Childcare is a licensing-and-lag business: months of rent before the license posts, payroll every week, and subsidy reimbursements 30–60 days behind. A revenue purchase carries a center across those gaps. This is boutique funding: a person reads your file, not a scoreboard.
Fire marshal, zoning, background checks, the licensing visit itself — centers routinely pay two to five months of rent and buildout with zero revenue while the paperwork clears.
State subsidy programs reimburse 30–60 days after care is delivered, and a single paperwork hiccup resets the clock. The more subsidized families you serve, the bigger the float.
You cannot enroll the tenth toddler without hiring the teacher first. Staffing leads enrollment by regulation, so every growth step costs payroll before it earns tuition.
A childcare center's revenue is excellent — contractual, recurring, sticky — and a bank still cannot underwrite it in year one. No two years of returns, a lease as the main asset, and an industry the loan officer does not understand adds up to a polite decline.
The SBA route works for centers with patience and a strong file, but it moves in months. Licensing windows, competitor openings, and the school-year enrollment cycle do not wait for committee dates.
Tuition drafts weekly or biweekly; subsidies land monthly in arrears. A revenue purchase remits a fixed weekly slice sized to your deposit rhythm, so the purchase settles out of the same tuition flow that pays the teachers — no balloon, no surprise.
The best uses add licensed capacity: the classroom buildout that raises your cap by 12 kids, the payroll bridge while a new room fills, the bus that opens before- and after-school enrollment. Capacity in childcare converts to revenue almost immediately. Sharp terms, straight answers — that is the whole Cutting Cap model.
Fencing, egress hardware, cribs, and the punch-list items between you and a posted license — every week earlier is a week of tuition.
Hire the teachers for the new classroom and carry payroll through the 60–90 days it takes enrollment to fill it.
Buildout and deposits for the adjacent suite or second location while site one's waitlist proves the demand.
Not pre-revenue — we need three months of deposits to underwrite. But centers expanding a licensed site, or owners with an operating center opening a second, qualify on the existing revenue.
Yes. Subsidy reimbursements are deposits like any other; we read total deposit rhythm. The arrears lag is exactly what many centers use the purchase to smooth.
No. A revenue purchase is a private transaction between us and your business. No notices to families, licensors, or subsidy agencies.
A $15,000, $25,000, or $50,000 revenue purchase — and those are floors, not ceilings. We fund more when the financials support it. Apply in four minutes; decision in 24–72 hours.
