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.
How to Use a Chiropractic Business LoanWith 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- Update Your Practice: If your practice is outdated, you can transform it into a modern space with a loan.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 LoansIf 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 LoanWhile 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.