Refinancing Your Pharmacy Loans

Pharmacies, for example, may take out loans to help purchase new dispensing equipment or to purchase a competitor outright. 

Having taken out finance means acquiring debt, which limits some business owners who fail to recognise the flexible nature of the finance market. Debt doesn’t mean you can’t continue to grow. 

Pharmacy owners who focus solely on making repayments may be missing out on the flexibility offered by refinancing. In most cases, you can approach your existing lender or a new one and negotiate a refinancing agreement. 

Refinancing can help your pharmacy: 

• Reduce the cost of monthly repayments by spreading the loan across a longer timeframe. 
• Raise further credit to use to fund new purchases, bridge cash flow gaps or solve other problems. 
• Move to a new lender if you’re unhappy with your current one.
• Switch between a variable or fixed interest rate to help plan your financial future. 

To make the most of your refinancing potential, talk to Rangewell before you approach your lender. We can help you understand what the possibilities for your business look like and negotiate on your behalf to get you the best deal possible. 

Refinancing pharmacy loans

If you’re still not sure when refinancing may be beneficial to you, here are some of the common scenarios you might encounter as an owner that help demonstrate the value of refinancing your loan.

Bridging to business loans

If you’ve ever taken out a bridging loan to help with short-term cashflow problems or to purchase a competitor in a time-sensitive deal, you might find that repayments are expensive due to the short-term nature of the loan. 

Pharmacy owners can refinance from a bridging loan to a more stable business loan, spreading repayments across a longer timeframe. This may increase the overall cost of the loan depending on the interest rate you’re offered, but it will lead to lower monthly repayments and will help you free up your working capital. 

Refinancing assets and equipment

If your pharmacy has machinery or other costly assets, you may be able to leverage them in an refinancing agreement to unlock cash. If you own them outright, you may be able to use them as security for new loan facilities. If you’ve got outstanding payments to make, refinancing to a different lender can spread the costs further and enable you to plan your financial growth with more stability. 

Speak to Rangewell about your pharmacy equipment needs and see how we can help. As experts in healthcare asset finance, we know which lenders are supportive of your sector and will find the right terms to suit your business. 

Refinancing to consolidate debt

If your business has multiple sources of debt, it can be a challenge to manage repayments and term lengths. To simplify your finances, why not combine all of your debts into a single loan? Refinancing allows you to do just that, with one lender purchasing the other debts and forming a more streamlined repayment structure. 

If you’re struggling to balance multiple loans at once, limiting your pharmacy’s ability to grow, refinancing is probably the right option for you. 

Pharmacy finance with Rangewell

Whatever your pharmacy needs, Rangewell can assist you in finding the appropriate form of finance to suit your goals. If you have no existing debts and don’t need refinancing, there are lots of more appropriate loans that can help you grow – from commercial mortgages to buy your business premises through to asset finance to get cutting-edge equipment to edge ahead of your competitors. 

Contact Rangewell today to fund your pharmacy with bespoke loans built for you.