How to Start a Chiropractic Business with Financing
The money required to start your own chiropractic practice may seem intimidating, but here’s how you can navigate startup costs and more. The total cost of setting up an office, hiring staff, and purchasing medical equipment can quickly add up. Plus there are additional obstacles. It’s important to remember that most lenders treat chiropractic care as alternative medicine when it comes to loan terms. So, you may not get the same rates as doctors and dentists. Here are ways to finance your chiropractic practice:
Types of Chiropractor Loans
Long-Term Loans: These are loans that can be paid off over many years. They can be used for large purchases like medical equipment, new construction, or to buy property. However, it’s more difficult to qualify for low interest rates for this type of loan.
Short-Term Loans: If you need to borrow money for a small amount of time, this may be the right fit for you. Common expenditures here include salaries, rent, and medical or office supplies. These typically come with higher interest rates.
Equipment Financing: These come with lower interest rates but at a cost. Equipment financing is when lenders use your actual chiropractic equipment as collateral in the event you default on your loan payments.
Line of Credit: A low-risk form of financing with higher interest rates. Your financial institution will determine the maximum line of credit extended to your business. Payments can be made monthly or as agreed upon with your bank.
What You Need to Know About Lenders
Banks and credit unions: This is the go-to option for many people. Often considered traditional and trustworthy, rules and regulations for borrowing tend to be strict. This tends to be a more reliable option for established businesses as they have a higher chance of approval.
Government: You may be eligible for funding from the U.S. Small Business Administration (SBA). The program means the federal government agrees to partially pay a portion of your business loans. However, this is typically applicable to businesses that have operated for two or more years.
Online Lenders: If you don’t have any history owning a business, this may be an option for you. It’s relatively easy to get approval. The catch is interest rates are generally very high.
Other Finance Options
It can help to find a financial lender that’s experienced in working with chiropractors. This may afford you the opportunity to get the best interest rates and deals.
You may have noticed a lot of finance options require you to have past experience owning or operating a chiropractic business. Other ways to combat this are to take out a personal loan. While it’s not advised, you can secure a loan against your home, car, or other investments. This option comes with the dangerous risk of losing your possessions in the event you can’t pay your loan.
While it’s not difficult to qualify for funding, there are definitely obstacles that can make it a tricky road to navigate. Don’t hesitate to speak with various lenders to fully explore your options given your chiropractic experience and financial situation.