Chiropractic Business Loans: How to Qualify for Funding
If you own or manage a chiropractic business, your job is to relieve your patients of pain and keep them healthy. Unless you have unlimited amounts of cash at your disposal, you'll likely need a chiropractic business loan to do so.
Fortunately, there are a variety of chiropractic business loans out there, so you're sure to find one that meets your unique needs. Here's everything you need to know about chiropractic business financing.
What is a Chiropractic Business Loan?
A chiropractic business loan is a type of lending designed for chiropractors and their companies. They can be broken down into two basic categories: SBA loans from the Small Business Administration and commercial business loans from private companies.
These loans for chiropractors give professionals the capital they need to keep their doors open. Chiropractors can use them to pay for building leases, cover salaries, improve cash flow, expand operations, and even cover office supplies, software subscriptions, and medical equipment like x-ray machines. Depending on the type of loan product, they can take advantage of low rates and flexible repayment options.
How Does a Chiropractic Business Loan Work?
Chiropractors need to apply for loans through either their bank or a reputable business lending company. During the application process, they may need to answer questions about their gross revenue, how long they have been in business, and what they plan to use chiropractic financing to pay for. This will help the lender determine the types of loans the business can qualify for, how much they are eligible to receive in lending, and details of the repayment terms including the interest rates. At this point, the business can decide whether they want to move forward with lending or not.
How to Use a Chiropractic Business Loan
With a chiropractic business loan, you can receive the funds you need to run and grow your business. Here are several of the many ways a chiropractic business loan may help you.
Update Your Practice: If your practice is outdated, you can transform it into a modern space with a loan. Your patients are sure to appreciate a comfortable lobby with inviting décor and amenities such as flat screen televisions, a coffee station, and digital check in.
Pay Monthly and Occasional Expenses: With a working capital loan, you'll be able to pay for the day-to-day operating expenses that keep your practice running smoothly. You can also cover the cost of insurance, licensing, and continuing education.
Invest in Cutting-Edge Technologies: While the latest technologies are essential if you'd like to provide the highest quality care, they're expensive. The good news is a chiropractic loan can help you purchase Transcutaneous Electrical Nerve Stimulation (TENS) equipment and the tools you need for cold laser therapy.
Grow Your Practice: A chiropractic business loan is also a good idea if you'd like to attract new patients or expand to more locations. You can use it for marketing costs and new commercial property.
Types of Chiropractic Business Loans
If you shop around and weigh your funding options, you'll find that there are a variety of loans for chiropractors to apply for. The reason for your loan as well as your credit and financial situation will determine the best option for your unique needs. The most common types of chiropractic business financing include:
Small Business Administration (SBA) 7(a) Loan: As long as you're able to meet the somewhat rigorous requirements, the SBA 7(a) loan is a great choice. You may lock in a low interest rate and enjoy low monthly payments and long payment terms. SBA 7(a) loans are ideal for working capital, debt consolidation, and commercial real estate.
Business Line of Credit: If you're unsure of exactly how much money you need to borrow, a business line of credit makes sense. Once you receive a line of credit, you can withdraw as much or as little as you'd like up to a set credit limit. Since most business lines of credit are unsecured, you won't have to put up any collateral.
Small Business Loan From An Alternative Lender: With a term loan from an alternative lender, you'll receive a lump sum of money upfront. Then, you'll repay it via fixed monthly payments over an agreed upon term. If you need access to business funding quickly, this can be a viable option for your chiropractic practice.
Merchant Cash Advances: Merchant cash advances are worth considering if your patients pay with debit and credit cards. Since your lender will take a small percentage of your transactions, you will lose some money if you go this route.
Equipment Financing: If your primary goal is to buy new equipment or update outdated equipment, consider equipment financing. It's important that you figure out what type of equipment you'd like in advance as many lenders will pay the lender directly without ever depositing the money into your bank account.
What to Do to Qualify for a Chiropractic Business Loan
While each medical business financing lender has its own unique criteria, most of them will ask for the items below when you apply for a chiropractic business loan. Of course, merchant cash advances, for example, will be easier to get approved for and have more lenient requirements than SBA loans.
Business Basics: The lender will likely want to know a number of details about your business including its name, address, and date of establishment. They may also ask for your tax ID and the number of employees you have.
Business Finances: You'll need to provide the lender a few years of tax returns, checking and savings account statements, unpaid invoices, and other financial information. An SBA lender will require more financial documentation than a merchant cash advance lender. Chances are the lender will also check your credit score and debts.
Business Assets: If your loan requires collateral, you'll need to share details on it. You may need a document that says you own a commercial property, for example.
Business Loan Down Payments: Some lending types require business loan down payments. Of course, the larger the down payment, you'll often qualify for better lending terms.
How to Choose a Chiropractor Business Lender
It's important to choose loans for chiropractors from companies that actually have experience working with this type of business. You want someone like Fora Financial with the expertise to guide your business through the application process, suggest the best loan options for what you plan to do, and can explain each loan type in detail. While there are other companies like Select Funding, Lending Tree, and Funding Hero that offer similar loan products, Fora Financial continues to lead in how quickly loans are approved and paid out, and in offering loan products designed for chiropractic businesses.
Chiropractor Practice Debt Consolidation
There are many different term loan products available that can make business loan consolidation possible. But not all loan products are designed for debt consolidation. There are many reasons to consolidate business loans for chiropractors. One of them is to take advantage of better interest rates. Sometimes new businesses take on loans with higher interest rates. By consolidating these loans once they have more revenue to show they can improve their cash flow by having lower monthly payments each month. Getting a small business loan for debt consolidation is possible even for newer chiropractic practices.
Loans Needed for Chiropractic Practice Acquisition
Entrepreneurs, investors, and chiropractors who want to acquire an existing chiropractic practice can do so with business acquisition loans. This option typically requires a sizable down payment for a business loan and a good business credit score. Other factors that can be taken into account include past business revenue and profitability. If the business has at least average revenue for a chiropractic practice, it may be eligible for acquisition loans.
Consider an Installment Loan
Installment loans are specifically designed to be repaid in installments and are the types of loans used for consumer purchases like cars, homes, and even a college education. Some loans for chiropractors are installment loans. The expectation is that the borrower will repay the loan typically monthly until the full amount plus interest has been paid. Chiropractic business loans are a subset of medical practice loans. But chiropractic loans compared to other medical loans may offer more flexibility. Installment loans can be used for paying salaries, buying specialized equipment, paying for office leases, and more.
Conclusion: Grow Your Business with Chiropractor Business Financing
Whether you're a new chiropractor or you've been active in the chiropractic industry for years, having access to a chiropractic business loan can help you ensure that your business grows.
You can spend it on day-to-day costs, use it as additional cash flow, or hire new employees, just to name a few common examples. How you use your business loan will depend on your practice's individual needs, so be sure to review your business plan before making any decisions.
