Finance Options for Pharmacies
Pharmacy Acquisition Finance
Buying a pharmacy business - the dispensing goodwill, fixtures, stock, and potentially the freehold - requires finance structures that recognise NHS contract value. Specialist pharmacy lenders can fund up to 100% of the goodwill element in some cases, based on the NHS contract income and the pharmacy's EPS (Electronic Prescription Service) registration. We arrange pharmacy acquisition finance from £50,000 for small independents to £5m+ for group acquisitions.
NHS Cash Flow Finance
The NHS prescription payment cycle - with NHSBSA payments arriving monthly in arrears - creates a persistent cash flow gap for pharmacies with high dispensing volumes. Invoice finance or a revolving credit facility bridges this gap, ensuring salaries, drug purchases, and overhead costs can be met without relying on the owner's personal funds.
Dispensing Equipment Finance
PMR systems, dispensing robots, automated blister packaging machines, consultation room equipment, and MUR (Medicines Use Review) facilities all qualify for asset finance. We arrange equipment finance from £5,000 for a single item to £500,000 for full pharmacy automation.
Stock Finance
Drug purchasing - particularly for pharmacies running a specials operation or high-cost dispensing - requires significant working capital. A stock finance facility or revolving credit line bridges the gap between purchase and NHS reimbursement.
Pharmacy Expansion Finance
Opening a second pharmacy, converting a retail unit, or acquiring a competitor requires expansion finance. Whether secured against the freehold or supported by NHS contract income, we structure facilities to match the pharmacy's specific situation.
Eligibility
Pharmacy finance typically requires: GPhC registration; NHS contract (for NHS-focused facilities); minimum 12 months of trading history; and financial accounts for the last 2 years. New pharmacists buying their first business can access specialist new-entrant lending programmes.