Background
Buying a nursery as a first-time owner can feel daunting. With strict lender requirements, regulatory considerations, and the need for a strong financial package, many prospective buyers worry about whether they’ll be able to secure the funding needed.
This case study highlights how we supported a client in purchasing their first nursery — despite challenges — by structuring the finance effectively.
The Opportunity
- Purchase Price: £275,000
- Loan Secured: £165,000 via a Government Recovery Loan Scheme
- Buyer Profile: First-time nursery buyer entering the sector
The client had identified a promising nursery business with strong occupancy and potential for growth. However, as a first-time buyer, securing finance was a challenge.
The Challenge
Lenders can be cautious when dealing with first-time buyers in the early years sector. Concerns often include:
- Lack of direct ownership experience
- Reliance on government funding for income
- Staffing and compliance requirements unique to nurseries
While the nursery itself was a strong prospect, these factors meant careful planning was required to reassure lenders.
The Solution
Working closely with the client, we:
- Prepared a detailed business plan highlighting occupancy levels, local demand, and sustainable cash flow
- Demonstrated the client’s relevant background and transferable skills to strengthen their profile
- Showcased the buyer’s strong deposit contribution, which reduced risk and made the funding package more attractive
- Secured £165,000 through the Government Recovery Loan Scheme, bridging the gap between the purchase price and available capital
The Outcome
Despite the challenges of being a first-time buyer, the finance was successfully secured and the purchase completed. The combination of a solid deposit, a clear business plan, and use of a government-backed loan gave the lender confidence in the buyer’s ability to manage and grow the nursery.
Conclusion
This case study demonstrates that with the right approach, even first-time buyers can overcome challenges in securing nursery finance. A strong deposit, careful preparation, and access to the right funding schemes can make all the difference
