Exploring Business Loans for Chiropractors, Physiotherapists and Osteopaths

Besides spending years gaining their skills and knowledge, many chiropractors, physiotherapists and osteopaths break out on their own to start their own practices. Business loans make it possible to cover all the expenses in the early stages of professional practices and other expenses as the practices develop. Here we’ll cover some of the reasons for financing options for chiropractors, physiotherapists and osteopaths.

The right equipment is one of the keys to having an effective and successful practice. Normal wear and tear and advances in technology make it necessary to upgrade equipment from time to time. Specialised chiropractic, osteopathic or physiotherapy equipment can be quite expensive. For example, basic chiropractic tables start at around $3,000. This is when business loans are needed.

There are times when a practice will have temporary cash flow issues that need to be solved. Short-term loans, such as unsecured business loans, can provide the working capital needed to cover shortfalls.

A successful practice can soon run out of space. In addition, keeping waiting areas and practice rooms up to date will help you maintain a modern and professional image. When renovating practice premises, chiropractors, physiotherapists and osteopaths need business loans to finance the work.

Complementary medicine professionals need to constantly upgrade their skills. Although continuing education is a necessary component of any practice, it can be quite expensive. A business loan can make it possible to upgrade and expand professional knowledge and skills.

You can have the professional skills and modern premises but you still need to market to attract new patients. An effective marketing campaign can help to start and grow a practice. A variety of short to medium term loans can be used to fund marketing campaigns for chiropractic, osteopathic and physiotherapy practices.

Whatever you choose to use a business loan for, you will want to ensure that you get the appropriate return on investment to make it viable. Use our business loan calculator to get an estimate of principal and interest repayments.

With a business overdraft, you can run a negative balance on your transaction account up to an agreed limit. You pay interest on the amount of money you are using, not on the total amount. You also pay an establishment fee and monthly fee while the overdraft is open. With an overdraft, you can run a negative balance on your account as long as you are able to pay interest. When you increase your revenue, you can lower the amount of the overdraft or go back to a credit balance in your account. With higher interest rates, business overdrafts are seen as a short-term solution to solve cash flow needs.  Read more about business overdrafts.

With a business line of credit, you get a set amount of funds to draw from. Like a business overdraft, you only pay interest on the funds you are using. There is no set payment schedule but you can pay back what you have drawn when your finances change and you have the funds. The minimum amount of a business line of credit is higher than for a business overdraft and the interest rate is usually lower. Read more about business lines of credit.

A business credit card is a finance option for physiotherapy, osteopathic and chiropractic businesses. Most credit cards have an interest free period from the date the charge was made. If used carefully, a business credit card can be used for free short-term finance when you pay within the interest-free period. Business credit cards usually have high interest rates, so you will not want to carry a large balance because the interest will add up. Read more about business credit cards.

There are a number of finance options for purchasing equipment for complementary medical practices. With some equipment finance options, the item purchased serves as collateral for the loan, so no other security is required. Read more about equipment finance.

A bank term loan is a short- to medium-term loan and is what many people think of when considering small business loans. You make set payments on a regular basis, such as monthly, until you reach the end of the term. One shortcoming with bank term loans is the amount of paperwork that needs to be submitted. Another is that it can take as long as two months to find out if you have been approved for the loan. This is not very practical if you have an urgent need for business funding.

A commercial loan is a long-term long-term used for large purchases. These could include a major renovation, buying your premises, or purchasing an existing practice. A commercial loan is secured with a residential or commercial property. With the ability to fund major long-term projects, a commercial loan can help chiropractors, physiotherapists and osteopaths improve and grow their practices. Read more about commercial loans.

Unsecured business loans have been growing in popularity in recent years with healthcare providers. The main reasons are the speed and ease of getting an unsecured business loan. Fintech (financial technology) companies use leading-edge online technology to simplify the process. With Moula, for example, the application takes around 10 minutes to compete and you can get an answer on approval within 24 hours.

With no collateral attached, the interest rates for unsecured loans are higher than for secured loans. However, the fact that these are short-term loans means that the overall interest paid over the term of the loan could be lower than the interest paid on a long-term secured loan with a lower interest rate.  

Learn more about unsecured business loans from Moula.

For a comprehensive overview of business finance options, see our Complete Guide to Business Loans.