Finance for Chiropractors
How the right finance can help build your chiropractors practice
Talk to Rangewell – the business finance expertsAs a chiropractor, your practice is also a business, and every business needs financial support to grow and thrive. At Rangewell we recognise your professional status, and we work harder to find you better solutions.
A successful chiropractor must operate a successful business as well as a practice, but it may be very lucrative.
An established Chiropractor can earn upwards of £50,000 a year. But to achieve this level of income, you must be able to call on finance.
Whether you are starting up as a chiropractor, taking over an existing practice or eager to make the most of your existing practice you will need funding. Premises, staff, equipment and every day running costs all require a cost-effective source of cash.
At Rangewell, we know the challenges of setting up, buying or growing your practice, because we work with chiropractic professionals across the UK – and we help find a wide range of solutions for them.
Understanding your funding options
You may need to find the right type of funding option to allow you to:
- Start your own practice
- Buying a practice
- Partner buy-ins and buyouts
- Set up a practice
- Franchise Purchase
- Leasing premises
- Buying Freehold property to operate from
- Buying the premises you operate from
- Refurbishing your premises
- Buying New Assets
- Buying Second Hand Asset
- Hire Purchase
- Vehicle Purchases
- Working Finance
- General Expansion and Growth
- VAT and Tax Loans
- Partner Buy-ins and Buyouts
- Goodwill Loans
Starting your own practice
There are several ways to start working as a Chiropractor with your own practice. Each one will make its own financial demands.
Buying an existing practice will mean a major investment. You will need to study the historic performance of the business to understand its current value. The patient base, the premises and equipment, and the value of any NHS or sporting contracts need to be taken into consideration.
The purchase price will reflect this, and a successful practice in the south of England could easily change hands for upwards of £100,000. This is a large sum, but by spreading finance over 20 years borrowing can be a practical proposition. A number of solutions exist, including Secured Loans. Secured Loans are often used to borrow large sums upwards of £250,000, and are ‘secured’ because the lender will require security in case you cannot pay the loan back. This could be your home or your business premises.
You can have longer to repay than other types of loans. Terms of up to 20 years are common. You can also enjoy lower interest rates than with other types of lending, meaning monthly repayments can be lower and easier to fit in with your cashflow.
Partner Buy-ins and Buyouts
If you are thinking of buying into a large practice, you may need to do so as a partner - or buy out a partner who may be retiring. Buy-in and Buyout finance recognises the challenges and provides funding tailored to help you make full use of the opportunity. It could also provide a solution if you are considering buying out a competitor.
Setting up a new practice
Setting up a practice could mean less outlay. There will be no goodwill to take into consideration, but costs will still be substantial. There will be premises to pay for – most likely with a rental agreement in the first months and years. A receptionist will be essential, and you are likely to need an assistant. Electricity and business rates will have to be paid for.
Remember, simply opening the door for business will not bring in patients. You will need to budget to advertise your presence and to keep afloat while you build a patient list. You need to invest in marketing, establishing a local presence and setting up a website.
Buying a franchise
Franchising is starting to become a factor for the UK chiropractic profession. Most will include a substantial initial franchise fee, and there will be the usual costs for premises and equipment purchases, initial stock, and possibly vehicle costs. There may be a monthly fee and additional expenses to consider once you are up and running, especially in the crucial first few months of operation. Conventional business lenders, such as banks, may not be able to help, as your business is technically a start-up, lacking a business history.
A specialised Franchise Loan package may be essential.
Funding for your premises
Premises in a good location, ideally with parking and public transport nearby, will be a major cost for your practice.
You will need a minimum of around 100 square ft for each treatment room, and probably twice that for a waiting room. Factor in space for storage, reception and circulation, and you will have a substantial suite to pay for. More space than you need might be an investment for the future. Another room for a junior practitioner could let you grow your patient list.
You may need to borrow with an Unsecured Loan for the deposit on a long-term lease. Alternatively, you might want to consider a Commercial Mortgage. Commercial Mortgages can help you buy your surgery or even an existing practice. It is uneconomic to borrow less than £50,000, and some lenders have a minimum of £75,000 or more, but there is no set upper limit.
We frequently help practitioners buy their freeholds, helping acquire an important asset for the practice.
You need to present a stylish and modern interior to bring in patients. Find out more about finance for refurbishment.
Buying your equipment
You will need to equip your business. You can’t do much without a chiropractic bench. But although you may already have the specialised equipment you use every day, don’t forget that you’ll also need all the items that are essential for running a business. A desk, a chair and a computer are the minimum you will need to budget for.
At Rangewell we can help arrange Asset Finance plans. These could make it easy to afford the equipment you need by spreading the costs. These items may be new, although you may be able to save by buying some second hand. You might also consider leasing some items.
If you need equipment that you want to go on giving service for years, Hire Purchase can provide the simple solution.
Hire Purchase is the simplest type of Asset Finance. You pay a deposit plus monthly instalments over a fixed term, between 12 and 72 months, after which the equipment becomes yours. Payments are fixed, making it easy to plan ahead and to arrange an agreement that is tailored to your monthly turnover and budget.
If you want to use the latest equipment without the responsibility of owning it, leasing will give you the freedom and flexibility you need. There is usually no upfront cost to find, meaning that you can bring the latest equipment into your surgery without delay.
Leases can make higher cost items, such as x-ray systems, more affordable by spreading the cost over their economic life. You pay a monthly rental charge to use the asset, which will cover all the costs such as maintenance and repairs. A lease may ideal for sophisticated technical apparatus which has a limited life, or which you may want to replace when new technology becomes available – helping you keep ahead of your competitors, and letting you offer your patients the latest treatments.
If you need a car or van to visit clients, Contract Hire can be the most cost-effective Asset Finance solution. See how Asset Finance and Vehicle Finance could help you cut the cost of the vehicles you need
New or used?
Good quality used equipment can be a sound investment, especially if you are setting up a new practice and funds are tight. However, many professionals miss out on the potential savings because they believe they need to find cash to pay for it.
At Rangewell we can help you spread the cost of used as well as new equipment with Asset Finance. The terms and rates we can secure are often better than those offered by equipment suppliers, and we may be able to help arrange a single agreement to cover all your equipment needs.
Refinance your existing assets
Your practice may have value tied up in assets. Asset Refinance lets you release that money, while still having full use of your assets. The finance company will buy the asset - such as your x-ray equipment or your chair - from you, providing you with the cash sum you need. They then let you buy the asset back from them, with a new finance arrangement.
It allows you to use your cash again to reinvest elsewhere in your practice. Alternatively, a refinance agreement can help find you a better deal on an existing piece of equipment to reduce your monthly outgoings.
Tax is an issue for every business. A large quarterly VAT or annual tax demand can cause problems with your cashflow, particularly when it falls at the same time as other costs.
Tax Loans help you to spread the cost of your tax demands into affordable monthly payments, helping ensure that ensuring that your business does not have to go through a cashflow drought.
Benefits of a Tax Loan:
- Better control of cash flow
- Fixed monthly payments
- Quick and simple to arrange
- Avoids issues with HMRC and potential penalties
Working Capital Finance
Working Capital Finance is designed to boost the working capital available to a business. It's often used to provide cash to pay staff and suppliers while business is slow during the early weeks and months of a new practice, or during a period of growth. It is usually designed to be repaid in the short- to medium-term, once the practice is fully on its feet.
Large-scale finance can be vital if you have major plans for your practice, such as acquiring a competitor. Growth Finance is a special type of funding designed to fund your growth plans. Lenders may require an established trading history and record of profits, but it may be possible to arrange Growth Finance based on your profit projections, rather than on your trading history.
Goodwill Loans, also known as Capital Withdrawal Loans or Cash Outs, let you access the value in your business, without causing potential cashflow difficulties. They allow you to use the goodwill built up in the practice as the security for a loan. They can provide a sum comparable to your annual turnover which you are free to use in any way that you wish.
A Goodwill Loan is secured on the value of your business and must be assessed by the lender on the basis of your accounts. It can bring you a sum typically between £50,000 and £500,000, with repayment over up to 15 years. Interest rates are agreed when the loan is taken out, and are variable - but will be significantly more favourable than those provided by other lending methods.
The Goodwill Loan can be used in any way that you wish - not just for business purposes.
REAL EXAMPLES OF WHAT WE CAN DO
Find the most competitive loan to let a small practice to acquire a lease on an existing surgery
Help a new practice finance the purchase of a suite of secondhand equipment
Source a professional loan to allow a newly qualified chiropractor to buy a partnership in an existing practice
Find the most competitive finance to allow a practice to buy its premises
Help a chiropractic professional arrange ‘jigsaw’ funding to allow her to acquire an existing practice
Why you need Rangewell to find finance for your practice
As a professional with your own practice, many lenders will be happy to lend to you. Your status represents a good business risk, and you can prove the viability of an existing business with a full patient book.
But not all lenders will offer the most competitive terms. Looking for the most competitive deal across the entire market takes time and expertise. We know the lenders who can offer the most competitive rates for the profession, and we find solutions for all types of finance including Professional Loans, Unsecured and Secured Loans, Invoice Finance, Asset Finance, Merchant Cash Advance, Commercial Mortgages, Growth Finance and more.
As well as conventional loan products, we can help you find Alternative Funding, using new loan providers and styles of funding.
Whether you have a straightforward, small-scale funding need, or require a complicated ‘Jigsaw’ funding plan made up of a combination of financial products, we can work with you to find the answers
Call us now to get our experts working for you.
Helping you build your profits
Lending tailored to your needsAt Rangewell we can help you find the most appropriate finance for any funding need your chiropractic practice faces. We save you money and help you move your business forward.
Funding scaled to your practiceFunding solutions are available for your practice whatever its size, and whether you need individual items or a complete treatment setup.
Building a cutting-edge practiceYou need to offer the latest treatment - including cosmetic treatments - to bring in patients. We can help you find ways to afford the equipment you need.
Reducing risk with Asset FundingIf your practice was to become unable to make the payments on equipment funding, the lender could simply repossess the equipment to cover their loss. No other assets are at risk.
Releasing the value in your businessA Goodwill Loan can allow you to benefit from the work you have out into building your business, without putting your business at risk.
Specialist lendersSome Asset Funding providers specialise in particular sectors. At Rangewell, we can help you find the most appropriate lenders for your practice.
Download Rangewell’s free and detailed guide to Finance for the Medical Profession
What types of finance are there - which do you need?
Why not all providers are equal - finding the one that’s right for you
How we can provide an additional income stream
The downsides to finance - and how to avoid them
How to arrange finance - what paperwork do you need?
Key terms explained
Getting the right funding arrangement is essentialThere are many forms of business finance available. Getting the most appropriate type for your particular needs is essential to avoid excessive costs.
Your key equipment could be at riskIf you are unable to keep up repayments on a Hire Purchase or lease agreement, the equipment your practice depends on could be could be at risk.
Long-term financial commitmentsYou may not be able to pull out of a finance arrangement once set up. This could present a problem if your practice changes direction or if technology moves on rapidly.
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