Funding for Pharmacists to buy a competitor

Your pharmacy practice is also a business - and the best direction for a successful business can often be expansion. If you are running a pharmacy and chemists shop, buying a competitor could help you take your business to the next level. Economies of scale can cut your costs, while additional retail premises could provide a big increase in sales and profits.  

At Rangewell, we can help you find the funding you need if you are considering buying a competitor.

Using Goodwill Loans

A Goodwill Loan could use the wealth already built up in your practice to fund your acquisition, while leaving the funds in your business bank account untouched. A Goodwill Loan, also known as a Capital Withdrawal Loan or Cash Out, uses the goodwill built up in your practice as security. It can bring you a sum comparable to your annual turnover, with repayment terms of up to 15 years. Interest rates will be agreed when the loan is taken out and, although they will be variable, are likely to remain significantly more favourable than with other types of lending.

Remortgaging your existing property 

Remortgaging your current premises could actually provide the level of funding you need to buy a competitor practice. Commercial Mortgages work much like a residential mortgage, and can provide the large-scale funding you need at competitive rates, and still let you spread repayments over up to 20 years. Many businesses use remortgaging as the most cost-effective way to raise the funds they need.

Commercial lending for pharmacy practices

There are traditionally two types of commercial loan - Secured and Unsecured - which could provide the funding you need.

Secured Loans must be supported by security, such as your home, that the lender would take and sell if you became unable to make the required repayments. This reduces the risk to lenders and, in turn, allows them to reduce the cost of lending to you, with rates that can be as low as 2% above base rate and with ten or more years to repay.

Unsecured Business Loans are a straightforward way of borrowing and operate much like a personal loan. The loan is repaid in monthly or quarterly instalments over an agreed term which is usually under 5 years. Decisions can be fast but you will need to provide a personal guarantee meaning that you will become personally liable for the debt if your business was unable to pay.

‘Jigsaw’ Finance for your pharmacy

Acquiring a competitor's practice may mean a range of funding is required. We can provide 'Jigsaw' Funding, which is a bespoke package made up of the most appropriate type of funding for each need. We have found that it can help people ready to make the most of their business access a higher level of funding than could be provided by a single finance option - and reduce the costs too.

Finding the finance you need to buy a competitor 

At Rangewell, we will work with you to understand your business plans and use our expertise to help find the funding that meets your needs. We can find the most competitive rates for all types of finance, including Professional Loans, Unsecured and Secured Loans, Invoice Finance, Asset Finance, Merchant Cash Advance, Commercial Mortgages, Growth Finance and more.

To find out more about setting up the finance you need to buy a competitor simply call us. Our experts are ready to help.