Daycare Owner Successfully Secures Financing to Grow
Learn how we were able to finance this deal for a business owner looking to expand his company by looking at the total picture.Â
Loan Amount
$1,290,000
Loan Purpose
The Small Business
Daycare Facility | LaPlace, LA
The Financing Challenge
A daycare facility in LaPlace, Louisiana, was experiencing significant growth, operating at full capacity with a waiting list of families eager to enroll their children. To meet this growing demand, the daycare owner sought to expand operations by purchasing a larger facility located just two miles from the original location. However, securing the necessary financing to fund the expansion was critical for
moving forward.
The primary challenge was securing a comprehensive
financing solution that would cover all aspects of the expansion—real estate acquisition, furniture, fixtures, equipment (FF&E), and working capital. Additionally, the loan needed to be structured in a way that addressed potential financial gaps, such as the inclusion of seller financing and secondary collateral.
SBA 7(a) Loan Scenario
Here's what our borrower brought to Ready Capital
Historical Financial Experience
The existing daycare’s strong financial track record demonstrated the viability and profitability of the business, bolstering the loan application.
Industry Expertise
The owner’s extensive experience in operating a successful daycare played a critical role in securing the loan, as it reflected a deep understanding of the industry.
Comprehensive Business Plan
Detailed financial projections and a well-structured business plan provided a clear roadmap for the expansion’s success, helping to further convince lenders of the project’s potential.
CREATIVE SOLUTION
Reliable Results
- The business was able to successfully expand, securing a new facility to accommodate its growing demand.
- The business doubled the capacity in order to continue serving the community, with the added benefit of a stronger financial foundation to support future growth.
- The owner was able to secure financing and get the deal done to reach his end goal.
The Non-Bank SBA Preferred Lender Difference
A small business loan is not an empty box like a checking or savings account. No two small businesses are alike when it comes to their financing needs. This means that small business financing requires out-of-the-box thinking and capabilities many banks simply can’t offer.
Ready Capital is a non-bank, SBA preferred lending partner (PLP). We speak fluent small business and have the process in place to help them reach their goals the first time.