Business Loans for Pharmacies

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Best Business Loans for Pharmacy financing

Community pharmacists are always in need of capital due to the nature of their business and its challenges. Pharmacists have a lot to manage in the pharmacy industry and must deal with many challenges when operating a pharmacy. Getting capital to help run the pharmacy is essential for cash flow to balance the Inventory of drugs, margin pressures from insurance companies, and over-the-counter products sold at the pharmacy all impact independent pharmacy sales. You often have to purchase supplies and meet payroll before funds come in from clients or insurance.

Traditional banks and other financial institutions can make it challenging to get funding for small business owners such as pharmacies. It’s no secret that it’s hard for a borrower to get a loan or any financing, for that matter, from traditional banks.

AdvancePoint Capital can provide that working capital to independent pharmacies like yours, so you focus on running your business and make it grow. There are many financing options that pharmacy business owners can use to their benefit from our network of alternative lenders. Finding the right pharmacy financing that works best for your business may take some guidance.

That’s why we put together the eight best small business loan options for funding small, independent pharmacies. Each of these financing options offers unique benefits and qualities that may work for your company. Take a look.

The following are the most common types of loans for independent pharmacists.

The 8 Best Pharmacy Business Loans for
Small Business Owners

There are many options that HVAC business owners can use to their benefit. An HVAC contractor loan can assist with a wide range of funding needs. Finding the right HVAC financing that works for your business may take some guidance. That’s why we put together the seven best financing options for HVAC businesses. Each of these HVAC business loans offers unique benefits and qualities that may work for your HVAC company. Take a look at which one is for you.

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Long-Term Small Business Loans for Independent Pharmacies

Long term loans provides pharmacy financing for large projects and/or expansions requiring long term loans greater than 2 years. Interest rates, terms and monthly payments are attractive to small business owners.

Business Line of Credit

Small Business Line of Credit for Independent Pharmacies

Line of credit is a popular option for pharmacy owners looking for a credit facility they can use on demand and draw money when needed, while you only pay interest rate on the outstanding balance.

SBA Loan

Small Business Administration Loans for Community Pharmacies

SBA loans are popular small business loans with small business owners because of there great interest rates and repayment terms. The Small Business Administration sets the guidelines and underwriting requirements for SBA loans for small businesses.

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Business Credit Cards

Business credit cards are a good supplement to other pharmacy business loans. Credit cards are quick and easy option to make purchases and pay expenses.

Short-Term Business Loan for a California Small Business icon

Short Term Small Business Loan for an Independent Pharmacy

Short term pharmacy business loans are typically 6 to 24 months in duration with fixed rates and terms.

Small Business Cash Advance for a California Small Business

Business Cash Advance for an Independent Pharmacy

Business cash advance is a alternative to pharmacy business loans when qualifications are an issue. Advances are not loans, but an advance off of future receivables of the pharmacy business.

Merchant Cash Advance for a California Small Business

Merchant Cash Advance for an Independent Pharmacy

Merchant cash advance is an alternative to small business loans. Merchant cash is an advance of future receivables, repaid by the funder taking a percentage of future credit card processing sales.

Equipment Financing for a California Small Business

Equipment Financing for Pharmacies

Equipment financing is a good option when purchasing new equipment at affordable terms and payments.

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AdvancePoint Capital makes the loan application process a simple, straightforward experience.

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How to Qualify for Pharmacy Loans

There are a few factors involved in your approval.

1. Credit Worthiness: Credit Score

How does your personal credit and credit report as a business owner affect qualifying for small business financing?
Personal credit score information of the business owner plays a significant role in determining what, if any, loans you can be approved for by lender loan applications. As a business owner, the better your personal credit is, the more business funding options you will have to choose from. However, it’s essential to know that not all financing offers involve a personal credit check.

How to Understand, Review, and Analyze your Credit
A smart thing to do is pull your own credit information using all three credit bureaus to see your credit scores: Equifax, Experian, and TransUnion. (Be wary of sites that offer you “a credit score” as that may be another credit risk model other than FICO.)

FICO credit score risk model:


What is a good credit score to get approved during a business loan process?
As a rule of thumb, a 750 FICO score and up is Excellent, 720 FICO and higher is good, 680 FICO and higher is Fair, below 680 to 620 FICO is marginal, and below 620 is considered poor. For the most part, the longer the term and the lower cost small business loans will require the highest credit scores and standards.

2. Length of Time

How long you have been in business is a significant factor in determining qualifications and repayment guidelines for loan products. Let’s face it; business lending is a risky business. Business lenders need to see a track record to take a calculated risk in providing you a term loan. Many small businesses don’t make it past the first year in business, so obviously, business lenders will be cautious if you have less than two years in business when providing loans.

3. Financial Statements

What financial documents and information may business lenders need for Pharmacy loans?

Business Bank Statements
Almost all small loans will require bank statements to review. Typically three months are needed, but sometimes 6 to 12 months may be necessary if the business is seasonal or has made a considerable loan amount request. Bank statements show business lenders the cash flow activity of the company and your ability, as the business owner, to manage the business’s finances.

Profit & Loss and Balance Statements
These statements provide a more detailed view of the business and its health and may be required for the longer-term and lower-cost term loan options. The good news is that Profit & Loss and Balance Sheet statements typically are not necessary for alternative business lending products.

Business and Personal Tax Return
Some business lenders will need to see tax returns. If that is going to be a challenge, there are a lot of alternative business online lenders who will not require these documents, but keep in mind, most likely, the term loan offers you receive will be impacted by the lack of documentation and therefore be reflected in the costs and repayment guidelines you will be provided.

Apply For Pharmacy Business Loans Today with Advancepoint!

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Benefits of Business Loans for Pharmacy Owners: Identifying Why You Need Money for your Pharmacy

The first step in any search is clearly defining why your business needs the funds. The “why” will direct you many times to the right loan product. Working capital is the most popular reason because there are so many ways it can be used. When cash flow gets tight due to fluctuations in sales and many challenges, extra capital can provide the buffer needed to carry the business through rough times.

Other reasons for the need for business financing by a pharmacy owner include, but not limited to:

Working Capital Loan for Pharmacy Operations

Operating a pharmacy can be complex. Pharmacy owners need to balance customers, inventory purchases, employee payroll and other services offered by pharmacy operations.

Inventory Financing

Inventory financing for prescription medications, over-the-counter drugs, healthcare industry products, household goods, and other items often offered at pharmacies is a must. Without inventory financing the pharmacy owner could get jammed up without inventory.

Renovations/Facility Maintenance

When running a pharmacy, the pharmacy facility needs to have a customer experience that is appealing, accessible, and convenient. Pharmacy owners may need to renovate the facility to draw in or maintain customers against competition like CVS, Rite Aid, and Walgreens. Projects such as these require various pharmacy business loans. Commercial real estate loans may be necessary to improve the property due to the high costs of renovations.

Marketing and Advertising

Many pharmacists need advertising to maintain and grow their customer base. Business loans allow you to design and optimize a website for greater exposure and access other marketing methods, including pay-per-click advertising, SEO and buying leads. Traditional outlets like radio, newspaper, and signage may also help grow your business.

Making Payroll

As small businesses grow, payroll will grow into something that must be managed and maintained with zero tolerance for cash flow shortages for an existing business. Unexpected issues related to pharmacy business receivables can put a small business owner in a position they can’t afford to be in, which is missing a payroll. Working capital and other operational costs are a necessity for successful pharmacy businesses. The right pharmacy financing option to help is a real game-changer. The vast and diverse range of pharmacy business loans gives pharmacists the freedom to make sound financing decisions and eliminate payroll as a problem.

Adding Pharmacy Services

To compete with competition like Walgreens, CVS and or Rite aid you may need to add services like medication therapy management.

Why AdvancePoint Capital?

Experience with community pharmacies. We’ve helped countless pharmacists find pharmacy business loans that work best for their business. Our simple diverse range of pharmacy loans and our network of alternative lenders gives community pharmacists the freedom and flexibility to find a financing solution that works for their small business regardless of the challenges.

With AdvancePoint Capital, you’ll get the benefit of loan specialists familiar with the pharmacy industry. With our simple application process and a trusted name in the pharmacy funding industry, we make it easy.

  • Experience – We have been funding pharmacies throughout the industry for years.
  • Trust – Excellent customer experience reviews and feedback from independent Pharmacies.
  • Loan Specialists – Experienced business funding specialists who know the pharmacy industry in and out and treat your interaction as a business relationship and not just a transaction.
  • No cost, no commitment quotes-Pharmacy owners can rely on accurate, no obligation offers with reliable rates, terms and loan amounts.
  • Products – A variety of pharmacy business loans. We don’t just provide what we have; we offer what’s available in the marketplace for most businesses.

Pharmacy financing can be intimidating, but it doesn’t have to be. Credit history, time in business, and financial documentation may seem daunting if you’re dealing with a bank — but with AdvancePoint Capital, we find a funding solution that works with your pharmacy instead of against it. We are here to find the RIGHT pharmacy financing option for YOUR business.

Frequently Asked Questions

The Bottom Line

When searching for a pharmacy loan, the bottom line is that pharmacists have to evaluate all the financing products available in the marketplace. You shop insurance companies, don’t you? The same goes for acquiring a pharmacy small business loan. Bank loans aren’t always the way to go due to a lack of flexibility with credit, cash flow, and financials for pharmacy loans that a bank would offer.

AdvancePoint Capital can take those challenges your pharmacy may have at getting approved at a bank and turn those problems into the right solution with various working capital loan programs at our disposal.

Get Started and Grow Your Pharmacy Business Now!

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