Where Should I Get My Financing?
We'll Help You Choose Your Lender Carefully
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!
Certified SBA Lender:
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/Conventional Lending:
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.
Carefully Choosing Your Lender Is Crucial
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!