Local Owners Raise 80% LTV Loan To Purchase National Pharmacy Chain Disposal

The UK’s pharmacy market is dominated by some big brand names. These names, over time, tend to lead to a sizeable customer base. When one of these corporate brands sought to sell off excess branches in disposal, the opportunity was too good for a local group of pharmacists to overlook.

The branch for sale represented an appealing investment due to its existing client base and state-of-the-art dispensing equipment, but also commanded a sizeable asking price. Time was of the essence for the potential buyers, who needed to raise the funds quickly as the chain was attracting all manner of offers. 

Needing a high LTV and to find support from a lender that offered competitive business loans for pharmacists, the aspiring owners turned to Rangewell for help. 

Why was there a problem?

The main challenges for the applicant was the urgency with which they needed the funds and the LTV they sought. Due to having the majority of their capital tied up in their existing business, the borrowers needed at LTV of 80%. 

Lenders base their decisions on many factors, including your existing capital, your ownership experience and your plans for the future of the business. The group of pharmacists already owned another local pharmacy, which helped strengthen their case in the eyes of the lender, despite their relatively low capital contribution. 

How we were able to help

Rangewell know the lender’s market inside and out and can quickly identify those who are experienced in the pharmacy market and can see the value of a potential borrower beyond their LTV. 

We helped the applicants tailor their business plan to showcase their previous success in their other pharmacy and demonstrate how they would add tangible value to the potential new branch. We then set up face-to-face meetings with the three most relevant lenders, allowing the team to demonstrate their knowledge, enthusiasm and expertise to the lender first-hand. 

This unique approach was only possible through Rangewell due to our longstanding relationships with teams from mainstream banks and independent lenders alike.

Ultimately, we secured three different offers from three lenders, giving our client a choice. We helped them decide on the right offer, which delivered a full 80% LTV loan where the funds were released quickly. This enabled the buyers to secure their purchase ahead of competitors due to the availability of funds. 

Buy the pharmacy you want with our help

When an opportunity to grow your business knocks, you can’t ignore it due to a lack of perceived capital. Pharmacies are difficult to establish, so buying a competitor's well-known branch can be a sensible investment that helps you win much of their client base, even if you need to seek a high LTV loan to finance it. 

Ultimately though, you do need the necessary funds behind you to fund the purchase. If you don’t have a significant amount of capital saved or access to liquid business cash, you'll need to apply for finance in a way that positions your business in the best light. 

Just as we did in this case study, Rangewell can act on your behalf to identify lenders, negotiate an agreement and secure finance. We'll make it easy for pharmacists to raise the credit needed to buy disposal assets. Don't let opportunities go to waste and get in touch today.