Commercial property loan · Pharmacy
Commercial property loan for pharmacy
Pharmacy finance is lending built around PBS reimbursement timing and heavy stock holdings, covering dispensary automation, store fit-outs, inventory funding and the purchase of a pharmacy business.
How a commercial property loan works for pharmacy
Pharmacies are location-dependent in a way few businesses are, and losing a lease next to a medical centre can be existential. Owning the premises removes that risk entirely. A commercial property loan typically needs a 20–30% deposit and is assessed on the pharmacy’s trading performance where it is owner-occupied. Lenders view a pharmacy tenancy well because the approval number ties the business to the site. Consider whether the property should be held personally, in a trust or in a super fund.
The cash-flow pattern we plan around
Daily retail and dispensing income against short wholesaler payment terms, with PBS reimbursement arriving on a set claim cycle after the medicine has been supplied.
What pharmacy typically fund
- Dispensary automation and robotic dispensing
- Store fit-out, shelving and refrigeration
- Inventory and wholesaler account funding
- Buying a pharmacy or a partnership share
- Point-of-sale and dispensing software
Commercial property loan for pharmacy: the numbers
| Typical amounts | $250,000 – $20,000,000 |
|---|---|
| Term | 12–360 months |
| Indicative rates | 6.2% – 9.9% p.a. |
| Repayments | Monthly |
| Speed | 2–6 weeks |
| Documents pharmacy usually need | ABN, pharmacist registration and pharmacy approval number · Two years of financials and script volume data · Equipment or fit-out quote, or contract of sale |
Rates are indicative, change without notice and depend on the lender, product, asset, term and your credit profile at the time of application. They are not an offer of finance. Comparison rates, where shown, are true only for the example given.
Key terms
Pharmacy business finance
Pharmacy business finance is lending to a registered-pharmacist-owned pharmacy, assessed on script volumes, PBS claim history and retail turnover, and used for acquisitions, fit-outs, automation and inventory.
PBS reimbursement gap
The PBS reimbursement gap is the period between supplying a subsidised medicine and receiving the Commonwealth subsidy, during which the pharmacy has already paid its wholesaler for the stock.
What is a commercial property loan?
A commercial property loan is a mortgage over non-residential property such as offices, warehouses, retail or industrial units. It can be full-doc, low-doc or lease-doc depending on how servicing is assessed.
Questions from pharmacy
How is a pharmacy purchase financed?
Pharmacy acquisition finance funds the purchase of an existing pharmacy against its PBS and retail income, goodwill and stock, with specialist pharmacy lenders and the major banks lending high proportions of the price to registered pharmacists. Lenders look at script numbers, PBS history, location and the buyer’s experience.
How do pharmacies fund stock between wholesaler terms and PBS reimbursement?
A line of credit or overdraft sized to the gap between wholesaler payment terms and the PBS claim cycle covers stock holdings, and trade finance can fund larger seasonal orders. Lenders like pharmacy because PBS income is government-backed, so pricing is sharp for established owners.
Can dispensary automation and a refit be financed?
Yes. Dispensing robots, automated storage, shelving, POS and the shop refit can be funded under one facility, with equipment financed over five to seven years and fit-out works repaid within the lease term. Suppliers and the shopfitter are paid as the work progresses.
Can a first-time pharmacy owner get finance?
Yes. Registered pharmacists buying their first pharmacy are financed on their experience, a business plan and the pharmacy’s history, usually with a deposit or a partnership with an experienced owner. Once the pharmacy has a year of trading under the new owner, refinancing to sharper terms is common.