Each cost fits its own funding type, and Deerbrook Lenders forwards a center's request to a funding partner, the one party that decides on terms.
Three invented cases for a child care center already open: purifiers and a sanitizing dishwasher on 30 months of equipment financing, a training round and classroom materials on a nine-month working capital loan, and a supply order drawn on a credit line and cleared in four payments. Playground installs, fencing and classroom build-outs are property work outside this site.
At a glance
- Child day care services (NAICS 624410), Jackson County, MS
34 employer establishments (CBP 2023)
- Paid employees at those child day care establishments
505 (CBP 2023)
- Child day care establishments with fewer than five employees
3 of the 34 (CBP 2023)
- Child care services with no paid employees (NAICS 62441), Jackson County, MS
360 (NES 2024)
Air purifiers and a sanitizing dishwasher for a Pascagoula, MS daycare center: pay cash or finance them
Suppose, with invented prices, that a daycare center in Pascagoula, MS puts a portable HEPA air purifier in each of its 7 classrooms at $685 apiece and replaces its worn kitchen dish machine with a sanitizing dishwasher at $4,320 that connects to the existing hookups. That invented order totals $9,115.
Paid in cash, the invented $9,115 leaves the operating account in one week and no payment follows. Carried on equipment financing for 30 months at a 13.35% annual rate, the same invented order becomes $359.02 a month; the 30 invented payments come to $10,770.60, so the center pays $1,655.60 for keeping its cash.
The purifiers and the dishwasher are movable and arrive with a vendor invoice, so a funding partner may treat the order itself as collateral. A fixed-rate term loan is another way to carry the same classroom equipment; a funding partner may prefer one product or the other and sets any rate and term.
Whether the cash or the payment is the better trade is a question of the reserve the center wants to keep for payroll and rent. The interest figure in the invented case is the price of keeping that reserve whole.
A working capital loan for teacher training and classroom materials at a Jackson County, MS child care center
In a second invented case, the center hires 4 assistant teachers and prepares them before their first classroom day: a CPR and first-aid course at $95 each, background screening at $62 each and 32 paid training hours each at $13.50 an hour, an invented $2,356 for the training round.
It also restocks 5 classrooms with books, puzzles, building sets and art supplies at an invented $1,180 per room, or $5,900. The two invented costs reach an $8,256 together.
A working capital loan for that invented $8,256, priced at 15.85% a year over nine months, carries a payment of $978.98. Across the nine invented payments the center pays $8,810.82, and $554.82 of that is interest.
Training hours and classroom materials are used up rather than kept, so nothing in this cost could serve as collateral the way a purifier does. That points to a short working capital product rather than equipment financing; a partner may look at recent bank statements and decides on any offer.
Monthly supply orders on a credit line: a Pascagoula, MS child care center example
Supplies come back every month at a child care center: paper towels, gloves, sanitizer, wipes and the snack order. In one invented month the supply bill is $3,140, and the center charges it to a credit line priced at 14.9% a year.
Paying $785 of principal each month plus that month's interest, the center clears the invented draw in 4 payments, with $97.47 of interest across them.
| Payment | Interest | Principal | Balance after |
|---|---|---|---|
| 1 | $38.99 | $785 | $2,355 |
| 2 | $29.24 | $785 | $1,570 |
| 3 | $19.49 | $785 | $785 |
| 4 | $9.75 | $785 | $0 |
As each payment lowers the balance, the open limit grows again for the next order, without a new request each month. The limit, and whether a line is offered at all, are a funding partner's decision.
Child day care employers in Jackson County, MS: staff size and providers without employees
County Business Patterns 2023 listed 34 child day care services establishments with a payroll in Jackson County, MS (NAICS 624410), employing 505 people, about 14.9 per establishment by this site's arithmetic.
Just 3 of those 34 (8.8%) ran with a staff under five. Nearly all of them, then, carry a staff of five or more, the scale at which a training round like the second example comes up. The 2023 annual payroll of those establishments was $10.5 million.
Nonemployer Statistics 2024 keeps its own count of businesses without paid employees: 360 child care services businesses in Jackson County, MS (NAICS 62441). Jackson County, MS and ZIP 39567 business totals for all trades are on the Pascagoula, MS page, and the other trades on this site are listed on the industries page.
Playground installs and classroom build-outs: costs a Pascagoula, MS daycare center request leaves out
A daycare center request on this site covers what the center can move, use up or pay out as wages. The costs below are work on the property or a center not yet open, and they stay outside it:
- Playground equipment set in the ground, shade structures and fencing
- Classroom build-outs, added restrooms, sinks and new wiring
- Kitchen plumbing, hoods and walk-in coolers
- A center that has not opened yet
Portable purifiers, the dishwasher, classroom materials, the supply order, training hours and payroll are business costs a request can name, and the funding partner decides on each one.
By Deerbrook Lenders · Updated
