QUESTION:  ARE THERE ANY CREATIVE OPTIONS TO FINANCE MY PRACTICE START-UP COSTS?

Starting a practice takes planning, work and money.  Planning is a function of data-gathering, hard work and vision.  Work is work; you can do it or it doesn't get done.  Money, however, is available from many sources, some of which few people looking to start in practice ever even think of.  Two good sources that are well worth looking into are family based and require the support of people who are willing to assist and support you, often at no real cost to themselves.

Americans have two great resources for borrowing, both of which offer low rates of interest and are easily accessible because the money sources are fully guaranteed.  The first is a retirement loan.  Many people have amassed large retirement funds, many of which have provisions for borrowing.  Funds such as a 401-K offer this borrowing option, according to the rules of the plan, which provides a situation where you are borrowing from your family, paying them the interest and in the end, they are losing nothing, not even interest, from their retirement fund.  The greatest advantage of this option is the family connection and the closeness of the parties that allows for easy qualification.  Those making the loan will know and trust you, no complicated qualification process or paperwork is required, and the terms are very good because you largely set them yourself.

The other untapped option for practice starter loans is to seek help from family members or parents through a home equity loan.  The maximum available through such a loan depends on the equity in one's real estate property.  Parents of chiropractic college graduates tend to be in an age bracket where considerable equity is likely to have been accumulated and the amount needed to start a practice, from $10,000 to $30,000, is well within the parameters of easily accessible home equity loans.  Commercial lenders are aggressively competing for such loans and with mortgage interest rates at the lowest level in years, this is a great possibility.  Family members tend to want to help and support younger members seeking to make a start in their professional lives.  Again, the funds are secured, easily accessible through a variety of lenders, and the interest is tax deductible as home mortgage interest for the lender and as a business expense for you.

Parents want to help and these options offer a way to secure the resources necessary to get started, for family to be involved in the practice and for the new doctor to have the support needed to get started.  The sooner you get started, the sooner you can be earning and the sooner you can repay all of your school and practice related obligations.

As a final note, family members who have invested financially in your practice are also more likely to invest their personal energies in referrals, outreach and in the understanding of the many aspects of chiropractic practice.  This is also important because support comes in many ways.