Pharmacy Stock Finance During NHS Contract Transition
£95,000 · 6 months · 4.5% over base. An independent pharmacy in the North West was transitioning to a new NHS dispensing contract that required a significantly wider range of medicines to be held in stock.
The Client
Independent pharmacy in the North West
The Challenge
An independent pharmacy in the North West was transitioning to a new NHS dispensing contract that required a significantly wider range of medicines to be held in stock. The upfront cost of expanding the formulary was £88,000 - capital the pharmacy did not have readily available while maintaining normal cashflow.
Our Solution
Doulton arranged a stock finance facility specifically for the pharmacy formulary expansion, secured against the pharmaceutical stock. The NHS dispensing contract - with its guaranteed monthly payment - was noted as the primary repayment source. The facility was repaid from NHS payment receipts over six months.
The Outcome
Full formulary stocked before the new contract commenced. NHS contract fulfilled without stock shortages. Facility repaid in full at month six from NHS receipts. The wider formulary subsequently attracted additional private prescription customers. Key highlights: Pharmaceutical stock accepted as security; NHS contract payment stream confirmed as repayment source; Full formulary available from contract day one - no patient.