Frequently Asked Questions about Day Nursery Funding

How much can I borrow?
If the business is being acquired on a going concern basis, the purchase price will include fixtures & fittings and goodwill.  We can obtain up to 70% of the Going Concern valuation.
This can increase to up to 100% if additional security is offered. All subject to serviceability.

What are the repayment terms?
The term can be arranged to suit your circumstances, 20 years is typical, but we can arrange up to 25 years.

What are the interest rates?
This largely depends on the quality of the Day Nursery, the experience of the applicant, loan to value and the strength of the accounts. We can provide a written illustration on request.

Do I need a business plan?
Yes - Lenders will need to see a Business Plan to include accounts for the business for the last two years and a profit forecast for the next 12 months.

What costs are involved?

  • Valuation fee of between £300 and £1,500 (plus vat).  The variation is due to the type of valuation, value of premises and location.
  • Bank arrangement fee will be between 1% and 2% of the loan.  Often this can be added to the loan on completion
  • Land registry fees and disbursements in the region of £400
  • Legal fees (these will vary from firm to firm)
  • Stamp duty land tax (SDLT) will be payable on purchases. Please check with your solicitor
  • Broker Fees – We do not charge any upfront fees but will charge a completion fee of 1% of the amount raised if the deal goes through.

Can you help with a deposit?
The maximum loan we can achieve is usually 70%, and you need to contribute 30% plus costs (covered above).  Some lenders will take a second charge on your private residence to cover this amount.

What are the timescales?
In most cases, we can obtain an agreement in principle within 48 hours.
A valuation will take up to 2 weeks to arrange.
The rest is dependent upon the speed of your solicitors (and sellers solicitors if a new purchase).
This can be 3 to 4 weeks.

What do I do next?
Call us, email us, or submit an online enquiry request.
One of our experienced consultants will then contact you and discuss your requirements in more detail.

SCR Office
© 2022 Sterling Commercial Finance Ltd

Sterling Commercial Finance Limited is a Broker not a Lender.
Sterling Commercial Finance Limited is authorised and regulated by the Financial Conduct Authority.
Sterling Commercial Finance Limited is entered on the FCA Register https://register.fca.org.uk under reference 733615.
The guidance and/or advice contained in this website are subject to the UK regulatory regime and are therefore targeted at consumers based in the UK.
Sterling Commercial Finance Limited is registered in England and Wales No. 3853461.
Sterling Commercial Finance Limited is registered for VAT No. 737604523. We are registered with the ICO Z7480727 and you can check via www.ico.org.uk. We source finance from the whole of market. We may receive commissions that will vary depending on the lender, product, or other permissible factors. The nature of any commission model will be confirmed to you before you proceed.

Head Office
Sterling House, 5 Wheatcroft Business Park, Landmere Lane, Edwalton, Nottingham NG12 4DG
Tel: 0115 984 9800 Fax: 0115 921 5550

ANY PROPERTY USED AS SECURITY, INCLUDING YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
EARLY REPAYMENT CHARGES APPLY. A BROKER FEE MAY APPLY.

NACFB