Revenue-Based Financing for Chiropractic Offices
Revenue-based financing gives a chiropractic office a lump sum repaid as a share of revenue, so a week with few visits or a slow month of settlements means a smaller payment. It fits growth, like adding an associate or a new therapy service, where new revenue repays the money. The total repayment is set when you sign.
Why a percentage fits chiropractic
Visits vary week to week
Holidays, weather and patient schedules shift visit counts. A percentage follows them.
Settlements arrive in lumps
Personal injury settlements can bring large deposits at unpredictable times. A share takes more when they arrive and less when they don't.
Revenue share math for a slow month
A chiropractic office with $45,000 in monthly revenue gets $20,000; it repays $26,600 at 8% of what comes in.
| Month | Revenue | Remittance at 8% | Remittance as a share |
|---|---|---|---|
| An average month | $45,000 | $3,600 | 8.0% |
| A slow month, 25% under average | $33,800 | $2,700 | 8.0% |
The remittance shrinks to $2,700 in a slow month, and payoff runs near 7 months at average revenue. With a 1.5-point yearly range in BLS employment for offices of chiropractors (NAICS 621310), the slow month to test is the one on your statements.
Where chiropractors use it
- Adding an associate chiropractor.
- Launching decompression, laser or rehab services.
- Opening a second location.
- A new patient marketing program.
Terms to review
Settlement deposits
Ask whether personal injury settlements are counted in full when deposited. A large settlement can raise one month's payment sharply, which speeds payoff but can squeeze cash that month.
Prepaid plans
Confirm how prepaid care plans are counted, since the office still owes those visits.
Minimums
Check for a minimum payment and compare it with a slow month.
When a line costs less
Waiting on settlements is a recurring gap and usually cheaper on a line of credit. Revenue-based financing fits growth that brings new patients and new revenue.
Cash-pay offices versus insurance offices
A mostly cash-pay practice has daily card revenue, so a revenue share follows each week closely. An insurance-heavy office sees deposits lag visits by weeks, and a share taken from deposits will trail the schedule. Know which you are before choosing the percentage.
Measuring the new service
If the money funds decompression or laser therapy, count how many care plans include it each month. That number tells you whether the service is paying back the share on schedule.
Quick answers
Does revenue-based financing work for a chiropractor?
Yes, especially for growth like adding an associate or a new service. The payment is a share of revenue, so it follows visit volume. Ask how personal injury settlements and prepaid care plans are counted, and check for a minimum payment.
How do settlements affect revenue-based financing for a chiropractor?
If settlements count as revenue when deposited, a big one raises that month's payment and pays down the balance faster. That's good for payoff but can tighten cash that month. Some funders cap the share on large one-time deposits, so ask.
What should a chiropractic office use revenue-based financing for?
Growth with a payback from new patients, like an associate, a decompression or laser service or a second location. For the recurring wait on settlements, a line of credit usually costs less.
More for chiropractic offices
- Same-day merchant cash advance for chiropractic offices
- Business line of credit for chiropractic offices
- How funders read chiropractic offices
- Revenue-based financing: how it works
Run your own numbers with the factor rate calculator.
Want to see what fits a chiropractic office like yours?
Tell us your slow months and your open advances, and we'll shop the file with funders whose programs fit. Call 877-FUND-654 with any question. We call you back, usually the same business day, and we always talk with you before we shop your file.