Charter Schools
Access the capital you need to fund your charter school.
Schools have a unique challenge – cash flow is high at tuition lock-in dates only a few times per year, but costs for each semester start well before the school year. Charter programs feel the pinch even further when families see the value in your program and enrollments jump. Platz Capital has financial solutions to smooth out cash flow and to allow your institution to grow the way it was meant to.
Working Capital for Charter Schools
Financial departments at schools call the money needed to run the organization on a day-to-day basis “working capital.” It’s the money your school needs to meet payroll, purchase supplies, update your website and marketing materials, and to make sure everything is set perfectly for the first day of school. Working capital can come from a number of places, but one of the underutilized resource for schools is to take advance funding on signed enrollment contracts. We’ll talk about solutions in a moment, but first, here are some of the benefits of accessing financing:
Working Capital Benefits
Resolve solve short term cash flow needs
Open up funds held in hard assets and property to advance your programs
Access funds from contracts to meet costs that accrue before the school year
Purchase equipment and property necessary to become a truly independent educational program
What is Charter School Funding?
Charter school funding is a set of financial tools that allows your school to operate more effectively and consistently. Rather than relying on “boom and bust” cash flow, asset acquisition, and payroll management, your organization is able to distribute resources more consistently based on trends.
Our leadership team has deep experience in finance and charter school management. Because of our background and our experience in consulting, we are able to advise on best practices that can help your charter school reach new levels of stability and growth.
Choose the right financing option for the right application
One of the biggest challenges charter schools face is that they know how to develop and implement curriculum, but because the lending industry is such a mix of options, and because direct lenders simply want to sell their products, schools can choose an incorrect financing type to apply to a particular need. That can increase the cost of money, and put the institution at risk when it comes to future financing.
Working with a commercial loan broker helps you overcome these challenges. We don’t try to sell you on any particular financing solution. Our goal is to understand your operations and to provide solutions, including the risks and rewards of each available path. Because of that, and because of our background in national and international charter school programs, we are able to assist decision makers in developing a short and long-term path to financial security, one that adapts with your school as you evolve.
Traditional and non-traditional lenders available to you
In Capital Accessible Through Our Network
Fastest time to funding through Platz Capital
Factoring
This program allows you to sell contracts to a factor, providing you early access to funds.
Private Lending/Hard Money
Maintain liquidity by leverage existing high-value assets to reinvest in your school.
Working Capital
Access capital for day-to-day expenses and payroll.
Equipment
Finance the tools and technologies that help your school stand out.
Real Estate
Purchase, build, and revitalize your school, property and learning spaces.
1
Step 1 - Preapplication
This is the step the banks miss. You'll give us simple information that will help us position you for funding.
2
Step 2 - Financing Selection
Our team sources and presents offers along with the critical information you need to make decisions.
3
Step 3 - Closing
We facilitate the process from final selection to closing to create the smoothest process possible.
BEGIN THE PRE-QUALIFICATION PROCESS
F.A.Q.
Q. Doesn’t private lending put schools at risk with high interest rates?
There are many types of financing created for charter schools, and many of them have no higher rates than any other professional loan, and some of them have lower than average rates. The most important thing in reducing risk is to match the right type of financing with the right amount of time or term for the loan, as well as the right interest rates. Together, those determine the cost of money borrowed to run your organization. Our brokerage works with you to identify costs that are manageable and that allow you to access the dollars that you need.
Q. Do charter schools qualify for small business loans?
Charter schools that are set up as nonprofit organizations do not generally qualify for small business loans, however, under the CARES act, there were no stipulations from charter schools receiving PPP loans and other forgivable funds during COVID shut downs. There are advocacy groups working to expand available dollars for charter schools from federal and private funds. We stay on top of the latest news in order to match charter schools with the best rates they are eligible to receive.
Q. How does a charter school apply for the right financing?
Selecting and applying for loans is a time-consuming process that requires knowledge of the industry, the available lenders, and the risks and opportunities in each area of financing. The best way is to work with an experienced charter school loan broker who can identify opportunities, inform you about loan options, and who can collect the information, target lenders, and apply on your behalf. You stay in the decision role while experts conduct research, evaluate your finances, and then match the right lenders and terms to the specific financing you need.
Q. How long does it take charter school loans to close?
Each loan type, from equipment financing to working capital closes on its own schedule. Some financing types can close in a matter of days or hours, while some funding can take up to 45 days to reach the closing table. In each instance, we work on the details and help you answer any questions the lender might have in order to keep your loan on schedule and to prevent delays. That means your loan closes in the fastest timeframe possible, providing you the time to remain focused on what you do best – running your school.