Financing For Chiropractors
We are now at a major turning point in society. The general population is no longer willing to settle for an opinion from a rude doctor about going on a weight loss pill, taking a narcotic pill to fix a situation, or to jump into surgery without exploring other options. Many people today are experiencing confusion as to where to go for trustworthy, professional advice for weight management, exercise, and lifestyle counseling. American’s today are valuing their health more than ever before, resulting in more people wanting a more holistic approach to solving and preventing ailments – which is why we are now seeing chiropractor offices on every street corner. Say goodbye to taking a pill for every little issue, because the most favorable aspect of chiropractic work for many patients is the drug free and surgery free alternative to healing naturally.
Studies are constantly being conducted to show the major health benefits associated with chiropractic work, including relief (or even permanent treatment) from back pain, headaches, ear infections, neck pain, arthritis and joint pain, scoliosis, asthma, blood pressure, healthy pregnancy, organ function, surgery prevention, gastrointestinal issues, and so much more; and for those of you who did not know, lower back pain and neck pain are the two most prevalent disorders in America today, accounting for most disability patients in America. But luckily, chiropractors are making an effort to spread the word about this misrepresented profession. People are completely misinformed about the work of chiropractic’s, largely in part from major medical associations that refuse to acknowledge the true impact chiropractic work can have on the population.
With most insurance plans implementing coverage for chiropractic services, all I have to say to people who are filled with skepticism about exploring this option – don’t knock it ‘til you try it!
Chiropractic Industry Data and Statistics
One of the most important statistics to remember about the chiropractic industry today is that during a chiropractor’s formal education and training, they are required to have at least a year of formal nutritional training – which is a huge gap between the 2.5 hours required for medical doctors to complete of formal nutritional training. When dealing with the obesity epidemic at hand in the United States today, many primary doctors refer patients to a dietitian, but what they fail to tell all of their patients is: all dietitians are a member of the American Dietetic Association and receive most of their training and information through the ADA. The ADA received over $3.2 million in 1995 from Coca-Cola, M&M, Mars, McDonald’s, Sara Lee, The Sugar Association, and the National Livestock and Meat Board – I would consider this a pretty biased way of monitoring health. This is a major contributor to the growing trend of chiropractic’s, and why chiropractors across the country are reaping the rewards of their holistic approach to health and wellness.
Chiropractors today have such a diverse field of expertise’s to incorporate into their current practice by implementing many new practices such as acupuncture, life extension (which is basically proper health through diet and exercise), and ergonomics and industrial consulting (since all of you chiropractors are able to legally diagnose and treat patients!). There are so many exciting advancements happening in the chiropractic field today, but in order to stay ahead of the growing market, chiropractic businesses will need to start staying on top of the current industry trends.
Trends in the Chiropractic Industry
The chiropractic industry is experiencing a multitude of shifts today that are changing the views of many people in regards to the holistic health approach. The continuously changing healthcare market is drastically effecting the chiropractic industry and the affordability of the procedures for many individuals, as well as the technological trends and social media importance that is now becoming a necessity for all chiropractic practices. In order for chiropractors to maximize their patient retention and patient generation, it is vital for all chiropractic businesses to stay on top of the constantly evolving chiropractic industry trends.
- In the age of technology, many patients are utilizing reviews when picking a new chiropractor or specialist, so making sure that online reputation is a priority in the chiropractic industry is essential. In addition to online reputation, chiropractic practices that are not creating efficient websites and mobile websites will suffer.
- Attracting new patients and retaining current patients is a struggle felt by many chiropractors today. The competition in the chiropractic industry is too strong to have average assistants, weak customer service, and terrible marketing. Now more than ever, customers are demanding a great experience with phenomenal customer service, so if a chiropractic practice wants to see reoccurring patients and gaining new patients, then making customer service and quality care the number one priority is essential.
- Social Media and marketing is the biggest issue being faced by chiropractors everywhere today. Chiropractic studies are showing that 84 percent of chiropractors in the United States today are doing their own marketing, 9 percent of chiropractors are using their administrative assistant, 3 percent hire a third party marketing company, and 4 percent use another service. However, it is also shown that over 44 percent of chiropractors allocate around 5 hours of time towards building an effectively social media presence a month – and for any business owner in any industry that has successfully built a social media presence with only spending 5 hours a month towards marketing, please share your secret with the rest of the world. In a society dominated by social media and marketing, chiropractors must start allocating more time and money towards these necessities to start effectively building repeat customers. Basically, any chiropractor still using word of mouth as their primary source of generating new patients must transition into the digital media age to stay successful.
- The main reason people continuously seek out chiropractic help is the message that is promoting through the medical practice of chiropractic care – a healthy, holistic approach to treating and preventing pain and illnesses. Many chiropractors also promote healthy lifestyles through healthy eating and nutrition, which is an area of the professional medical field that has left many people looking for another option. Chiropractors looking to reach more clientele should consider continuously promoting the holistic approach to health that the chiropractic field has to offer.
- Another major trend being adopted by many chiropractic businesses is the addition of acupuncture treatments in conjunction with chiropractic care. Acupuncture has been used for centuries in other countries, but it is a more recent trend in the United States. More and more studies are starting to show the natural, holistic health and wellness benefits of acupuncture, so many successful chiropractors are starting to implement a treatment plan for their patients that include both acupuncture and chiropractic’s.
Types of Chiropractic Loans
|Bank||6-10%||3-7 years||14-30 days|
|SBA||6-10%||3-7 years||10-30 days|
|Line of Credit||5-15%||1 – 3 years||7-30 days|
|Alternative||6-25%||1-5 years||5-7 days|
|Cash Advance||1.16-1.55||3-24 months||1-3 days|
|Invoice Finance||1-2% weekly||1 – 90 days||1-3 days|
Conventional Bank Loans For Chiropractors
Bank loans are always the top choice of any business owner seeking financing. If you own a chiropractic practice with great credit and established profitability then you could be a good candidate for traditional financing. While the process is never easy (and often time consuming) its well worth it because you will have the lowest rate facility available. On top of that you will be able to use the traditional loan for nearly any use, including purchasing a business or commercial real estate, working capital, debt refinancing, etc..
- Rates: 4-10%
- Terms: 1-5 years
Chiropractic Practice SBA Loans
So you’ve tried the conventional route but weren’t able to obtain financing from a bank or credit union. The next best option to obtain traditional financing is to secure SBA financing. SBA loans are a type of financing provided by banks and credit unions in which the government agrees to cover a large part of their losses if the chiropractic business fails to repay their loan. By offering this SBA-enhanced guarantee, the lender is exposed to less risk and are more likely to lend.
- Rates: 6-8%
- Terms: 3-25 years
Alternative Chiropractor Loans
It goes without saying that business owners want the lowest rates available. They also know that sometimes simply obtaining necessary financing may not get you the lowest rate available. When banks are unwilling to lend, an alternative chiropractic lender just may. Alternative loans have a much easier approval and funding process than conventional lenders, with financing taking just days, not months like banks. But with easier funding comes higher rates, so be prepared to pay more.
- Rates: 9-25%
- Terms: 1-5 years
Leasing Equipment For a Chiropractic Office
Medical office equipment is never cheap. Unless you have substantial cash-on-hand you’ll probably need to seek some sort of financing to obtain the equipment. While a loan may be the best choice for your practice, another option may be to simply lease the equipment. Leasing is an easy type of financing in which the lender will purchase the equipment for your practice, and then lease it to you for a period of time.
- Rates: 6-20%
- Terms: 1-10 years
Chiropractic Office Cash Advance
Lets say your practice doesn’t have sufficient time in business to obtain more traditional options. Or maybe your credit has taken a hit lately. Or maybe you just need financing as quickly as possible (24-48 hours). During those times a cash advance may be the best option. Cash advances for businesses come in two forms: ACH and MCA cash advances. ACH advances are the sale of the chiropractic office’s future bank deposit revenue in exchange for upfront financing (with a discount to the lender). A merchant cash advance (or credit card processing loan) is the sale of future credit card transactions in exchange for financing.
- Factor Rates: 1.16-1.50%
- Terms: 4 months – 2 years