Goodwill Loans for Pharmacists

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Your pharmacy practice generates wealth. At Rangewell, we can help you access the cash in your business with goodwill loans. 

At Rangewell we recognise your professional status, and we work harder to find you better solutions - which can include 100% finance for many of your needs.

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Goodwill Loans for Pharmacy Owners

Growing your pharmacy business is your top priority, but without the cash flow to support this activity then growth can be difficult.

Goodwill loans allow you to access the value in your business, so you can focus on your business goals. 

Table of Contents

As a pharmacy owner, you'll know the benefit of having access to cash to invest in growing your operation. However, it's not always easy to manage cash flow alongside business expenses and other costs. As a result, investing in your business might be easier said than done.

Tap into the fruits of your hard work with goodwill loans. Enjoy the wealth you create in your chemist shop and pharmacy while leaving the funds in your business bank account untouched.

Keep reading to learn more about how goodwill loans work, and how to apply. Or, get in touch with Rangewell today to kick off your loan application and find the best pharmacy loans for your business goals. 

What is a pharmacy goodwill loan?

A goodwill or capital withdrawal loan allows certain professionals in the medical sector, including pharmacy owners, to access the value in their business without actually withdrawing funds.

Typically, a goodwill loans by allowing you to use goodwill you have already built up in your business as security for the loan. Therefore, this type of loans is usually only available to pharmacy owners with a strong financial record and clear business plan.

The lender calculates the loan based on your annual turnover and you can typically access between £50,000 and £500,000 with repayment terms of up to 15 years. You can invest this funding in a number of different ways, depending on your individual goals and plans for growth. 

How does a goodwill loan work?

Goodwill is an intangible asset associated with the purchase of one company by another. This is often a portion of the purchase price that is higher than the sum of the new value of all the assets purchased and the liabilities included in the process.

Factors include the company's brand name, its existing customer base and its customer and supplier relationships. Additionally, proprietary technologies will be the reasons why goodwill exists. In a nutshell, goodwill is any property that is not easily quantifiable. 

Since goodwill isn't a fixed amount, it can be complex to both calculate and lend based on. To determine the value of goodwill, a lender will take the company's purchase price and then subtract the net fair market value of identifiable assets and liabilities. 

In order to ensure you're getting the best deal, we recommend working with an independent broker like Rangewell to help you find and secure a goodwill loan. Speak to Rangewell's team of finance advisors today and start your business loan application. 

How can you spend a goodwill loan?

You can use your goodwill loan in a number of different ways. In fact, there are only a few limits on what you can do with your loan - you can’t use it to pay off your mortgage on your main home - but otherwise, you can use the funds in almost any way that you wish, including:

  • Buying property in the UK overseas for investment
  • Buying a second home
  • Paying for education
  • Buying a pharmacy business
  • Buying a second shop to expand your existing pharmacy operation
  • Buy pharmacy equipment
  • To support retirement planning or investments

Don't just take our word for it, here's what one of our happy customers had to say.

"I wanted to buy a holiday home - as an investment and something to enjoy. I couldn’t take the money out of the business for the deposit, even though it was there, without running into problems with tax and cash flow.

"But a talk with the pharmacy funding professional at Rangewell showed me that a goodwill loan was not only possible but would make very good sense. I bought a cottage in Devon - and Rangewell helped with the mortgage too.”

What are the benefits of Goodwill loans?

The significant benefits of intangible assets and goodwill are:

They enhance the value of the business: Intangible assets will play a big part in strengthening the role of the business. For example, customer perception and the reputation of the company on the market are the most critical elements in the success of any business. In addition, the world is changing, more businesses are building a presence online, and the importance of intangible assets such as intellectual property, knowledge and business relationships are increasing.

They're an excellent investment: Managing and accounting for intangible assets is a form of investment compared to having a robust asset base. As a result, companies can earn a significant premium compared to the costs incurred but acquiring equipment and the costs of maintaining them.

For example, the company would incur buying and manufacturing costs, maintenance costs, depreciation expenses, and obsolescence costs for a tangible asset. 

For companies to stand out against competitors in the industry, the company needs to recognise that intangible assets are unique elements. 

Drawbacks of intangible assets and goodwill are:

It can be complex: Intangible asset valuation is a complex process and needs expert understanding, approaches, and exercises. 

What are the limitations of Goodwill loans?

There are a few limits on what you can do with your loan. For example, you can’t use it to pay off your mortgage on your primary home.

However, if you are buying a competitor business, for example, then this can help you to fund that purchase. Don't forget to familiarise yourself with pharmacy due diligence, even if this isn't your first business acquisition. 

Goodwill is difficult to price, and negative goodwill can occur when an acquirer purchases the company for less than market value. This will usually happen when the target company doesn't negotiate a fair price for its acquisition. As a result, negative goodwill is generally seen as a distressed sale and will be recorded on the acquirer's statement. 

There is also the risk that the previous company could face insolvency. When this issue happens, investors may deduct goodwill for their calculations of residential equity. 

Pharmacy goodwill loans with Rangewell

Now that you know a bit more about goodwill loans, it's time to get in touch with Rangewell to see if this option is available to you and start your application. Our team doesn't just help to find the best finance for you, we also support the application process and work to identify any risks ahead of time. 

Make Rangewell your finance partner and access the funds you need to grow your pharmacy business today. 

Last update: 21 November 2022

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Frequently asked questions

Have a question?

Can you borrow against goodwill?

Every lender will have different criteria, so you should speak to Rangewell's expert goodwill brokers to gain all the information you need to find the right deal for you and your business needs. Lenders may typically finance somewhere between 50% to 80%. Repayment terms will be up to 36 months, but 10 months is more common. The APR can be anything between 4% to 99%, but this will depend on the lender, loan terms and creditworthiness. 

Can you borrow against intangible assets?

The main issue is that intangible assets will change in value. Therefore banks will not lend against them. Expert goodwill brokers such as Rangewell can provide you with everything you need to gain a better understanding of goodwill lending. 

We'd recommend you work with a goodwill mortgage broker - they can provide you with bespoke deals that banks may not be able to offer. A goodwill loan can be an important additional asset for your personal financial plans, and give you a great deal of extra spending power.

What information do I need to apply for a goodwill loan?

Rangewell will tell you precisely what you need to know when applying for a goodwill loan. Typically, lenders will want to look at the following information:

  • Financial statements of the existing practice being acquired (most lenders will prefer 2-3 years)
  • Personal financials 
  • Purchase contracts

Speak to Rangewell today to find out how we can help you with goodwill for your pharmacy. 

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