Pharmacy Loans & Acquisition Finance

1. Gather the pharmacy’s accounts and dispensing figures for several years, and agree heads of terms covering price, stock and any deferred elements.
2. Talk to a broker early, so you know what lenders are likely to support before committing to professional fees.
3. Instruct a specialist solicitor and accountant and start due diligence.
4. Submit the finance application with the valuation, your contribution and a forecast under your ownership.
5. Run the regulatory steps in parallel, so completion is not held up.

The regulatory side matters to lenders. In England, the incoming owner makes a change of ownership application that NHS England must determine, and the premises must be registered with the pharmacy regulator. Practice acquisition finance and our guide to buying a professional practice cover the whole transaction.

Beyond the purchase, pharmacy commercial finance covers the freehold, refits, dispensing automation and the working capital that bridges the gap before NHS reimbursement arrives. Freehold purchases are usually funded with commercial mortgage-style lending through practice premises finance, while robots and dispensing systems suit equipment finance.

Expect to put in a personal contribution, often in the region of a fifth of the goodwill price, plus cash for fees and the first weeks of trading. The exact figure depends on your experience, the pharmacy's dispensing figures, whether the freehold is included and how the deal is structured, and lenders tend to lend a higher share against a freehold than against goodwill. Professional Practice Loans, a specialist whole-of-market broker, tells you what lenders are likely to need before you make an offer.

• Where it comes from. Lenders check the source of your contribution, so savings, a family gift or equity released from property should be evidenced early.
• Fees. Legal, accountancy, valuation and due diligence costs sit on top of the price.
• Deferred payments. Part of the price paid to the seller later can reduce the cash needed at completion, if the lender agrees how it ranks.

Often, yes. Stock is usually counted by an independent stocktaker on completion day and paid for on top of the agreed price, and lenders can include it in the acquisition package or fund it separately as working capital. Wholesaler credit terms for the new owner also affect how much cash you need, so agree them before completion.

See practice acquisition finance and our guide to buying a pharmacy, or get instant quotes for the purchase.

Yes. Building or upgrading a consultation room, with the furniture, IT and clinical equipment that go in it, can be funded with refurbishment finance, an unsecured loan or asset finance, repaid as consultation fees come in. In England, NHS Pharmacy First started on 31 January 2024, and Community Pharmacy England's guidance says a consultation room meeting the Terms of Service requirements is a prerequisite for providing it, so a pharmacy with an exemption from the consultation room requirement cannot offer the service from another area. We arrange fit out funding for pharmacies adding clinical services.

• The room. Space, privacy and access that meet the Terms of Service.
• Equipment. The service specification names one item, an otoscope for ear examinations, which distance selling pharmacies do not need. A thermometer, tongue depressors and a small torch are suggested extras.
• Private services. The same room can host vaccinations and private clinics, which strengthens the case for funding it.

Community Pharmacy England answers common questions in its Pharmacy First FAQs. See practice refurbishment finance, or get instant quotes for the work.