Need finance?

My experience of chiropractic over the last 12 months has, in actuality, been fairly positive. Sure, some clinics have seen a reduction, but they have adapted and minimised losses - in the current environment we are working with many more businesses to assess matters on a strategic level.

Thankfully, because of action, anything greater than a 10% decline is unusual and this has perhaps been a welcoming stimulus as many businesses are now paying greater emphasis to their marketing strategy - essential in today's modern and changing environment.

Many are working just a little bit harder and often results are fairly consistent with prior years, if not improving. I am sure we are all thankful we are not in the construction industry, or faced with the turbulence that is in the general public sector.

It's a tough time out there, but life goes on..

So people still want to step up the property ladder; owners still want to sell clinics; and associates still want to buy businesses, to name but three important events in a chiropractor's life. These are events that we deal with on a daily basis, and if the profit is still being earnt, and one has done the appropriate affordability sums, then what is the problem?

.well, at least we're trying to..

We have certainly experienced that entrepreneur's expectations of yester-year coupled with lenders' criteria of today have led to regular and protracted problems.

Whether we like it or not, the banks have no obligation to loan us money (and I won't get drawn into any debate about bail-outs). In the current marketplace their approach is very much risk-based.

I am sure that everyone has now heard of goodwill and I have talked many times about its advantage for tax-planning purposes. Grounded in reality, this evidences that there is value in the patient list of a chiropractic clinic and will likely be the majority of the value of your business. However if we think like a bank (just for a second) we must understand that if your business should fail then they will struggle to realise any funds that they have loaned you against that value. Unfortunately, compared to residential property, it is not an open and free market-place, and the asset is much less tangible.

So, what can we do?

Every dream will start with an investment from the buyer. The days of 100% finance are long gone, and in all honesty, I believe that was a bad place. Sometimes it takes just a little bit of potential risk on your part to provide the incentive and motivation that is crucial in business.

So if it is a business venture you are considering then you will need a cash deposit at a minimum of 25%. You may also need some security in a residential property of the like but there are no hard and fast rules now. There are no set criteria as it will rely on your specific circumstances.

Headline interest rates and promises will also not be your friend at the moment and it is regrettable but we have seen an unfortunate numbers of deals meander without conclusion. Sometimes it is knowing the tricks of the trade. Finding a bank that at least knows what chiropractic is could be invaluable as it will help minimise that assessment of risk from their perspective.

Ross Martin ACA

T: 01872 242800

E:ross@finance4chiropractors.com