Pharmacy Financing up to $750,000
Are you a pharmacy business owner in need of additional capital? We’ve helped hundreds of pharmacies get funded with up to $750,000 in as little as 48 hours. To learn how much your pharmacy qualifies for, simply fill out our quick online application.
If you own or plan to open a pharmacy, you might be interested in applying for pharmacy business loans. An independent pharmacy loan can be used by health professionals to establish or expand a pharmacy in their town. We’ll cover everything you need to know about obtaining a pharmacy business loan in this article.
What Are Pharmacy Business Loans?
A pharmacy’s success depends on having enough capital to cover expenses. A pharmacy business loan is a loan pharmacy owners can utilize in a variety of ways. Depending on the type of loan applied for, it can be used to sustain, grow or expand your pharmacy business.
How Does a Pharmacy Business Loan Work?
There are different Financial institutions that offer pharmacy financing to pharmacy owners. They choose the loan provider and fill out the application. If the loan is approved, the company will contact the owner and deposit the money into their account.
Ways to Use Pharmacy Business Loans
You can use the funding to buy a pharmacy. However, you can also use the funding for other things. Other ways you can use the funds include:
Hire More Staff: If you’re the only employee at your pharmacy, consider hiring someone else to help out. You can expand your payroll and concentrate on growing your business with a small business loan.
Expand Your Business: If the pharmacy is doing well, you may consider opening a new location to serve more customers. Pharmacy loans are a great way to stay afloat as the industry becomes more saturated. Taking out a loan will help you purchase inventory or purchase or rent a space you can afford despite real estate being expensive.
Tech Investments: All businesses need to invest in new technology to stay competitive and provide their customers with the best service and care. A loan can help if you haven’t upgraded your equipment or systems recently.
Renovate: You can also remodel your existing pharmacy with funds from a business loan. If you haven’t updated your pharmacy since you bought it, a more modern look may help you attract new customers.
Pharmacy Funding and Finance Options
Banks and other lenders reject most small business loans. If you want to expand your pharmacy or buy new equipment you should consider small business loans. They’re also helpful for people who want to upgrade to new technology or pharmacies who need cash flow during a seasonal rush or slow time.
Merchant cash advances give pharmacies a lump sum of money in exchange for a share of future sales. So you’ll receive working capital, and they’ll receive a percentage of sales until the amount of purchases they have made is received.
A business line of credit lets pharmacy owners use funds as they need them. They can borrow money from a set credit limit then pay back what they borrowed over time. And they only pay interest on what they actually withdraw. High credit applicants can receive a higher credit limit and favorable interest rates, while lower credit applicants may receive a higher rate and a lower limit.
The US Small Business Administration backs loans made to pharmacy business owners through approved banks and financial institutions. Their flagship 7(a) loan is a standard option for pharmacies that need working capital or equipment financing.
Borrowers can receive a 7(a) loan up to $5 million with a maximum interest rate of 13.50%. The lender approval process may require collateral, a down payment, or a guarantee fee, depending on the individual loan. The SBA also provides 504 loans to cover pharmacy real estate purchases and microloans to fund smaller amounts.
How to Qualify for a Pharmacy Business Loan (With the Best Rates)
To qualify for a pharmacy loan, you have to take several steps:
Improve Your Personal and Business Credit Scores
Lenders that offer small business loans will look at your credit score to decide whether or not to lend you money. A credit score tells if you can repay your personal debts such as your mortgage, car loan, and credit cards.
Having a high credit score makes you seem less risky to lenders, increasing your chances of being approved.
A good credit score is considered 700 or higher, while a score of 800 or higher is considered excellent.
Understand the Requirements
Knowing the minimum requirements of a lender can help you increase your pharmacy’s approval chances. However, most lenders require borrowers to meet minimum credit scores, revenue, and years in business.
Bank loans and SBA-backed loans are the most difficult to qualify for. These types of loans usually need a credit score of 670, but they prefer a higher score of 740+.
To complete the application, you’ll need various financial and legal documents. You will likely need your business license, a voided check, a bank statement, a profit and loss statement, and tax returns.
How to Apply for the Best Pharmacy Funding
Eligibility Requirements
To be approved by mCashAdvance™, the following requirements must be met:
- U.S. citizens and legal residents only
- Must be 18 years old or older
- Your pharmacy must be at least six months old
- 500 or higher credit score
Funding Limits
Your pharmacy may be eligible for up to $750K in funding from mCashAdvance™.
Term Length
Repayment periods vary from 1 to 5 years, depending on the amount funded and your pharmacy sales.
Pharmacy Loans: Pros and Cons
Pharmacy Loan Advantages
- Many lenders provide loan options to fit your pharmacy’s business needs
- You can obtain large amounts of money
- The interest rate is lower than alternatives
Pharmacy Loan Disadvantages
- There can be a lot of requirements to obtain a pharmacy business loan
- Your credit history determines the interest rate you’re offered
- New businesses are less likely to be approved by lenders than established ones
- Collateral may be required
Other Industries We Finance
Frequently Asked Questions About Pharmacy Business Loans
Opening a pharmacy usually costs between $400,000 and $600,000. You need to realistically decide how you’re going to raise the money using the different options available to you.
Banks and credit unions generally require at least a 670 credit score to qualify for a pharmacy loan. Even if you receive a loan despite a poor credit score, the interest rate and/or repayment plan will be high. Alternative funding options such as merchant cash advances have less strict requirements and can often work with those with lower credit scores.
It depends on the lender and the loan type. Depending on how much information they need, some lenders can approve and fund within 24 hours. although getting approval for SBA loans may take weeks or months.
First, you’ll need to find a location and write a business plan. Then you’ll have to research your loan option to open a pharmacy. This will more than likely be a long-term arrangement.
It depends on the type of loan. Conventional business loans usually require collateral, unlike SBA loans.
Funding Your Business Is Our Business
Pharmacy Business Loans May Help Grow Your Business
By using a pharmacy business loan, you could help grow your business by opening a new location or making changes to your current location. As you choose the best pharmacy business loan option for you, consider how much you’re going to need to make the changes you want to make, and whether you want it all at once or just want to be able to have access to funds you can use as needed.
Does Your Business Need Funding Today?
There’s no fee or obligation, and it won’t impact your credit.
$5,000 – $1,000,000
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