What is a pharmacy business loan and how does it work?

Pharmacy owners can benefit from specialised business loans to meet a variety of needs. The financing can be used to purchase inventory, upgrade equipment, hire and train staff, expand locations, manage cash flow gaps, or acquire an existing pharmacy.

Loan amounts are based on factors such as the pharmacy's financials, revenue, the owner's credit profile, available collateral, and the banks' or Non-banking Financial Companies’ (NBFCs') policies. Loans can range from small working capital to large sums for growth and expansion.

Collateral may be required, or loans may be unsecured with stricter eligibility requirements. Moreover, the repayment terms are tailored to the pharmacy’s cash flows and are usually set monthly, quarterly or seasonally over months or years.

Furthermore, the application process involves submitting ownership, financial, licencing, and permit documentation. Unsecured loans can be processed and approved quickly. Interest rates depend on the loan specifics and the applicant’s credit profile.