Lendus.

Nursery & Childcare Business Loans

Finance your nursery purchase, expansion, or refurbishment with competitive rates. Lendus compares 200+ lenders to help childcare providers access the funding they need.

200+ UK lenders
2-minute application
No credit check to apply
FCA-regulated brokers

Typical Range

£10k – £2m

Average Loan

£150k

for nursery & childcare

Decision Speed

24–48 hrs

for unsecured loans

Eligibility requirements

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Loan types available

Unsecured Business Loan

Rate
6.9% – 22.9% APR
Term
1 – 5 years
Security
No security required
Best for
Refurbishments, outdoor play equipment, staffing costs, and Ofsted compliance upgrades

Secured Business Loan

Rate
4.5% – 13.9% APR
Term
1 – 20 years
Security
Nursery premises or residential property
Best for
Acquiring an existing nursery, purchasing premises, or large-scale expansion projects

Commercial Mortgage

Rate
4.2% – 9.5% APR
Term
5 – 25 years
Security
The nursery freehold property
Best for
Buying a freehold nursery property or converting a building for childcare use

Representative example

Borrow £150,000 over 36 months at 9.9% APR (fixed). Monthly repayment: ~£4,833. Rates depend on your circumstances and the type of loan.

Market context

The UK childcare sector is worth approximately £6.7 billion, with over 60,000 registered childcare providers caring for around 1.3 million children. Demand continues to rise as government-funded hours expand to cover working parents of children from 9 months.

Common challenges

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Bad credit?

Several of our 200+ lenders work with nursery & childcare businesses that have imperfect credit. You may need a personal guarantee or higher rate, but options exist. Our eligibility check uses a soft search — no impact on your credit score.

Frequently asked questions

How much does it cost to buy an existing nursery?
Nursery acquisition prices vary widely based on location, occupancy, Ofsted rating, and whether the property is freehold or leasehold. Typical prices range from £100,000 for a small leasehold setting to over £2 million for a large freehold nursery with strong occupancy. Goodwill is usually valued at 3-6 times EBITDA. Specialist nursery lenders accessed through Lendus can fund up to 100% of the purchase price for well-performing settings.
Can I get a loan to open a new nursery?
Yes, but start-up nursery finance requires thorough preparation. Lenders want to see your early years qualifications, a detailed business plan with financial projections, evidence of local demand (e.g. waiting lists, population data), and a suitable property with planning permission for D1/E(f) use. Having a background in nursery management or working in the sector significantly strengthens your application.
How does the expansion of government-funded hours affect lending?
The expansion of funded hours to cover children from 9 months creates both opportunity and risk. Lenders recognise the increased demand this generates but also scrutinise whether the funded rates cover your costs. A nursery with a healthy mix of funded and fee-paying hours, strong occupancy, and controlled staffing costs is very attractive to lenders. Lendus can connect you with lenders experienced in the childcare sector.
What finance is available for nursery refurbishment and equipment?
Refurbishment loans from £10,000 to £150,000 are readily available on an unsecured basis. Common projects include new outdoor play areas (£15,000-£50,000), kitchen upgrades, sensory rooms, baby rooms, and general redecoration. For larger projects involving structural work, secured finance offers longer terms and lower rates. Some lenders offer repayment holidays during renovation periods to ease cash flow.

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Guides and resources

How to Get a Business Loan Business Loan Eligibility Secured vs Unsecured Best Business Loans UK iwoca Review Funding Circle Review

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