Frequently Asked Questions

We are often asked this question and the answer is most definitely yes.  Most banks are happy to lend to acquire an established Pharmacy although please do bear in mind that the lenders credit policy and lending criteria will differ sizably from one bank to the next.

This where we can help. Our job as an independent broker is to match clients with the right bank, and indeed the right bank manager, to ensure a positive lending decision.  Please call us on 0330 088 1157 to find out more.

Any bank considering a funding application for a pharmacy purchase will focus on 2 key areas before undertaking any loan assessment:

1. You as the buyer
2. The subject business or pharmacy you are looking to buy

The bank will look for evidence of your experience (your CV will be vital) together with details of your prior earnings, bank statements and asset and liability profile.

They will then focus on the subject business/pharmacy you are planning to buy. Sight of the most recent accounts, up to date management information and ultimately a business plan & Profit/Loss forecasts based on your proposed working arrangements to gauge whether it is a viable business proposition.

If you’d like to talk to us further about what’s needed, please give call on 0330 088 1157.

If you’re looking to buy a pharmacy our recommendation is that you start by obtaining a financial pre-assessment to determine exactly how much you can afford.

You’ll need to provide a little bit of background information such as your CV, Personal Asset and Liability profile, bank statements and summary of existing earnings, and this will then enable us to give you an indication as to the level of borrowing the banks would potentially lend.

We will also provide you with a ‘pre-assessment certificate’ which would demonstrate to any sales agent and seller that you’re a serious buyer and have the ability to proceed with any new purchase.

If you’d like to arrange a financial pre-assessment or obtain more information please call us on 0330 088 1157.

In short, probably not.  Bank lending criteria changes all the time and the financials of the pharmacy you are looking to purchase may possibly have changed over the past 12 months.

Most bank offers have a shelf life of between 3 and 6 months so once you’re beyond that period, any proposal you have will need to be updated.  Even if you do have a previous bank offer, it would be wise to test the market to see if there are any more competitive terms available from other lenders - remember the banks’ lending criteria and pricing changes all the time as well so it is certainly worth double-checking what else is out there.

If you’d like to speak to us further on this, please call us on 0330 088 1157.

In most cases, yes you are likely to need a business plan to support a pharmacy purchase.

Your business plan should provide background on the subject business, outline how it currently operates with specific focus on the financials of the business. You then need to expand upon any changes you are proposing and how this will impact upon the financial position.  This would normally be accompanied by a Cashflow and Profit/Loss forecast based on how you intend to run the business.

We can help you prepare and draft any business plan & forecasts you need – contact us on 0330 088 1157 for more help and support.

In an ideal world, the banks would expect you have evidence of managerial experience for them to consider lending to you for the purchase of a pharmacy.

With this in mind, it’s important that your CV is written in a “bank-friendly” style that demonstrates this.

Indeed we have a handy template CV which we are happy to share -  so if you need help to draft or re-write your CV, please get in touch on 0330 088 1157.

If you’re moving ahead with a pharmacy purchase it may seem an easy option just to approach your current bank, but this doesn’t guarantee you’re getting the most competitive deal.

Also bear in mind that no two Banks are the same  -  they will all have different lending criteria so it’s vital you don’t make the mistake of approaching just one bank direct as they will only outline what their own lending guidelines will permit and may not offer you the best possible deal.

Having the right documentation to support your application will present you in the best possible light and could make all the difference to a positive lending decision. Doing this all takes time, so it’s important you factor this in.

Whilst you can do all this yourself, our advice would be that that you work with an independent adviser who is authorised by the FCA.  An independent adviser can work with all the banks, including smaller ‘niche’ lenders and they’ll know the right bank managers to approach. 

They’ll also have a whole of market overview and will know and understand the lending criteria of each lending bank and will tailor your application to ensure the best chance of securing a positive lending decision at the best possible terms.

And once you do get the funding you need, they’ll work with you to the very end of the purchase to ensure everything goes through smoothly.  For more advice, please give us a call on 0330 088 1157.