If you’re a chiropractor, you know that owning and running your own business is no small task. Whether you’re just starting out or have been in business for a few years, there are new challenges to face and opportunities to capitalize on in the chiropractic industry.
One thing that can help make things a little easier is securing a chiropractic business loan. But before you go out and start applying for loans left and right, there are some essential things you need to know.
In this blog post, we’ll cover the different chiropractic business loan options available to you and the benefits they provide. So, if you’re ready to learn more, keep reading!
What are Chiropractic Business Loans and How Do They Work?
Business loans for chiropractors come in two types: CBA (Commercial Business Loans) and SBA (Small Business Administration Loans).
A commercial business loan is typically what you’ll need if you already own your practice, have established credit with creditors, and are looking to acquire capital to purchase equipment or supplies, increase your patient base, or hire new employees. On the other hand, SBA loans are geared toward small businesses that haven’t been in operation for very long and typically don’t have a lot of collateral to offer as security for the loan. It’s also worth noting that SBA loans are easier to qualify for since they don’t require borrowers to show proof of business profits to secure financing.
If you’re like most chiropractors looking to obtain financing, your best bet is going to be a CBA loan. They’re typically the quickest and easiest option for acquiring funding. However, if you’re looking for a more affordable financing option, an SBA loan might be the way to go.
What are the Benefits of Chiropractic Business Loans?
Sometimes insufficient funds can put a halt to your dreams of expanding your chiropractic practice. For small business owners, chiropractic loans can provide the needed capital to finance projects to boost their business.
Chiropractic practice financing can be used for several reasons, including:
Equipment Financing
Equipment financing lets you invest in better and new equipment, repair existing medical devices, and buy electronics or other necessary machinery. You can help more patients and improve daily operations with updated machinery. For instance, you can use your small business loan to pay for chiropractic tables, X-ray machines, scheduling software, or thermal imaging technology.
Renovating Your Office
Some chiropractors looking to expand their business want to use small business financing for office renovations or expand to other locations. Expanding the interior space to suit more people is essential to attract and cater to more patients. If you want to change the look/design of your office by adding furniture or fixing the lighting, you can accomplish those by securing a chiropractic business loan.
Marketing Your Chiropractic Practice
Chiropractic business loans can cover marketing efforts, like print advertisements, radio commercials, and newspapers to gain new patients. Digital marketing like PPC ads and social media can also provide enough exposure for business growth. Small business loans can boost your current marketing efforts or give you a head start if you haven’t advertised yet.
Covering Operational Costs
If you’re a chiropractic business that’s just broken into the industry, it can be tough to keep up with daily expenses. A chiropractic practice loan that can cover utilities, rent, and office upkeep so that you won’t remain short of cash at the end of the month. You can also use these loans to hire and train more staff, including front desk employees and medical assistants.
7 Best Loans for Chiropractors
Chiropractic clinic loans can give you the cash flow you need to secure high-quality staff members that will help keep long-standing patients.
Here are the seven best loan options to choose from:
1. Long-term Business Loans
These types of loans are extended to chiropractors looking for significant capital. They’re issued over five years and can be used for any purpose, like buying new equipment or expanding your practice space.
Long-term business loans have strict rules when it comes to eligibility, with lenders carefully examining your credit score and credit history. Some benefits of getting a long-term business loan include:
- Low rates and easy monthly payments
- Repayment options from one to seven-year period
- Upfront cash and an excellent option for working capital requirements
2. Equipment Financing Loans
The chiropractic equipment and even the computers needed for scheduling can get quite expensive. Equipment loans are a great way to access cash flow for state-of-the-art equipment, essential for your patients’ health.
One of the features of this type of financial service that makes it so attractive and beneficial is equipment ownership. You’ll own up-to-date tech gadgets as collateral; once all terms have been met, their ownership transfers straight away from the lender back into the business owner’s hands.
Equipment financing loans have a repayment period between one and five years, and unlike long-term loans, they require little paperwork and a fast application process.
3. Business Credit Cards
It can be tough to deal with everything when you’re juggling patients, from paying monthly bills like electricity or groceries down to making sure that each patient pays what they owe after their visit.
With low fees and interest rates, business credit cards allow chiropractors not only in-person purchases but also online shopping, so as long as there’s enough time before payday comes around again, you’ll always have some cash at your fingertips.
4. Business Lines of Credit
Credit cards and business lines of credit are quite similar in terms of providing quick cash. But the main difference is that you can draw funds from your business line without worrying about fees or interest rate changes. You can repay your fees at any time.
Business lines of credit also offer lower interest rates and overall lower costs and fees than credit cards.
5. SBA 7(a) Loan Program
The SBA 7(a) loan program is an excellent option for small business owners who need their first finance from this government agency. This type of general-purpose financing gives you plenty of flexibility with how your loans can be used.
The Small Business Association offers many programs explicitly designed to meet individual needs, including bankruptcy relief services if something goes wrong (which often does). Keep in mind that these loans shouldn’t be used to cover buyouts, delinquent taxes, or reimbursements for business payments.
6. SBA 504 Loan Program
The SBA 504 loan is designed for large capital needs, like buying real estate or significant renovations. This capital project requires fixed assets, like commercial properties or construction projects.
The bank requires that you spend the loan on larger-worth investments in commercial real estate owned outright (or with partners), as well as any renovations regarding those projects.
7. Merchant Cash Advances
Although not technically a loan, according to some MCA providers, this option can be used to acquire equipment and supplies for your business. The money is provided as an advance on future credit card transactions, and the repayment period will depend on how much you owe.
If you want to apply for a merchant cash advance, you have to provide monthly transaction data, which means filling out forms that will include all your transactions. Since the transaction data is processed automatically, you won’t have to worry about sending receipts or invoices.
Apply for a Chiropractic Business Loan
Now that you have a better idea about the kinds of loans available and how they can benefit you, let’s talk about the application process itself.
Before you start applying for chiropractic business loans, it’s a good idea to get familiar with the lending institutions you’re interested in working with. This way, you’ll know what they require from applicants and be able to determine which of them best fit your needs and goals.
The three basic steps to getting your loan:
- Determine the type of loan you’re looking for
- Review requirements for that type of loan
- Prepare your business to meet lending institution requirements
These steps are simple, but they can save you a lot of time and hassle in the long run. So, spend some time getting familiar with each step.
If you want to save time, money and make sure your chiropractic business loan application goes as smoothly as possible, give Select Funding a call. We specialize in working with chiropractors just like you, helping them acquire the financing they need to succeed.
