Securing £1,800,000 refinance for a pharmacy

When you have a business to run, there are plenty of other demands on your time. As a result, many borrowers are prepared to take an offer that seems reasonable rather than invest even more time to see if they can find a lower rate. It means that many business borrowers - including many pharmacists - are stuck with finance deals that cost them much more than is necessary. It means an extra drain on their cashflow and puts their business at a competitive disadvantage.

The simple answer is to turn to a funding expert to find the most competitive deal. In fact, at Rangewell, we can frequently save our clients money after they have already arranged finance - with refinance.

We were recently approached by a pharmacist who had arranged £1,800,000 funding to buy his business - and who realised that he might be able to save a great deal of money by refinancing.

“I had bought my chemist shop two years ago, with the help of £1,800,000 lending from my bank. I was pleased at first. They had offered me a rate of 3.5% over base and it seemed a good deal. Then the base rate went up a little and I started to worry. What if it went up again, and was the deal I had really as good as I had thought?”

He realised that finance was not his core skill, and turned to Rangewell to see if we could help.

“Rangewell don’t charge for their services, so I thought I had nothing to lose by approaching them to see if they could find me a better deal.”

How we helped 

We have a specialist team with an understanding of the pharmacy sector, and our service is personal. It means that by calling us you can have an expert in funding for your kind of business who is working to get you the finance you need.  

Like our client we saw that, with large-scale funding, any increase in base rate would mean a large increase in his monthly repayment costs - but equally, it would mean that any reduction in rate we could provide would mean valuable savings.

The client had been running a successful business for two years. He was, therefore, a better prospect for a lender, and that meant we should be able to arrange a better rate.

The pharmaceutical sector is particularly attractive to lenders. They may compete with each other to lend, because pharmacists, like other professionals, are seen as very likely to repay even large loans without problems. By approaching several lenders, we can make this competition work to our clients' advantage.

We used our personal contacts with banks and other lenders to go directly to the decision makers. By speaking to the experts in the pharmaceutical sector we expected that we should be able to get a more favourable deal for our client.

We approached several lenders, and were able to find an offer of refinance at just 2.5% over base - a saving of a whole percentage point. This would allow the original loan to be paid off, and replaced with a lower cost deal.

It meant a major saving for our client.

Original loan:

  £1,8000,000 at 3.5% above base of 0.75%

  Monthly repayment of £13,541.01

Refinance loan:

£1,8000,000 at 2.5% above base of 0.75%

  Monthly repayment of £12,648.04

  Monthly saving of £893

“I was saving nearly £900 every month - which is a worthwhile reduction in anyone’s book. But I wanted that saving to work for me.”

The client's shop was in need of refurbishment - and with an extension to the rear it could offer almost double the sales space as well as a refreshed interior. The client asked about the possibility of adding an extra £300,000 to his borrowing - which thanks to his new rate would be very affordable.

Total borrowing:

£2,100,000 at 2.5% above base of 0.75%

  Monthly repayment of £15,797.85

“The monthly repayment costs were up a little - but thanks to Rangewell's help with the refinance, I was getting a lot more in return - enough to give my business the extra investment it needed to reach its full potential.”

Our client has already started on the extension to his premises, and is looking forward to a big boost in his profits as soon as they are complete. 

We help professionals like you to find business loans for pharmacy, whether you're looking for start-up finance for your pharmacy to funding premises or even a robot. If you are ready to refinance your pharmacy, our Pharmacy Funding Specialists are ready to provide the help you need - and call on our contacts throughout the lending industry to secure it. Our service is independent, fast and absolutely free - and means having an expert in pharmacy sector finance working to find you the answers you need.