Day nurseries, pre-schools and out-of-school childcare providers run premises-heavy, staff-heavy operations under tight regulation. Ofsted-required staff-to-child ratios mean payroll is largely fixed, while fees and funded-hours income arrive on cycles that rarely line up neatly with your costs. Credicorp lends to childcare businesses that are UK limited companies or LLPs, for business purposes. We do not lend to childminders or providers trading as individuals.
Why the cash flow is awkward
The economics of childcare are unusual. Your biggest cost — qualified staff — is set by the number of children on roll, not by when money comes in. Government funded-hours payments often land in arrears or in termly blocks, parent fees may dip over school holidays, and occupancy builds gradually as a new room or site fills. That leaves predictable gaps between when you spend and when you are paid.
- Bridging the gap between termly funded-hours payments and monthly payroll
- Covering staffing through quieter holiday periods or while occupancy builds
- Fitting out or refurbishing a room, garden or new nursery site
- Buying equipment, resources or safeguarding and security upgrades ahead of an Ofsted inspection
- Funding a deposit or first costs when opening or acquiring an additional setting
Premises and expansion
Opening a new room or a second site means committing to rent, fit-out and a staffing rota before a single new place is filled. Borrowing lets you put the premises and people in place ahead of demand, rather than waiting for retained profit to catch up. The same applies to one-off compliance work — replacing flooring, upgrading the kitchen, or improving access — where the spend is lumpy but the benefit is long-term.
How we lend
We assess the company's affordability and trading prospects, not the personal finances of any director. The borrowing sits with the company or LLP and we take no personal guarantees from directors. Because childcare income is genuinely seasonal, it helps to plan around your funded-hours and term calendar — our guide to managing cash flow in a seasonal business covers this, and funding payroll between customer payments looks specifically at the wage-timing gap that defines this sector.
Credicorp Flex and Credicorp Slice are both available. A revolving facility can suit the in-and-out rhythm of termly funding, while a structured plan can suit a one-off fit-out — Flex for seasonal businesses explains how a flexible limit works across busy and quiet periods, and your account team can help you choose. Your rate and term are those shown in your offer.
Lending to a company rather than to its owners is deliberate; you can read why we lend to companies, not sole traders for the reasoning. As an exempt business lender outside the FCA consumer-credit regime, Credicorp is a lender, not a broker, and is not covered by the Financial Ombudsman Service or FSCS.
See also: Can an accountancy practice borrow from Credicorp?, Funding equipment and plant costs, Financing materials and stock purchases.