Childcare is the clearest example of a cost base that will not bend. Staffing ratios are a legal requirement, so payroll is effectively fixed the moment a child is on roll. Income, meanwhile, moves with term dates, occupancy and the timing of government funding.
A fixed cost base against a moving income
Payroll runs every month at a level set by ratios, not by how full the rooms are that week.
Term transitions and the summer period can move occupancy sharply while the staffing requirement stays where it was.
What operators in this sector actually fund
- Payroll through a quieter term or the summer dip
- Refurbishing a room to raise registered capacity
- Outdoor play equipment and safety surfacing
- Recruitment costs and DBS checks before a September intake
- Bridging a gap between funding periods
A £30,000 advance, both terms
Here is what a £30,000 advance looks like on our published rates:
| £30,000 advance | 20 weeks | 26 weeks |
|---|---|---|
| Approved advance | £30,000 | £30,000 |
| Arrangement fee (5%, deducted at funding) | −£1,500 | −£1,500 |
| Paid to your account | £28,500 | £28,500 |
| Factor rate | 1.48 | 1.55 |
| Total repayable | £44,400 | £46,500 |
| Weekly payment | £2,220 | £1,788 |
| Total cost on cash received | £15,900 | £18,000 |
Illustrative, using our published factor rates. Your own rate is set by underwriting and is stated in pounds on your agreement before you sign it.
Whether you qualify
Four minimums. Meeting them is not the same as being approved — it is the point at which applying is worth your time:
- UK limited company or LLP — incorporated and registered at Companies House.
- 6+ months trading — six months is the least we can work with.
- £25,000+ monthly turnover — consistent, and visible in the business bank account.
- Active UK business current account — this is where the underwriting actually happens.
Repayments are weekly and do not pause over the summer. If your quietest weeks would struggle with the payment, the 26-week term is usually the safer choice.
Why the decision being ours matters here
Nursery accounts show payroll that does not move against income that does. Where the facility is one we fund ourselves, that pattern is assessed as the regulated model it is rather than as volatility.
Solvo funds £10,000 to £75,000 from its own book, usually within 24–72 hours of final documents. One decision, made by us — your file is not shopped around a panel. Above £75,000 we arrange the facility with a lending partner.
About 3 minutes. No obligation. Limited companies and LLPs only.
Frequently asked questions
Can funding cover payroll during a quiet term?
Yes, and it is one of the most common uses in this sector. Repayments are weekly and continue through quiet weeks, so match the term to your leanest period.
Does government funding affect eligibility?
No. Funding receipts appearing on their own schedule is normal here and is read as part of the trading cycle.
Do you fund nursery refurbishment?
Yes, including work that raises registered capacity. Advances run from £10,000 to £75,000 from our own book.
Which term suits a nursery best?
Often 26 weeks. The weekly payment is lower, which matters when occupancy dips over summer while payroll does not.
Illustrative only. Solvo Funding is a UK direct lender for limited companies and LLPs and also acts as an intermediary for facilities above £75,000. Advances are subject to underwriting; meeting the minimum criteria is not the same as being approved and we cannot guarantee an offer. Finance for limited companies and LLPs is generally not regulated by the Financial Conduct Authority.