How To Acquire Funding For Your Wellness Clinic In 2022
Acquiring funds to set up or expand your wellness clinic is one of the biggest challenges faced by small business owners. Or, you may need finances to help lift your business during hardships like global pandemics and inflationary times.
As a matter of fact, 33% of small business owners report a lack of capital as their greatest challenge¹. Worse still, such a lack of capital may lead to business failure. If you are wondering how to raise capital, read on for business funding tips to help you get funds.
Raise Capital For Your Wellness Business With The Following Business Funding Tips
Adequate financing for your wellness clinic will help you carry out your day-to-day operations easily. So whether you are looking to invest in additional wellness services like cryotherapy or expand in other ways, the following tips will help you.
1. Do your research
The first step to securing funding is to explore a wide range of financing options. This will help you pick an option that best suits your needs. Your research should include things like loan types, terms of lending, interest rates, and lender reviews.
Other than the conventional lenders, also look into other financial sources such as personal savings, family and friends, angel investors, crowdfunding platforms, venture capital, and the Small Business Administration.
Once you’ve conducted in-depth research, pick a funding source that best fits your situation and for which you can qualify.
2. Check your credit score
Your credit score will determine whether you will get funding and at what rates. Lower credit scores attract higher interest rates. So after choosing your preferred lender, you need to check and improve your credit score.
There are several ways you can use it to better your score. One of the best ways to improve your rating is by paying your bills and other debts on time. Also, avoid opening too many lines of credit as they will lower your score.
If you have to use a line of credit, take one under your business name and build your credit with it. Ensure you make timely payments in full. However, you need to note that improving your rating takes time and consistency.
3. Put your paperwork in order
After picking your lender and examining your credit score, the next step is to organize the necessary documents. Examples of papers you should have include tax returns and business bank statements etc.
Another crucial document you need is a well-crafted business plan. It will come in handy when proving to your lender that your clinic is worth funding. Your plan should include details of how you intend to invest the funds.
Once your paperwork is ready, you can start the application process and follow your lender’s directions. After submitting your application, wait for approval. If you qualify, invest the money as planned. If you do not, consider non-profit small business funding organizations that look beyond your credit score.
Get Your Wellness Clinic Up And Running With The Above Business Funding Tips
The increase in inflation rates has led to higher operational costs for businesses hence the need for more capital. In fact, 43% of the small businesses report taking loans to combat the effects of inflation². If you need more funds, the above tips will help you.
Founded on facts: for peer-reviewed articles, scholarly journals, and articles cited above please see the below sources.
Impact of lack of capital on small businesses
https://fortunly.com/statistics/small-business-failure-statistics/Small businesses and loans
https://fortune.com/2021/12/14/small-business-owners-loans-inflation/
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