Cash advances for UK kids nurseries.
For Ofsted-registered nurseries, day-care providers, and early-years settings. Funded against your parent card takings and government funding remittance combined. Built for operators where staff costs are 70% of revenue and rent doesn't wait.
A note on the lender panel for childcare
Childcare is a sector lenders treat carefully. Margin is thin, staff costs run 60-75% of revenue, and government funding rates haven't kept pace with cost inflation. We work with specialist lenders who understand the sector and price accordingly. We'll be honest about whether MCA is the right tool for your specific situation.
What MCA means for a kids nursery.
Childcare revenue mix is split between parent-paid card fees and government funding remittance (15/30 hour entitlements paid by the local authority). Card mix is typically 35-65% of total revenue depending on the proportion of funded vs private hours. Lenders treat both as eligible income but funded hours come in monthly via bank transfer rather than card. Common uses: Ofsted-required improvements (safety upgrades, accessibility), capacity expansion (extra rooms, garden upgrades), curriculum kit (sensory rooms, reading corners), staff training programmes, EYFS-aligned IT and tracking systems, second-site working capital, marketing for occupancy gaps.
Sound familiar?
Ofsted inspection findings need fast remediation.
Required safety, safeguarding, or premises improvements identified at inspection. Must be addressed before re-inspection. £8k to £40k of works typical, hard deadlines.
MCA funds remediation in days rather than weeks. Repayment paced through ongoing card and funding revenue. Sized so the daily repayment % is comfortable while staff costs continue.
Capacity expansion to take more 2-and-under children.
Under-2 baby room expansion has the highest fee rates but tightest staff ratios. £25k to £100k of works (room conversion, sleep room, change facilities) plus staff recruitment.
MCA funds the build-out. Daily repayment % from existing fee income covers payments while the new room ramps to capacity. Once full, the higher-fee revenue accelerates repayment.
Cashflow gap between funded-hours pay date and payroll.
Local authority funding usually pays mid-month for the prior month. Payroll runs end-of-month. Recurring 2-3 week cashflow squeeze, especially in nurseries with high % of funded hours.
Honest answer: this is usually better solved with a working-capital overdraft or invoice finance against the LA receivable, not MCA. We'll point you to the right tool. And quote MCA only if it's genuinely the best fit.
Here's what it actually costs.
A 60-place nursery borrows £25,000 for Ofsted-required premises improvements and a sensory room build-out. Monthly card takings (private parent fees): £35,000. £25,000. Average monthly card takings £35,000. Fixed cost 1.24. 10% daily repayment % on card sales, total cost £6,000.
These figures are illustrative. If a term loan or asset finance fits your situation better, we'll tell you.
Open the fixed cost calculator →Work out the real cost.
New businesses typically start at a higher daily % and a shorter term.
Illustrative only, not a quote.
- Advance£25,000
- vs card takings71%
- Fixed cost1.24
- Daily repayment£115
- Avg monthly£3,500
- Est. term8.9 months
Illustrative. The fixed cost is set on day one; daily repayment varies with takings. Term capped at 18 months.
Illustrative only, not a quote. Every figure here is subject to the funder. Funders advance anywhere from 100% up to 150% of monthly card takings, so 150% is not guaranteed, and the fixed cost is not guaranteed either. Your actual advance, fixed cost and terms depend on the funder and your business profile.
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Apply with these numbersKids nurseries, quick answers.
If government funding is more than around 70% of revenue and card mix is low, MCA is usually a poor fit. We'd recommend invoice finance or a working capital overdraft against the LA receivable. Lower-funded nurseries (under 50% government funding, more private fee mix) are a better MCA fit.
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