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Whether you are
looking to purchase a
pharmacy, or
finance an existing location
Washburn & Associates can assist
you obtain the financing you need. We are direct correspondents to
major financial institutions, fund managers, and investors.
Types of
Pharmacy Finance
There are a number of methods to
finance an existing
pharmacy, or a
pharmacy acquisition. Each can be
customized, or included with other forms of
financing to provide the
pharmacy owner, or
pharmacy buyer, with the best
financing package and the greatest
chance for the pharmacy’s
financial success.
SBA Loans are offered by many
lenders for financing an
acquisition and these loans are a
major source of funding a pharmacy business
acquisition.
Non SBA Loans are offered by
both banks and private
finance companies.
Conventional Real Estate Loans
are offered by both banks and private finance companies.
Bridge Loans for pharmacies will
usually only be available from private finance companies.
Private Finance, or more
commonly called Business Notes, can assist the purchase when the
seller is willing to carry some of the financing and risk
themselves.
Cash Flow Financing, also known as
Accounts Receivable Finance,
A/R Finance, or
Factoring, is used to sell the
pharmacies receivables in order to obtain the funds faster allowing
the pharmacy to take vendor discounts, save interest expenses, etc.
Equipment Leasing, to obtain
equipment, computers, furniture and fixtures. Equipment Sale
Leaseback is a version where equipment owned free and clear by the
pharmacy owner can be sold to a leasing company and then leased
back.
Vendor
Finance, is commonly used when
a larger financially stable vendor wants to ensure they keep the
company as a customer. The vendor understands the industry and will
have a comfort level with the company’s past inventory turns.
Franchise
Financing, can be offered by a
pharmacy franchiser.
Purchase Order
Finance, can be obtained when a
finance company bases their
financing decision on the strength
of the company’s contract with a customer.
Personal Loans, from company
directors, family, or friends maybe needed to offset some of the
lenders risk. It is not unusual for a business buyer to use home
equity, family jewelry, cash value of life insurance, or other
assets to help collateralize a personal loan.
Senior Debts, which are loans
that may or may not be SBA guaranteed, will be in first position in
the event of default.
Subordinated Debts, are loans
that will be in a position behind the Senior Debt.
Merchant Account Advances, where a
pharmacy or drug store can use future credit card transactions to
easily access cash.
To learn more about
financing a
pharmacy contact
Washburn and Associates.
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