What to Do When Business Is Booming

There were two options when it came to how to move forward for this chiropractic business. The first would be to only take the patients as space was available, which would mean some may have to choose a different practice to visit. The other was to take the plunge into expanding the business.

 

To move forward, the owner knew that renovations would be needed. It also made sense to purchase the property and land so it would be owned by those running the business. It would take a lot of work but the owner chose to move forward by looking into how much it would cost.

 

The Cost of Property, Land, and an Expansion

There were a lot of factors to consider when moving forward with the project. However, before deciding it was a good idea, the owner wanted to know how much it all would cost.

 

In this case, purchasing the building and property plus accounting for the expansion led to a price tag of around $750,000. With the cost in mind, the owner moved on to the next step.

What Kind of Financing Is Available?

There are tons of financing options for businesses. Some have more requirements, others might have higher interest, and many aren’t loans at all. For instance, the owner looked into asset-based lending options and lines of credit but those didn’t seem particularly useful for this project.

 

On the other hand, there were traditional loans. Many exist and they can also vary to a large degree. Those that require collateral have lower interest rates in most cases, but there is a great deal of flexibility in others. After thinking long and hard, the owner decided an SBA 7(a) loan was the right option.

 

What the SBA 7(a) Loan Brings to the Table

There are several benefits associated with an SBA 7(a) loan. One that the owner was happy about was the long-term length and the lower interest rate. This would ensure the bills weren’t too high if it took some time to get everything done and bring in new clients.

 

This loan also has lower collateral requirements than many, is paid back monthly, and the business qualified in terms of years in business, revenue, credit score, and cash flow.

How Time Changes Things

An SBA 7(a) loan takes longer than some other forms of financing, but that wasn’t an issue. After several weeks, the money was available and the expansion started. It took a lot of work to get everything finished but it was well worth it when the time came to open the doors.

 

Today, the chiropractic center is fully owned by the company, making great profits, and bringing in more clients than ever before. Everything is going great and the owner is delighted about choosing to move forward with the SBA 7(a) loan.

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