Chiropractic Startup Funding Options to Start Your First Practice
Other chiropractic startup funding options to consider include insurance companies, employer benefit programs, or debt consolidation products.
Opening a new chiropractic practice requires a fair amount of capital. Whether you plan to build, buy or rent the necessary space, you will likely have expenses related to the physical building and surrounding property, chiropractic equipment and appliances, office equipment and supplies , hiring and training of staff, etc. Unless you have some money set aside for your new practice, you will likely have to fund some or all of these costs. Understanding the chiropractic startup funding available is the first step to choosing the right one for you.
Chiropractic Startup Financing Options
Chiropractors starting a new practice have a variety of financial supply options.
Some to consider include:
- Small business loans. You can contact a bank or credit union and ask for the funds needed to start your practice by applying for a business loan backed by the Small Business Administration (SBA).
- Doctor’s office loan. This chiropractic start-up funding option is designed specifically for healthcare professionals and medical service providers looking to start or grow their business.
- Private equity investment. You can also obtain funding from investors who want to invest or obtain some level of ownership in your private practice.
- Commercial line of credit. This form of financing generally does not require any type of collateral and offers a revolving line of credit.
A small business loan tends to be the most attractive, says Elena Jones, credit and personal finance expert and founder of Finance Jar, a company that provides financial advice and guidance. Why?
“It generally offers fixed terms and more competitive bond yields,” says Jones, “as well as more alternatives and possibilities than non-SBA lending institutions. Additionally, some SBA loans tend to have participation requirements and reserve than traditional credit facilities.For this reason, SBA-backed lenders can be a fantastic tool for both new and seasoned chiropractors looking to expand their practices.
Nor are these the only options.
“Chiropractors may be able to tap into different funding sources,” adds Paw Vej, COO of Financer.com. Financer.com helps consumers and professionals compare supply and financial services options.
Vej shares that additional chiropractic startup financing options to consider include insurance companies, employer benefit programs, or debt consolidation products.
“Each type has its own advantages and disadvantages,” says Vej, “so it’s important to research each one carefully before making a decision.”
Selection of the best financing options for you
To choose the best chiropractic startup funding option for your new practice, it helps to know how each is different. This gives you a better idea of what may be most suitable for your situation and needs.
“When it comes to small business loans, the loan amount is usually based on the size of your business and how profitable it is,” says Vej. “Medical practice loans tend to be more targeted to practices that are in good standing and meet specific criteria. »
“Private equity investing offers a higher rate of return than traditional financing options,” continues Vej, “but there is also a higher level of risk associated with this type of investment. Finally, buying into an established practice can be a great option for those looking to increase their involvement in a particular area or region without having to start from scratch.
If you’re considering borrowing the money you need, Mario Delgadillo, vice president and chief strategy officer of the banking division at Baker Boyer Wealth Managementoffers additional factors to consider when choosing a lender.
“Make sure they understand your industry, its employees, and its potential customer base,” says Delgadillo. Also, do your research to make sure the lender’s loan products are competitive, have a reputation for high-quality service, and have experienced employees.
Delgadillo also recommends watching:
- If the lender has been in your community and industry for a long time
- What kind of value does it bring to the business relationship, beyond just providing a loan
- If he undertakes to respect confidentiality, ethics and trust
- Does the lender communicate clearly, regularly and openly?
Before getting financing
Whichever option you choose, there are a few additional steps you can take to make the process of obtaining financing easier. One is to create what Delgadillo calls “loan-ready finance”.
Delgadillo recommends that you prepare and compile the following before you even go to your lender:
- A solid and complete business plan
- Company formation documents
- Personal financial statements and tax returns
Delgadillo also recommends training your team before securing funding. In addition to yourself and your office staff, “you also need a qualified CPA, accountant, and business lawyer in your industry,” says Delgadillo.
To learn more about your financing options or to get help based on your specific situation, you can contact the SBA for personalized assistance. The SBA can also help you find a lender through its Lender match search. Just answer a few questions about your new chiropractic practice and it may put you in touch with a few loan options.