rates (yellow pages, phone, advertising, etc) and make sure this is all clear within the agreement so no hidden monthly charges pop-up.

Luckiest is on this forum he can help you with a business plan he is with SCORE (great group for you to rely on for mentoring), I also get the newsletter via email you may want to sign up for this.

Best to you

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Click to view LUCKIEST's profile SCORE LUCKIEST 7,942 posts since
Aug 6, 2007
2. Re: Are there investors interested in Child Care? Aug 21, 2009 9:25 AM
in response to: ChildCareWhiz
Are there investors interested in Child Care?

YES
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Click to view baby.love's profile Start-up baby.love 1 posts since
Aug 21, 2009
3. Re: Are there investors interested in Child Care? Aug 24, 2009 8:55 PM
in response to: MoveForward
hey,

as luckiest said, there are people interested in child care as they are our future. also, movefarward is right, and u seem to be in a 'win/ win' situation and both, u and the owners can come to the best deal as they want to leave, if they approached u, and u because u want it so, u just hv to talk it over

good luck,
b
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