Any chiropractor looking to buy an existing business may have many questions about how to get the right financing to complete your transaction. Obtaining a loan can be particularly challenging for borrowers who are typically 25-30 years old, may or may not be married, may have children, may not own a home, and have little to no investments but does have a lot of student loan debt.
There are many financing options to fit your budget and personal needs. Financing through your local bank is a popular option which can include preferred lenders, certified or general Small Business Association (SBA) lenders, and non-SBA lenders. Which option is right for you? Learn about your local bank options below!
“Preferred” lending banks have done a certain number of transactions that have had little to no default on repayment. The federal government then gives these banks the authority to underwrite and approve the loan internally without sending the application to the SBA for final approval.
A vast majority (95% or more) of chiropractic loans are funded using SBA loans.
With certified, or general, SBA lenders, the bank has the authority to start the transaction, approve to loan at the bank level and complete the underwriting. Then they’ll submit the financing package to the SBA for final approval. The cons of certified lenders include:
Non-SBA lending means the bank will provide funding without the SBA being involved. Conventional lending in Chiropractic business transactions is rare. The SBA guarantees the bank repayment of a significant portion of the loan if the small business owner should default.
Occasionally, one will get a conventional loan (non-SBA), but the buyer will have to have sufficient collateral, such as a house, car, or investments, to get approval.
Make sure you ask the right questions before you decide on your lender. First, we recommend asking your banker if they’re a preferred lender. If they say anything other than “YES,” carefully reconsider if you want to use that lender, no matter how friendly they are or the personal connections you have to them. The SBA guarantee enables banks to provide people and businesses with funding that would not typically receive funding. At the end of the day, make sure you choose the right lender for you!
Practice Brokers, Inc. can not only demystify the loan process within the chiropractic industry, but also assist in securing financing for the purchase of a chiropractic practice. Learn more about where to get financing here.
Our services include:
And once the loan is approved, we help with:
A financial procurement fee between 1½ and 3% is charged to the buyer and is typically based on the size of the loan amount secured. No fee is paid if we are unable to help the buyer secure financing.
We make dreams come true.
There is no cost or obligation during the initial consultation. We do not believe in having to open your wallet when trying to find the right broker. Once all parties agree to begin working together, that is when fees will occur. We have separate fees for business appraisals, brokering, and financial procurements which are all discussed BEFORE any party moves forward. Appraisals are paid for upfront and based on set fees, while brokering and financial provisions are paid at closing and based on a percentage. We only earn a commission when we successfully close a deal!
Discovery
Learn the process of buying and selling a practice.
FAQs
Addressing any potential questions or concerns.
Next Steps
If we are a good match, setting the plan for what is next.
If you have been wondering how much your practice is worth, how to sell your practice, or how to buy a practice, we can answer any questions you may have. We have experience with various types of practices and experience levels. Please explore our site to learn more about our services. We welcome you to contact our office and ask about business appraisals, selling your practice, buying a practice, or our listings.