Nursery World - Nursery Management: Finance

A challenging economic climate and increased caution from banks has left some nurseries unable to expand in the past few years. Katy Morton finds indications that things may be improving

While the National Day Nurseries Association's most recent business performance survey revealed that fewer nurseries found banks to be supportive in 2012 than in 2010, a recent increase in the number of settings securing finance shows there might be light at the end of the tunnel.

Although childcare providers claim that banks are still very cautious, there have been hints of the financial institutions' increased willingness to lend to nursery businesses.

'In the past few years, it has been almost impossible to borrow money, which has slowed down our growth considerably,' says Tom Shea, director of Child First. 'Lenders started asking for more information, rates increased and terms and conditions changed substantially. However, last summer banks became more interested in good propositions.'

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