Pharmacy Business Loans
The pharmacy industry is a cornerstone of healthcare, providing essential services to communities across the UK. However, like any business, pharmacies require financial support to thrive and expand.
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from 6.90%
Interest rates per annum
£100,000 +
UK Based
No early settlement fees
£5k - £500k
Funding requirement
Our lending partners
About pharmacy business loans
Finance options for your pharmacy
As a pharmacy owner, understanding the diverse range of business loans available is essential. The right finance option can help you overcome challenges or support expansion and growth.
There are several funding types available for pharmacies, each with different terms and limits. Here is a breakdown of your options, allowing you to choose a business loan that best suits your needs.
Secured business Loans
Secured business loans are a helpful option if you want to borrow a large amount or are willing to provide collateral to access potentially lower rates or longer repayment terms.
This type of funding is secured against a UK residential or commercial property. Because the lender has security, secured loans can sometimes offer lower rates than unsecured loans, depending on your application.
Secured finance can be used for a wide range of pharmacy business needs, including refinancing, refurbishments, buying stock, improving cash flow, or funding expansion.
Unsecured business loans
Unsecured business loans don’t require collateral, but they often have higher interest rates than secured loans because they carry a greater risk for the lender.
If your pharmacy has no valuable assets to secure against, or you don’t want to put them at risk, unsecured funding can be a practical option. It can be used for most business purposes, such as increasing stock levels, covering payroll, investing in marketing, or upgrading systems.
Loan amounts can vary depending on the lender, your turnover, and your credit score. Repayments are typically fixed, which makes them easier to budget for.
Asset finance
If you want to purchase equipment or invest in new technology for your pharmacy but don’t want to pay the full cost upfront, an asset finance agreement can help.
Asset finance allows your business to spread the cost over time. Typically, the asset itself, like dispensing equipment, a refrigeration unit, or an EPOS system, is linked to the agreement and acts as security.
It may also be possible to refinance existing assets to release cash, but eligibility can depend on the age and condition of the equipment.
Revolving credit facility
A revolving credit facility works in a similar way to a business overdraft and can provide your pharmacy with flexible access to finance when you need it.
This option is helpful in managing fluctuating cash flow, covering unforeseen expenses, or dealing with short-term costs without taking out a traditional fixed-term loan.
You can withdraw, repay, and reuse funds within an approved credit limit. Interest is only charged on the amount you use, which can make it a cost-effective way to manage short-term expenses.
Merchant cash advance
Merchant cash advances are a financing option designed for businesses that need quick access to cash with flexible repayments that adjust in line with revenue.
The lender provides a lump sum, usually up to 2x your monthly card takings, in exchange for a percentage of future debit and credit card transactions. This means it’s only suitable if your pharmacy takes regular card payments.
Repayments are made through daily or weekly deductions from card takings until the advance is repaid. When sales are higher, you repay more and clear the balance sooner.
How business finance can help your pharmacy
Running a pharmacy involves various costs, from stocking a wide range of medications to maintaining a skilled and knowledgeable staff.
Here are some of the ways a business loan can help your pharmacy go from strength to strength:
- Inventory management: Pharmacies need to keep a well-stocked inventory of medications, which can be costly. Pharmacy loans can help you manage your inventory efficiently, ensuring you can meet customer demands.
- Technology and equipment: Up-to-date technology and equipment are vital for pharmacy operations. Loans can be used to invest in systems that improve efficiency, such as inventory management software and automated dispensing systems.
- Startup and setup costs: If you’re opening a new pharmacy, upfront costs can add up quickly. Finance can help cover early expenses like premises costs, fit-out works, initial stock, insurance, and professional fees, so you’re not relying on cash reserves from day one.
- Pharmacy acquisitions: Purchasing an existing pharmacy can be a fast route to growth. A business loan can help fund the purchase, giving you the capital to take over an existing operation and build on its performance.
- Cash flow management: Pharmacies can face cash flow pressure due to supplier payments, seasonal demand, or changes in prescription volumes. Flexible finance can help you bridge gaps, maintain stock levels, and cover short-term costs such as payroll and overheads.
To choose the right pharmacy finance option comes down to matching the funding to what you’re trying to achieve and ensuring repayments are realistic alongside your day-to-day running costs.
What you need the funding for
Start by understanding the purpose of the loan. A one-off cost, like buying equipment or upgrading your dispensary, may suit a different type of finance than ongoing needs like stock spend or working capital.
If you’re funding a major purchase, such as an acquisition or refurbishment, you may need a larger loan and a longer term to keep repayments manageable.
How much you need and what you can afford to repay
Borrowing more than you need can increase the total cost of finance, but borrowing too little can leave you short when costs come in higher than expected.
It helps to work from a realistic budget and forecast, then choose a loan amount and term that fits what your pharmacy can comfortably repay each month.
Whether you’re comfortable using security
Secured business loans can unlock larger amounts, longer terms, or lower overall borrowing costs.
However, you’ll need to offer a UK property as security, and it’s important to understand what’s at risk if repayments aren’t maintained.
If you’d rather avoid securing the borrowing, unsecured options may be more suitable, depending on affordability and credit profile.
How much flexibility you need
Some pharmacies prefer predictable fixed repayments, while others need flexibility to manage seasonal demand, stock cycles, or short-term cash flow gaps.
If you need to access funds as needed, a revolving credit facility may be a better option than a lump-sum loan. If your card takings are strong, a merchant cash advance may also offer repayment flexibility tied to your revenue.
If you’re unsure which option is best for your pharmacy, please speak with one of our advisors. We’ll help you understand what you’re likely to qualify for and match you with a lender that suits your needs.
To increase your chances of a successful application, consider these valuable tips:
- Prepare a detailed business plan: A well-thought-out business plan showcases your pharmacy’s vision, operations, and financial projections. It gives lenders confidence in your ability to manage the loan effectively.
- Maintain a strong credit profile: Your personal and business credit history can play a significant role in the approval process. Ensure your credit reports are accurate and take steps to improve your consumer credit score if needed.
- Organise financial documents: Lenders will want to review your financial statements, tax returns, and other relevant documents. Having them in order and accessible can streamline the process.
- Determine your loan purpose: Clearly outline how you intend to use the funds. Whether it’s for equipment purchases, working capital, or expansion, a specific purpose reassures lenders that the loan will be put to productive use.
- Consider collateral options: If you’re happy to provide collateral, it may improve your eligibility and potentially help you to secure more favourable terms.
To choose the right pharmacy finance option comes down to matching the funding to what you’re trying to achieve and ensuring repayments are realistic alongside your day-to-day running costs.
What you need the funding for
Start by understanding the purpose of the loan. A one-off cost, like buying equipment or upgrading your dispensary, may suit a different type of finance than ongoing needs like stock spend or working capital.
If you’re funding a major purchase, such as an acquisition or refurbishment, you may need a larger loan and a longer term to keep repayments manageable.
How much you need and what you can afford to repay
Borrowing more than you need can increase the total cost of finance, but borrowing too little can leave you short when costs come in higher than expected.
It helps to work from a realistic budget and forecast, then choose a loan amount and term that fits what your pharmacy can comfortably repay each month.
Whether you’re comfortable using security
Secured business loans can unlock larger amounts, longer terms, or lower overall borrowing costs.
However, you’ll need to offer a UK property as security, and it’s important to understand what’s at risk if repayments aren’t maintained.
If you’d rather avoid securing the borrowing, unsecured options may be more suitable, depending on affordability and credit profile.
How much flexibility you need
Some pharmacies prefer predictable fixed repayments, while others need flexibility to manage seasonal demand, stock cycles, or short-term cash flow gaps.
If you need to access funds as needed, a revolving credit facility may be a better option than a lump-sum loan. If your card takings are strong, a merchant cash advance may also offer repayment flexibility tied to your revenue.
If you’re unsure which option is best for your pharmacy, please speak with one of our advisors. We’ll help you understand what you’re likely to qualify for and match you with a lender that suits your needs.
To increase your chances of a successful application, consider these valuable tips:
- Prepare a detailed business plan: A well-thought-out business plan showcases your pharmacy’s vision, operations, and financial projections. It gives lenders confidence in your ability to manage the loan effectively.
- Maintain a strong credit profile: Your personal and business credit history can play a significant role in the approval process. Ensure your credit reports are accurate and take steps to improve your consumer credit score if needed.
- Organise financial documents: Lenders will want to review your financial statements, tax returns, and other relevant documents. Having them in order and accessible can streamline the process.
- Determine your loan purpose: Clearly outline how you intend to use the funds. Whether it’s for equipment purchases, working capital, or expansion, a specific purpose reassures lenders that the loan will be put to productive use.
- Consider collateral options: If you’re happy to provide collateral, it may improve your eligibility and potentially help you to secure more favourable terms.
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Securing business funding:
How it works
We understand that timing is key when you’re looking to find funding options for your business,so our process is as quick and as streamlined as possible.
1
Apply Online in minutes
We cater to any sized business, so to apply for business funding, we only need you to share basic information about your company. Your application will take a few minutes, and our experts are always happy to assist with any questions you have about specific loan types or alternative finance options.
2
Get Matched in hours
Our LendTech technology will compare our trusted panel of lenders and match you with your most suitable finance option. Each business funding option is different, and we’ll help to make sure you’re fully clued up on the terms and conditions as well as indicative repayment details.
3
Get Funded in days
One of our funding specialists will discuss the available options with you and guide you through the process from application to approval. Once approved, the funds can be deposited in a matter of hours.
Prefer to talk? Call us on 01371 870815
4.9/5 based on 100+ by happy customers
Navigate our range of business
funding options to find out more
We understand that timing is key when you’re looking to find funding options for your business, so our process is as quick and as streamlined as possible.
Apply for a recovery loan to help your business employ staff
A government backed loan to support businesses affected by the pandemic.
Looking to obtain an unsecured loan for your business?
Business loans up to £500k, without the need to secure on property or assets.
Apply for a secured business loan today and get matched with a lender…
Business loans up to £2M, secured against a UK property by way of 1st or 2nd charge.
It takes minutes to apply, there’s no effect on your credit score.
Acquire new or used equipment, machinery or vehicles and spread the repayments over 1-6 years.
Compare merchant cash advances to help your business purchase stock.
Borrow up to 2x your monthly card sales and repay through a small % of your future takings.
Compare revolving credit facilities to help your business grow.
A pre agreed credit facility, allowing you to dip in and out for future funding requirements.
Spread the payments of your PAYE, VAT or Corp Tax bills.
VAT/TAX loans up to £500k for PAYE payments, quarterly VAT payments or annual Corporation tax payments
Prefer to talk? Call us on 01371 870815
4.9/5 based on 100+ by happy customers
Key benefits of working with
Aurora Capital
LendTech Technology - Access to 50+ Lenders
At Aurora Capital, we use LendTech technology which gives us access to a vast network of over 50 commercial lenders in the market. Our extensive pool of lenders ensures that we can match you with the most appropriate lender for your specific requirements, who will provide competitive terms and reasonable loan options.
Apply Online in Minutes & Get Funding in Days
We understand that businesses often need funding quickly. For this reason, we offer a fast, simplified service. Once you’ve chosen the appropriate loan for your needs, you can apply online through Aurora Capital, which only takes a few minutes. Our team will then match you with a lender and acquire the necessary funds, often in just a few days.
No Effect on Your Credit Score
Conventional loan and credit applications can damage your credit score, but with Aurora Capital, this isn’t the case. Whether your application is successful or declined, your credit score remains unaffected. This is especially advantageous for newly established businesses trying to establish a credit score, or those with a negative credit history.
LendTech Technology - Access to 50+ Lenders
At Aurora Capital, we use LendTech technology which gives us access to a vast network of over 50 commercial lenders in the market. Our extensive pool of lenders ensures that we can match you with the most appropriate lender for your specific requirements, who will provide competitive terms and reasonable loan options.
Apply Online in Minutes & Get Funding in Days
We understand that businesses often need funding quickly. For this reason, we offer a fast, simplified service. Once you’ve chosen the appropriate loan for your needs, you can apply online through Aurora Capital, which only takes a few minutes. Our team will then match you with a lender and acquire the necessary funds, often in just a few days.
No Effect on Your Credit Score
Conventional loan and credit applications can damage your credit score, but with Aurora Capital, this isn’t the case. Whether your application is successful or declined, your credit score remains unaffected. This is especially advantageous for newly established businesses trying to establish a credit score, or those with a negative credit history.
100+ Happy Customers & Counting
Pharmacy business loans FAQs
Yes, it’s possible to get finance for a new pharmacy, but the range of options can be more limited than for an established business.
Lenders will usually want to understand your experience, the strength of your plan, and how affordable the repayments are likely to be in the first few months of trading.
As a start-up, you may be offered a lower amount, higher rates, or be asked for a personal guarantee. You’ll usually access more competitive terms once you’ve been trading for at least six months and can evidence turnover through bank statements and accounts.
Whether your pharmacy qualifies for a business loan depends on the type of finance you are applying for, as different products have different criteria.
At Aurora Capital, we can help businesses that meet the following requirements:
- 6+ months of trading history
- £100,000+ annual turnover
- Based in the UK
- £10k – £5m funding requirements
- Positive credit history
Starting an application is the easiest way to determine if you qualify for finance. Applying with Aurora Capital won’t impact your credit score, so there’s no risk to see what options are available to you.
Yes, some of the lenders we work with are willing to lend to pharmacy businesses with poor credit histories. However, your options may be more limited.
Secured loans may be an option if you have bad credit, as the risk to the lender is reduced by the collateral you put down. However, you will need to provide a UK property as security.
Some lenders may ask for a personal guarantee to offset risk if you have poor credit. However, this will mean you will be personally responsible for the loan if your business can’t keep up with the repayments.
Navigating the landscape of business loans for pharmacies can be complex, but our experts can provide the support you need.
As business finance specialists with access to 50+ lenders, we connect independent pharmacy owners with tailored funding solutions. Secure competitive rates and terms that align with your pharmacy’s growth objectives, all in as little as 48 hours.
