Fit-out finance · Pharmacy
Fit-out finance 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 fit-out finance works for pharmacy
Modern pharmacy layouts push the dispensary forward and build private consultation rooms for vaccinations and services, which means real construction rather than new shelving. Fit-out finance spreads joinery, lighting, flooring, signage and consultation-room build across the lease term rather than clearing the cash you need to hold stock. Match the term to the lease including options. If you are refitting in stages to keep trading, we can structure the facility to draw down in tranches as each stage completes.
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
Fit-out finance for pharmacy: the numbers
| Typical amounts | $20,000 – $1,500,000 |
|---|---|
| Term | 12–60 months |
| Indicative rates | 9.5% – 22% p.a. |
| Repayments | Monthly |
| Speed | 3–10 business days |
| 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 fit-out finance?
Fit-out finance is business lending used to fund the construction or refurbishment of commercial premises, including joinery, flooring, lighting, signage and the equipment installed. It typically combines secured equipment finance with an unsecured component for fixed works.
Can leasehold improvements be financed?
Yes, but usually not as secured equipment finance, because fixed improvements attach to a building the borrower does not own. Lenders fund them through unsecured facilities or specialist fit-out products, priced above standard asset finance.
How does a lease term affect fit-out finance?
Lenders will not normally amortise fit-out debt beyond the remaining term of the premises lease, including exercisable options. A five-year lease generally means a fit-out loan of five years or less.
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.