Answers to Questions Most Asked by Students and New Doctors
 

Lease vs. Purchase

 

Many doctors who are in the process of starting up a new practice are taking advantage of the many lease options that are available in today's marketplace for Chiropractic equipment.  Let's take a look at the two concepts of leasing Chiropractic equipment compared to an outright purchase.

 

Most leases allow the doctor to eventually purchase the equipment at the end of a lease, usually at the end of a five-year period, with a payment equal to 10% of the original lease.   One can usually purchase needed equipment by leasing through a vendor.  The main difference between leasing and buying is the total interest or cost that you will pay over the life of the lease or loan.  In many cases, a doctor may qualify for a Small Business Loan that will have a lower annual percentage rate than a typical loan through a bank.  

 

When applying for a loan on equipment, it will be necessary to present the lender with an extensive, well thought out Business Plan.  This plan should include several pieces of pertinent information for the lender to consider such as:  the location of your practice including traffic patterns, the method by which you expect to attract new patients, a basic plan showing the number of patient visits (which should reflect a reasonable increase) that covers the length of time involved in the terms of the loan, and the income you expect to receive each year from offering your professional services over the life of the loan. 

 

Qualifying for a lease usually takes a lot less paperwork and time, and an increase in risk to the company offering the lease, resulting in an increase in cost to you over the term of the lease vs. the cost of a loan.

 

Whether you choose to purchase or lease Chiropractic equipment, you might want to also consider refurbished or reconditioned equipment rather than buying new.   The cost savings can be considerable which will, of course, lower your total overhead.

 

For acquiring general office furnishings, such as desks, chairs and computer equipment, you might also want to consider used items wherever practical.  Look for ads in the newspaper selling used office equipment due to business closings and/or items that have superficial damage, such a desk that is scratched and can be readily repaired.  You can save a considerable amount of money on these used items over the price of new ones. 

 

Take the time to get a variety of quotes and bids and do not hesitate to bargain and negotiate, especially if one supplier has the items you want but another supplier has a better price.  The time and effort you invest in careful planning, comparison shopping and cautious financing will all reap important returns in the first year of practice.  With the growing number of on-line chiropractic newsletters and message centers, you can also advertise for equipment wanted, usually at minimal or no charge.  Planning ahead can also save you money.  Don't wait until you need tables, etc. tomorrow.  If you have a long time window, you can explore your options with no sense of pressure and the ability to pass over an ok deal while you look for better options, which are very likely to be out there.  You just have to look.

 

 

 

The International Chiropractors Association is the oldest continuously existing international chiropractic organization in the world. The ICA represents thousands of practitioners, educators, students and lay persons, and ICA has traditionally been and continues to represent the moderate voice of the chiropractic profession.  The ICA supports and promotes the interests of chiropractic, chiropractors and the patients they serve through advocacy, research, and education. Throughout its long history, the International Chiropractors Association has sought to educate and inform the public, other health care professions and health policy makers on the principles and definitions of chiropractic to foster a broader understanding and acceptance of the profession. The ICA has also established standards of ethical, technical and professional excellence for chiropractic education and practice.
 
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For More Information, Contact the International Chiropractors Association, a Worldwide Community of the Most Successful Chiropractors on Earth at chiro@chiropractic.org or visit the ICA website at www.chiropractic.org.

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