Nurseries are Booming

Having the Right Finance is Key when looking to buy a Nursery for sale

It may not surprise you to hear that at ASC Finance for Business we have seen a steady increase in applicants looking at purchasing a day nursery for sale. Nurseries are becoming ever more attractive – the industry has experienced a major boom in people looking to run their own business in recent years. A report published earlier this year by LaingBuisson highlighted that the market for UK day nurseries is 50% larger than it was ten years earlier, driven primarily by increasing nursery fees.

So, if you are looking at getting into the industry, what are the key aspects to consider when it comes to finance? We’ve highlighted four of them below.

1) The business in question

As with any purchase, lenders will look at specifics of the business you are looking to take on. This will include looking at the number of registered children, the turnover and financial performance of the business, and whether the property is leasehold or freehold.


OFSTED’s report history is another important consideration. Lenders generally do not want to finance nurseries which are deemed “Inadequate” or “Require Improvement”. So, it is worth checking what the most recent reports show.

3) Management and Experience

Nurseries are a specialised industry. They involve dealing with childcare regulations and ensuring that staff have the required qualifications. Therefore, lenders will look favourably on applications that show previous experience working in the industry. Failing that, it is important to illustrate to lenders that you are appropriately prepared and have a strong management team in place.

4) Demonstrating your intentions

The market for nurseries can be very competitive, so you need to be able to demonstrate to the seller that you can be considered a serious bidder. It pays to make sure that you have organised finance early on in the process, so that you hold any advantage you can over the competition.

ASC Finance for Business are Commercial Finance Brokers with 50 years’ of arranging small businesses faster, simpler, better business finance.

To speak to your local ASC Regional Director about getting finance, click here.

Nurseries are Booming