Chiropractic start-up financing options for launching your first practice

Additional chiropractic start-up financing options to consider include insurance companies, employer benefits programs, or debt consolidation products

Opening a new chiropractic office requires a fair amount of capital. Whether you plan to build, buy, or lease the space needed, you will likely have expenses related to the physical building and surrounding property, chiropractic equipment and devices, office equipment and supplies, hiring and training staff, and more. Unless you have a stack of cash set aside for your new practice, you’ll likely have to finance some or all of these costs. Understanding the chiropractic start-up financing available is the first step to selecting the best one for you.

Chiropractic start-up financing options

Chiropractors launching a new practice have a variety of financial sourcing options.

Some to consider include:

  • Small business loans. You can reach out to a bank or credit union and ask it for the monies needed to start your practice by requesting a business loan backed by the Small Business Administration (SBA).
  • Medical practice lending. This chiropractic start-up financing option is designed specifically for health care professionals and medical service providers looking to start or grow their businesses.
  • Private equity investment. You can also secure financing from investors who want to invest or secure some level of ownership in your non-publicly traded practice.
  • Commercial line of credit. This form of financing doesn’t usually require you to have any type of collateral and offers a revolving line of credit.

A small business loan tends to be the most appealing, explains Elena Jones, credit and personal finance expert and founder of Finance Jar, a company that provides financial advice and guidance. Why?

“It generally offers fixed periods and more competitive bond yields,” Jones explains, “as well as more alternatives and possibilities than non-SBA lending institutions. Additionally, some SBA loans tend to have less strict equity stake and reserve requirements than do classic credit facilities. Because of this, SBA-backed lenders can be a fantastic tool for both beginning and seasoned chiropractors looking to grow their practices.”

These aren’t the only options either.

“Chiropractors may be able to tap into different sources of funding,” adds Paw Vej, COO of helps consumers and business professionals compare financial sourcing and service options.

Vej shares that additional chiropractic start-up financing options to consider include insurance companies, employer benefits programs, or debt consolidation products.

“Each type has its own benefits and disadvantages,” says Vej, “so it’s important to research each one carefully before making any decision.”

Selecting the best financing options for you

To pick the best chiropractic start-up financing option for your new practice, it helps to know how each is different. This gives you a better idea of which may be more suitable for your situation and needs.

“When it comes to small business loans, the size of the loan is usually based on the size of your company and its profitability,” explains Vej. “Medical practice lending tends to be more targeted towards practices that are in good standing and meet specific criteria.”

“Private equity investment offers a higher rate of return than traditional financing options,” Vej goes on to say, “but there is also a greater level of risk associated with this type of investment. Lastly, buying into an established practice can be a great option for those who want to increase their involvement in a certain field or region without having to start from scratch.”

If you plan to borrow the monies you need, Mario Delgadillo, VP and director of banking division strategy at Baker Boyer Wealth Management, offers additional factors to consider when choosing a lender.

“Make sure they understand your industry, its people, and potential clientele,” says Delgadillo. Also do your research to ensure that the lender’s loan products are competitive, that it has a reputation for providing high-quality service, and that its employees are experienced.

Delgadillo recommends also looking at:

  • Whether the lender has been present in your community and industry for a long time
  • What type of value it brings to the business relationship, beyond simply providing a loan
  • If it is committed to confidentiality, ethics, and trust
  • Does the lender communicate clearly, regularly, and openly?

Before securing financing

No matter which option you decide, there are a few additional steps you can take to make the process of securing financing easier. One is to create what Delgadillo calls “loan-ready financials.”

Delgadillo recommends that you prepare and compile the following before even visiting your lender:

  • A solid, comprehensive business plan
  • Business formation documents
  • Personal financial statements and tax returns

Delgadillo also recommends forming your team before securing financing. In addition to yourself and your office staff, “you also need a CPA, bookkeeper, and a business attorney who is qualified in your industry,” Delgadillo says.

To learn more about your financing options, or to get help based on your specific situation, you can reach out to the SBA for individualized assistance. The SBA can also assist you in finding a lender via its online Lender Match search. Just answer a few questions about your new chiropractic practice and it can connect you with a few lending options.


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