Can a chiropractic business obtain financing?
Any business, including a chiropractic business, can obtain financing for their start-up costs or other qualifying business expenses. There are a variety of lenders offering small business loans and other types of financing for entrepreneurs and business owners to take advantage of.
Many loan programs are backed by the Small Business Administration which gives lenders peace of mind while granting business owners access to lower rates, less stringent application requirements, and more beneficial loan terms.
How can a chiropractic business loan be used?
A chiropractic business loan can be used in a variety of ways including upgrading your practice, investing in new technology, growing your business, covering daily operating expenses, and engaging in advertising or marketing campaigns. In fact, you can even use the funds from most small business loans to pay a salary to yourself or participate in business debt consolidation.
Whether you are starting a new business for the first time, expanding your existing business, or simply trying to cover operating and staffing needs, a small business loan can be a huge help.
Types of chiropractic business financing options
There are several different places that chiropractic business owners can turn to when deciding to finance their next business venture. These include:
- Online business loans: Business loans from online lenders offer a variety of advantages to the consumer including quick funding, relaxed loan requirements, lower rates, and less fees.
- Merchant cash advance: While this form of short-term financing is considered a last resort for many, it has its perks. Applicants with poor credit can qualify for an advance without the need for a down payment or collateral, although interest rates will be high.
- Business line of credit: Many business owners prefer to use credit instead of loans, due to the greater flexibility of having ongoing access to funds. While interest rates can be variable and monthly payments may be higher, the cost is worth it to some owners.
- Equipment financing: Another alternative option is to use in-house financing programs for your equipment purchases. Most vendors offer some type of financing or credit for business owners to take advantage of. Rates may be higher or lower than using a business loan, so be sure to shop around and compare your options.
- SBA loans: One of the most popular ways to finance your business expenses is to utilize a loan program that is run through the Small Business Administration. While the SBA does not offer loans directly, it guarantees them, so look for an SBA loan from a participating lender. The SBA offers a variety of loan types for small business owners ranging from microloans to real estate loans.
Pros and Cons of chiropractic business financing
For any business owner, there are pros and cons of utilizing financing to cover your business expenses. Chiropractic businesses are no exception. The pros and cons include:
- Opportunity to grow your business
- Improve cash flow
- Fixed monthly payments
- Competitive interest rates
- Flexible loan terms
- Generous loan amounts
- Taking on debt
- Financial turmoil if you are unable to repay
- Lengthy approval process
- Financing costs
What is the cost of obtaining a business loan for my chiropractic practice?
In addition to the loan principal and interest, you may encounter various loan fees when applying for a small business loan. There may be an application or underwriting fee, loan origination fee, prepayment penalties, late payment fees, annual fees, and more.
Take some time to shop around and do your research before applying for a small business loan. Comparing rates and loan terms before you apply can save you a good amount of money over time. Getting prequalified is also a good idea for business owners to figure out the total cost.
Tips for growing your chiropractic business
There are a few basic tips to keep in mind for growing your chiropractic business. In order for any business to grow, you will need to spend an appropriate amount of money on marketing and advertising. The ability to cover increased staffing needs can also make a big difference in being able to grow and expand your chiropractic business. With more staff, you can take on more clients and bring in more revenue. Whatever you need to expand your business, a small business loan can provide the funds you need to take it to the next level.
How to qualify to get your chiropractic business financed
To qualify for small business financing, your chiropractic business should have a few things lined up. Lenders want to see a detailed business plan, solid financials, and a good credit history.
Each financial institution and loan program has its own qualifications that applicants must meet. You may encounter business loans offered by your local bank or credit union, as well as from online lenders. Wherever you choose to apply, you will need to meet the application requirements of that particular lender or loan program.
For example, the SBA 7(a) small business loan program provides business owners with a checklist of documents needed in order to complete your application. This checklist includes:
- Borrower Information Form
- Personal Background and Financial Statement
- Business Financial Statement
- Business Certificate/License
- Loan Application History
- Income Tax Returns
- Business Overview and History
- Business Lease (where applicable)
- Additional Documents (if purchasing an existing business)
Applicants with poor credit may benefit from applying for their financing from online lenders. These companies typically have less stringent requirements than traditional bank chains.
How fast will I get funding for my business?
How fast you get funding for your business depends on the type of loan you apply for and how quickly you can come up with the supporting documentation. Applying for a business loan is not quite as simple as applying for a credit card or personal loan. You will most likely need to provide a detailed written business plan, a profit and loss statement, and other financial information. The lender will also check your credit score to make sure you qualify.
Online lenders typically are able to get you through this underwriting process much more quickly than traditional banks. Big banks are notorious for dragging their feet with the funding of business loans and may even deny you after you have waited for weeks. So if you are in need of fast cash in a hurry for your business expenses, consider using an online lender like Fundbox. You can access offers from Fundbox and other top-rated lenders at PrimeRates.
How to get a chiropractic business loan
To get a chiropractic business loan, you will need to research the loan requirements from the lender you have chosen, submit the online or in person application, and provide any requested supporting documentation. You will likely need to wait several business days, and even a few weeks or months depending on your lender. Once you receive a loan decision, you will receive your loan proceeds as one lump sum if you are approved.
Taking the time to get prequalified through a few different lenders before you apply can help you save time waiting for a loan decision back from a bank who may not actually approve you.
In conclusion, a small business loan can be a great option to start or grow your chiropractic business. Funds can be used to pay for anything from your lease to staffing needs, and with many different financing options out there to choose from, you should be able to find a loan program that works for you. With a little bit of extra research and rate comparison, the right small business loan can help you take your chiropractic office to the next level.
One of the best places to check chiropractic business loan offers is through PrimeRates. PrimeRates can simplify the loan shopping process by allowing you to receive personalized loan offers, with rates and terms you are actually likely to receive.
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