Independent pharmacies are not dead yet! What are independent pharmacies? All the pharmacies that have fewer than three stores under one corporate are called the independent pharmacy. In 2016, the annual revenue generated by the pharmaceutical sectors surmounted one trillion. Retail pharmacy businesses are still generating enough revenue to boost the economy of the United States of America. A couple of decades ago, investors considered retail pharmacy stores as an easy option for investment, but in recent years pharmacy business has started to get competitive.
As the degradation of health standards and the downfall of the environment is causing more people to succumb to illness, hence the need for more pharmacies is increasing. Pharmacy business is a profitable business. Although if you already have a pharmacy business and exploring ways to increase the cash flow to generate more profit, know that traditional and alternative lenders are offering pharmacy business loans.
A need for external funding can arise from various bad decisions; financially impossible business plan, poor cash-flow management, and poor market analysis are just to name a few. Moreover, often it gets hard to generate $300,000 to run all necessary operations smoothly. Fortunately, a small business loan can help you jump off all the financial hurdles with ease. Some lending companies have strict eligibility criteria for medical-related companies, so approval for a small business loan is easy and relaxed. With a solid credit history and enough annual revenue, the loan is yours.
How can I get a business loan for my pharmacy?
At the top of the head, loans such as working capital loans, equipment loans and business lines of credit would be an ideal funding option for a pharmacy.
Equipment loans: Running a pharmacy without proper equipment is a tough task. If need a couple of machines to run it effectively. If you are looking for funds to update the machines that you already own, you must apply for the equipment loan. The prices of those machines are higher and sometimes when you are running low on cash you need extra funds to purchase those machines. You can apply for an equipment loan easily. The first thing you need to do is contact the potential lender, and the rest will follow. Fill an application, submit the required documents, get a quote, and if the lender offers you a fair deal then shale on it.
Working capital loans: if you are finding it hard to manage the cash flow and are running out of funds to do mandatory tasks such as stocking up on the inventory, a working capital loan would provide adequate money. With this extra money, you can make the timely purchase of the drugs to meet the customer’s demands. A working capital loan can give you access to more than $100,000.
The applying procedure for a working capital loan is the same as the applying procedure for the equipment loan. You contact the lender, fill the application, and submit the required documents (driver’s license, cash flow statements, credit score report, and business tax return documents). Then wait for the lender to approve your application. If your credit score is more than 650, business is more than two years old, and your pharmacy is generating an annual revenue of more than $50,000, you are a model standard for a business loan.
Business Lines of Credit: In addition to the working capital loan and equipment financing, a pharmacy can also benefit from a business line of credit. As a business line of credit allows you to dip into the pool of funds whenever it is necessary, so you can use the money to solve any sort of financial problem.
You can have access to a business line of credit when you apply and the lender approves. The applying process for this loan remains the same as the above two business loans.
In addition to these, you can also apply for a multitude of loans offered by the Small Business Administration. These loans have low-interest rates and flexible repayment terms. But if you need fast access to the funds, then applying for an SBA loan is not a wise option. It is wise to apply for a business loan that can help your pharmacy.
How can I use Pharmacy Business Loan to benefit my business?
- Increase your workforce: You can use the money to hire and train more employees as this will allow you to delegate your tasks to others. With a working capital loan, you can easily cover the payroll of those employees. Plus, if your pharmacy is attracting more customers, but you are running short of staff, so your customers are going unattended, then hiring more employees is a must for your business.
- Stay up to date with the technology: In medical and pharmaceutical business staying in touch with the recent technological trends keeps you one step ahead of your rivals. So use a business loan to update your computer, security systems, or any important gadget.
- Remodel and Renovate: If you think your pharmacy needs an update, so spend some money on the remodeling and renovation. You can even run a customer survey and ask their opinion regarding what updates they would like to see in your pharmacy. Give it a modern makeover to attract and engage more customers.
- Opening at the second location, maybe? For a blooming and profitable pharmacy, an option to open the business at another location is always on the table. As mentioned earlier, the competition in this field is getting higher day by day so open a second store is a wise option.
In addition to this, if you don’t want to spend money on these domains then saving a few bucks is always an option! This way you will have financial support in case of any financial emergency.
Merchant Advisors takes pride in offering pharmacy business loans at an affordable interest rate and our remarkable financial advisors make it easy to choose the best business loan. So, head over to the official website, and apply for a small business loan. For more information about financial documents and tips and tricks to get the most ideal funding, follow us on Facebook and Twitter (@Onlinecheck). If you have any question, feel free to call us on our toll-free number at (833) 827-4412, our loyal and keen financial advisor will answer your every question and guide you throughout the way.