Business Loans for Chiropractors

How can I find capital financing for chiropractors?

One side effect of the increasingly sedentary lifestyle that so many Canadians lead – long work days spent at computer workstations, followed by evenings sitting looking at a smartphone while the television is blaring in the background – is that people are reporting ongoing back issues. Some of this has to do with the extra weight that some Canadians are carrying around, while it also has to do with the poor posture habits that develop during such a day – slumping over a monitor, sitting with your head down looking at a small smartphone screen, and the like. What does this mean? If you’ve completed your training as a chiropractor, you should have plenty of business opportunities waiting for you.

Why is it so difficult for chiropractors to find funding?

The training that chiropractors receive is costly and lengthy, and once you have finished it, you will likely be ready to take on the challenge of working for a practice. After a while, though, you may be ready to go out on your own. You will likely have worked for a couple of years now and perhaps have built up enough of a regular clientele that trusts you to move to your own practice and bring at least some of them along. However, this is a step that requires more money than simply joining an existing practice, as now you’ll have your own overhead to cover, your own staff to pay.

But if you have already made it through that point, saving up to open your own office, you may find that the money you invested has brought you to one of a couple different places. Your first nine months of existence as a private practice may have been gangbusters, and you have to turn patients away. You’re thinking about expanding into the adjacent office space, as the law firm that was there has decided to relocate. To do that, though, you’d need to bring in new furnishings and prepare for a higher rent. You’d also probably need to bring on more staff to occupy the existing space.

Or you might find that the savings you put together to open your chiropractic practice were enough to get things up and running, but you’re always behind the 8-ball when it comes to liquidity. If you ever hit a funk, you’d be in trouble; for now, there are plenty of clients to pay the bills and then a little some, but if you hit a chance to expand, you’d have to say no – and you find yourself getting pretty low in your account every payroll cycle. Every month is a little better, but you still would feel better with a bit of a cushion.

How do the banks make it hard for chiropractors to secure funding?

Banks that offer chiropractic business loans often make their borrowers fill out a ton of paperwork – tax returns, bank statements (personal and business), credit reports and inventories of other assets. Then they make them wait for a week, or even longer, to find out if they even have preliminary approval. If the loan finally goes through, funding can take as long as a month from the initial application, and that’s when things go smoothly.

One factor that comes up with a lot of chiropractor business loans – as well as for loans in other industries – is that banks will only lend to businesses who have so much cash in hand that it doesn’t seem like they really need the money. If you have any blemishes in your personal or business credit profile, and if you don’t have proof of a steady stream of income, then you won’t get approval for your loan. Of course, if you’ve been open for less than a few years, you may not have built up much in the way of business credit, and you may not have an income stream that is long enough to make the bank happy.

How can chiropractors find capital financing?

So what are you supposed to do? You could keep plugging away with that small cushion, or you could keep your business running in that smaller space, saving until you have enough to fund the whole expansion by yourself, but by then another business could have moved in next door, which means that if you want to expand, you have to find a whole new building – which will make your move more expensive.

It’s dilemmas like this that motivates Best Bridge Capital. There are so many small business owners throughout Canada & the United States that don’t have access to the capital that they could really use, because the banks just don’t want to relax their lending rules, that we saw an opportunity to connect customers who need merchant capital with a niche funders – those who want to provide the sort of financing that entrepreneurs need, with the flexibility that recognizes the demands of a small business.

How can chiropractors get a merchant cash advance?

You’ve probably heard of merchant cash advances before, but we have taken the whole process and streamlined it to make it easy for customers to find the funding that they need. We take one application from each customer along with key verification documents such as ID, business license, merchant statement history, bank statements, and copy of business lease if applicable. For loans over $75-$100K; financials will be required. Personal and Business Credit is also reviewed…. it is a factor, but the banks look a lot harder at your score than our lenders do. Our lenders focus on the amount of money that you have coming in, because that’s where your repayments will come from.

Once you’ve sent in your application, you’ll likely get an offer back from one of our advance providers that makes you forget all about chiropractor business loans. Your offer will have three important numbers: your advance approval amount, the factor rate and the repayment rate. The advance amount (obviously) is the dollar amount of the check that you will receive (less any fees). Then comes the factor rate (usually between 1.15 and 1.45, and the better your credit score and the stronger your income stream the lower this will be), and the repayment rate (the percentage of your daily or weekly receipts that will go directly to the advance provider to start settling your amount owed).

Do you have a funding example?

Consider this example. You get approval for a $250,000 advance, with a factor rate of 1.2, and a repayment rate of 20%. If you agree to those terms, then you’ll get a check for $250,000 (less fees), and you’ll pay back $300,000 ($250,000 x 1.2). Instead of a term, such as two years or four years like a standard loan… you get a repayment rate. The number 20% means that, each day or week, depending on the terms of your provider, 20% of your receipts will go directly to your provider. In some cases, this comes only from your credit and debit card receipts, while other providers have different ways of taking the percentage.

How fast can I receive the funding?

The upside is that you get an approval decision quickly (often with a couple of business days, with funding in a week in most cases). You also have flexible repayment terms – if you have a big day or week, you’ll pay more, but if you have a slow period, you pay less. That keeps you from facing a rigid payment to make every month. While there’s no benefit to paying the amount early – there are also no added fees if it takes you longer than you thought to pay the due amount back.