I want to start a day care center but I have bad credit. How can I get a loan?

I really want to start this business. I am a single mother and have always had this dream. Any real suggestions would be appreciated.

The first step is to prepare a business plan. Even if you will not be applying for a bank loan, a business plan helps you to think through your business - what it needs, who it will benefit, how much it will cost, and what is its potential. It is easier to think of how much money you will need, if you actually know how much money you will need. A business plan can help you plan that out.

Here are free business plans on childcare business that you may want to look into:

http://www.sba.gov/library/pubs/mp-30.do...
http://www.misbtdc.org/documents/BPWORKB...
http://www.misbtdc.org/documents/CDCPLAN...
http://sbdcnet.utsa.edu/sbic/bplans.htm

You may want to read the free article "How To Start Your Own Day Care Center" http://www.powerhomebiz.com/vol40/daycar... It covers various aspects of starting and running a daycare center including the demand for daycare centers, how to start this business, shoestring strategies, how to operate a daycare center, tips on caring for the children, income potential, how to manage your daycare, marketing your business and other additional income potential. There are so many things to learn about the business that the first step is to read everything you can find.

For in-depth information, I suggest checking out the following books:

- Start and Run a Profitable Home Day Care
- The Daycare Provider's Workbook
- Start Your Own At-Home Child Care Business
- So You Want to Open a Profitable Child Care Center :
Everything You Need to Know to Plan, Organize and Implement a Successful Program

It is also important that you learn the tax rules affecting daycare centers, especially if you are going to open one from your home. Here is the IRS page on child care centers: http://www.irs.gov/businesses/small/indu...

As for the licenses and requirements in your state, the Administration for Children and Families provide a state by state listing of contacts for licensing and regulations governing child care businesses:
http://www.nccic.org/statedata/dirs/rego...

As for the finances you need, bad credit may make it difficult for you to get loans. You may find a tough time getting a loan from financial institutions with poor credit, even from SBA. SBA requires a number of factors to avail of their loans, and one of them is good credit history (see SBA Basic requirements http://www.sba.gov/financing/preparation

If you cannot get loans, try to get a loan from your parents, family and friends. If they cannot give you any, use your credit card. Credit card requires no collaterals but are an expensive source of funds.

Otherwise, either downscale your plans and amount of capital needed; or wait until your financial situation improves.

I wanted to open a daycare myself a few months ago...When I found out all the requirments need I decided to wait awhile..It was going to cost quite a bit to get started..such as fenced in yard..extra bathroom..ect..
I was told that I could apply for some kind of finanical aide to help me get started..I was told to go to the department of human resources to get all the facts..Maybe this info will help you.