Given the wide range of services a neighborhood pharmacy provides — filling and explaining prescriptions, doing blood pressure checks, giving flu shots, answering health-related questions, and more — becoming an independent pharmacy owner may seem like an attractive business opportunity. Of course, you need to compete with heavyweights like CVS and Walgreens, so you may very well need some kind of financing if you have trouble making ends meet at some point.

The cost to open a pharmacy can be in the $500,000 range, a figure that includes building out space, securing insurance, and purchasing everything necessary to get started: equipment, supplies, and inventory. Then, of course, there are ongoing costs such as advertising, utilities and staff salaries and benefits. Getting to the point where you turn a profit can take some time.

Small Business Loans

Why Financing?

There are countless reasons why a pharmacy owner may need financing, including:

  • Compliance with new and emerging laws and regulations
  • Keeping employees up-to-date on all the licensures involved with being a pharmacist
  • Payroll costs
  • Expansion costs
  • Ensuring the pharmacy has the most up-to-date technology

A lack of capital shouldn’t be the reason why any owner struggles, since there are several  small business loans available to offer the resources needed to get by a tough stretch or grow to become more competitive.

Small Business Loan Options

A variety of different pharmacies small business loans are available, including business lines of credit and working capital loans. Since each pharmacy owner’s situation is different, it’s important to weigh the pros and cons based on specific needs and goals.

  • Business Line of Credit — Business lines of credit provide owners with access to funding on an as-needed basis. Money can be borrowed up to the amount of a set credit limit and paid back over time. Interest is only paid on the funds that are actually withdrawn.
  • Working Capital Loan — Working capital loans are used to cover the everyday costs of running a business, typically on a short-term basis, such as paying wages. They are usually more favorable to small or new businesses than normal bank loans, and they have shorter terms and more lenient qualification criteria.

The Takeaway

If you are in the position of needing financing for your pharmacy, your unique needs will determine whether a business line of credit or working capital loan is right for you. Just be aware that you have options, even after perhaps a bank has said “no.”

Want to discuss your financing needs with experts who’ve helped countless businesses over the years? Contact Clear Skies Capital at 1-800-230-9822 or visit us online to learn more. Clear Skies Capital is your best option for any kind of loan.