Refinancing A Childcare Center’s Current Loan

Submit your information online if you are interested in refinancing an existing Childcare Center loan. This preliminary application will get us started so that we can start to identify lenders, and determine loan terms & interest rates.

All information that you provide is completely confidential and will only be used by Childcare Broker to help you refinance your loan. You will likely need to refer to last year’s income statement (P&L statement), and select other financial information to answer the questions.

We will be in touch with you shortly after receiving your online answers to provide estimates on how much you can save.

To secure a loan, additional documentation will be needed such as income tax returns, financial statements, and information on your childcare center. To secure a loan with low interest rates and good loan terms, we will need to understand all the factors that lenders look at.

Thank you for choosing to submit your information online. Childcare Brokers does not pull credit reports, so starting to refinance your current loan with us will not affect your credit score. It is our view that it is best for the borrower to provide a credit report for interested lenders to review, instead of each interested lender pulling a credit report. If you don’t have a credit report, here is a website for you to get one for free, but, really you can get it anywhere:

Some lenders have a national footprint, while other lenders will lend in just a few states, just one state, or even just in a smaller local area. . . . Some national or regional lenders only make loans to metro areas, while others will only make loans to rural areas. . . . Providing your location will allow us to match your center with all lenders that lend to your center's geographical area.
Most lenders refinancing childcare center loans will lend against the collateral value of the center's real estate, but not the business value. But, there are a few lenders that will refinance childcare centers and will consider the value of the business in their decision.
If your current loan is a variable rate loan, please indicate how it is variable. (For example: Prime interest rate plus 2.50%.
For example: 25 year loan. Got the loan 5 years ago.
For example, if you want an additional $100k to make improvements, please indicate.
To see how this is calculated, see: If you are not sure about exactly how to calculate the SDE, we can review your Income Statement and calculate it for you.
For example, if your current loan has an upcoming balloon payment, or if your loan as a 1% penalty if paid off before 6 months from today, please indicate.


The below questions are optional, but, can be important to help us determine the refinancing you qualify for. Please take a few minutes to answer whatever questions you can.
In many cases, we will be able to refinance your existing childcare center loan without your home also being used as collateral. However, sometimes (For example, when the debt to collateral coverage ratio is too high), additional collateral is required by lenders to either approve the new loan, or for the borrower to get a significantly lower interest rate.
For example, a borrower may have $1,000,000 of collateral with $860,000 current balance on the borrower's loan. This is a 86% debt to collateral coverage ratio. If a lender requires a 85% debt to collateral ratio, the borrower can meet this ratio by only refinancing $850,000 and paying off $10,000 of the loan. If by paying off $10k of the current loan, the borrower will be able to reduce her interest expense by 1% ($8,500 in the first year), most borrowers would do this.
Please describe any negatives to securing refinancing.

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