As you go through school, you most likely accumulate two things: knowledge and debt. The knowledge of chiropractic will help you when you get out into practice. The debt is the price you pay for that knowledge.

Along with the debt, you may also have accumulated other things, such as a car or home or some savings. Now is the time to organize your debts (liabilities) and the things you own (assets).

When you approach a bank to ask for a practice startup loan, the first thing the banker will want to know is not information about your proposed practice, but about you. Being prepared with answers can make the difference in getting a loan or not. So what information do you need to accumulate to be prepared for this important conversation?

Assets

Gather information about your various assets be prepared to discuss:

• Approximately how much you have in bank accounts (checking and savings), along with the name and address of the bank and the account numbers.

• The value of any IRAs or other retirement accounts, the name and address of the institution where the account is held, and the account numbers.

• The current cash surrender value of any life insurance you have, the name and address of the insurance company, and the account number.

Note that the cash surrender value is not the death benefit; it’s any amount left in the account to accumulate interest above the amount needed to pay the premiums. Term insurance has no cash surrender value. You may also need to provide the “face value,” which is the death benefit amount, and the beneficiary.

• The approximate current market value of your home or car. For home values, you will have to do a little homework by checking other comparable property in the area. You can get assistance from a real estate agent, or you can check “for sale” listings in your town’s newspaper. For autos, get an estimate online through Kelly Blue Book (www.kbb.com). You will have to supply your home address and possibly the VIN (vehicle information number) of the car.

• The value of other personal property you own, such as a boat or RV, including specific information about models and age.

Liabilities

You should also be prepared to discuss all of your liabilities. These include:

• Current balances on all credit cards, the name of the bank where you have the cards, and the account numbers.

• An approximate amount you owe on your student loan debt. The bank can get this from credit reporting agency, but it’s still a good idea to show that you know this amount.

Issue 5 > Get the Facts > Gather information to prepare your personal financial statement > Who needs competition? How to do a competitive analysis > Your USP, part 2 Other conveniences to promote your unique practice > How to evaluate your USP > Planning to Succeed in Practice Project 5: Attend a Convention or Seminar > Download this Issue in pdf format

• Amounts owed on home, car, and other personal property, including the name and address of lenders and account numbers.

• Other liabilities, such as alimony and child support, if you have any of these.

As you can see from the list, you need to keep all of this information current. For such items as checking accounts that are widely variable, use an average amount that might be in the account during the month.

At least twice a year, go through the checklist to be sure you have complete information on all assets and liabilities. When you go to a bank, you’ll be glad you did.

Back