Know your finance options
Whether you’re just starting your career as a newly graduated DC or you’ve been practicing for decades, you will find yourself in need of a new chiropractic table. While your first question is likely, “Which one do I want?” the next question is often, “How am I going to pay for it?” Fortunately, you have a few different options.
Finance with the chiropractic table company
One option is to finance your purchase through the company you buy the chiropractic table from. Most offer several different purchase and leasing options, allowing you to stretch your payments out over the course of one or more years so you don’t have to carry the brunt of the full expense up front. Some even offer deals with no down payment, which means that you don’t have to part with any money initially to get the table that you want.
To help you select the right financing option for you, take a close look at your monthly income and expenses and see how much room you have for an equipment-related payment. Don’t forget to leave yourself some room to spare so you aren’t sweating it during the months you see fewer patients.
Finance with a specialized company
An additional alternative you may wish to consider is to use a company which specializes in loaning monies for chiropractic equipment. Carson Robertson, DC with Alpha Chiropractic & Physical Therapy says that he has used companies like this in the past and it was a positive experience. “I have financed several pieces through NCMIC,” says Robertson. “It was easy, convenient, and helped manage cash flow.”
When using equipment financing companies, there are some things you want to look out for before signing your name on the dotted line, especially if you choose to lease. Smarter Finance USA cautions against:
- “Evergreen clauses” that require you to notify the company within a certain amount of time of your intent to purchase the equipment at the end of the lease, making the agreement invalid if you don’t comply.
- Large, up front deposits that the money-loaning agency can keep, even if you wind up unable to get financing to make the purchase.
- Being offered extremely low rates to get you interested in doing business with them, but that you’ll likely never qualify for (commonly called “bait and switch”).
Use a credit card
Some credit cards offer zero percent financing on purchases for six, twelve, or more months. That makes this an option to consider if you know that you can pay off the balance in that period of time to avoid high interest charges. Low interest deals may be something to consider as well, especially if they are being offered at a lower rate than some of your other table financing options.
The one caution that Robertson offers if you choose to take this route is that using all of your available credit may not be the best idea from a business standpoint. “You never know when billing becomes problematic,” he says, “and the extra credit card space would help you sleep better at night.”
Americans with Disability Act tax credits
Regardless of which financing option you select, you may be eligible for a Section 44 tax credit to help offset costs. This is a tax credit established in 1990 that seeks to help businesses provide access to those with disabilities. Eligible businesses earn less than $1 million annually and employ no more than 30 full-time employees. This tax credit allows for a 50 percent break on certain expenditures over $250, but less than $10,250.1
Tables that assist patients with getting onto the table would qualify. If you decide to pursue this credit, you’ll want to talk with your accountant to determine if your table qualifies and, if so, what you need to do to get the credit.
Financing your new chiropractic table using one of these options is a great way to update your equipment without the burden of the entire expense up front. It’s like having the best of both worlds—a new table and money in your bank account.
1 “Section 44 Tax Credit.” Hill Laboratories Company. http://www.hilllabs.com/images/tax_credit/Hill_Tax_Credit.pdf. Accessed November 2015.