Pharmacy Loans Service
Our pharmacy loan service provides finance solutions for:
- Unsecured business loans – Finance up to £250,000
- Working capital business loans
- Bridging finance – From 1 to 24 month terms from 0.55% pm
- Asset finance – We have access to a wide range of asset finance lenders
- Acquisition loans – Looking to buy other pharmacy businesses? Use our online calculator to get indicative quotes on finance options.
What Can a Pharmacy Loan Do for Me?
A pharmacy loan can assist business owners in covering essential improvements, investing in growth, and acquiring new pharmacies. With a wide range of business finance and funding options available, each with its own costs and terms, it’s crucial to choose the right type of finance for your pharmacy practice.
Whether buying your first pharmacy, looking to expand your business or merely financing the day-to-day running, we can provide market leading pharmacy loans that allow you to focus on providing healthcare to your community.
Through our brokerage tool you can search the whole of the market, giving you access to the best possible rates.
Why Buy a Pharmacy?
- Allows you to provide a valued service to your community, and tangibly improve the lives of those around you through supplying necessary healthcare.
- While hours can be long, especially in the infancy of a business, the financial rewards can be exponential.
- Be your own boss!
Pharmacies are typically seen as low-risk investments by banks. With crumbling public services and an aging population here in the UK, pharmacy demand is rising and set to continue for the foreseeable future.
Pharmacy Loan Financing Options:
There are many different types of loans that may be relevant to you, depending on your situation:
- Commercial mortgages for securing the property.
- Asset finance for equipment, such as medical cooling devices, waste management systems or vehicles.
- Development and Refurbishment finance.
- Cashflow finance, such as merchant cash advances or invoice loans, for payroll or new pharmaceutical intake.
- Bridging finance for short-term capital requirements.
- Tax loans and Working Capital finance.
Pharmacy Loan Eligibility Criteria:
In order to secure your loan, it is essential you understand the criteria that lenders generally evaluate. For example:
- Personal Information: before securing a loan, the lender will typically ask for information such as the last six months of bank statements and last two years of tax returns, as well as your credit score. A low credit score makes your loan appear riskier, and therefore will likely raise your rate of interest.
- Business history: whether aiming to buy a pre-existing pharmacy or looking to grow your own, a history of profitability will be beneficial for securing loans for first-time-buy or expansion. Lenders will typically assess financial statements, profit & loss, and cash flow, as these are important indicators of your business’s ability to repay the loan.
- Plan: a detailed strategy proposal for how you will run your pharmacy, make profit, grow the business and project market conditions will increase the likelihood of acceptance. For example, research local GP data such as patient numbers and prescription velocity.
- Legal requirements: Ensure your pharmacy complies with all relevant regulations and has the necessary licenses. For example, a pharmacy cannot be opened within a certain radius of a pre-existing one. Be aware of any and all red tape.
- Collateral: depending on whether you apply for a secured or unsecured loan, you may need to put up insurance against a default.
Types of Lenders for Pharmacy Loans:
With easy access to financing provided by us, and typical Loan-to-Value rates of 70-90%, the six-figure cost of buying a pharmacy need scare you no longer.
As a specialist finance broker, we can provide options throughout the whole of the market, and tailor our search to your specific needs.
This allows you access to more options than solely your typical high-street bank. Here we outline advantages and disadvantages of some of these options:
- Commercial Banks: while typically most people’s first option, some banks don’t loan to pharmacies. Our brokerage tool can help find those that do. While they do provide competitive rates, High Street Banks typically have stricter eligibility criteria.
- Select Private Lenders: if you are an individual with a higher net-worth and more complicated financial situation, private lenders may be a more suitable option as their eligibility criteria can be more flexible to your situation. The application process is typically quicker as well.
Can I apply for a pharmacy loan?
Any business can apply for a pharmacy loan, regardless of how big or small it might be, providing that you are VAT registered and you meet the minimum monthly turnover.
As a range of business funding options are available, it can often be challenging to find the perfect deal to acquire your pharmacy. Our specialist business loan advisory team help take the strain in finding the right finance solution for your expansion into the pharmaceutical industry.
Call us today on 0117 313 8872, for a free initial consultation or use our business loan quote service.