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    2 Replies Latest reply on Dec 15, 2008 8:26 PM by jamie.14_

    Childcare financing?  Answering Luckiest...

    jamie.14_ Wayfarer

      Hello,

      I am looking for financing for a childcare business located in North Canton, Ohio. I cannot get financing from a bank because I have no collateral. I have worked in the childcare feild for the past nine years. I started as a preschool teacher, then an administrator, then director. I know all the ins and outs of the business. I've seen the past tax returns for this business and I also took everything to an idependent accountant to get another opinion. Everything looks very good. I'm trying to write a business plan and I can get it out to anyone interested in possilby lending or investing. They made $80,000 last year and I'm planning on expanding the programs. The asking price is $100,000. I have no money at all to put down, but I am willing to pay a high interest rate or give up to 50% of the business to anyone willing to help with the financing. Please get in contact with me at HeidNB@aol.com if you have an interest.

      Thanks!
      Heidi
        • Re: Childcare financing?  Answering Luckiest...
          NoBullFunding Scout
          This seems like a great opportunity. If they generate strong cash flow (don't forget that net income is not the same as cash flow), a loan for $100K shouldn't be too much of an issue even without collateral. I think your biggest issue is the down payment There are no lenders that will touch it if you don't have anything to put in. If you have no financial risk, a lender will worry that you would be able to walk away from the business if it didn't work out since you have nothing to lose.

          I know my suggestion is not as fun as "angel investors", but it's the way that is most likely to get you funded. If you save some cash, get the seller to hold a note for a portion, then a lender will think about doing it (of course it depends on your personal income, credit, and other business obligations).