Purchasing a pharmacy is a big decision – and for most buyers, one that comes with a need for finance. Whether you’re buying your first pharmacy or expanding your existing portfolio, understanding the steps involved in securing finance can help you move forward with confidence.
Here’s a breakdown of what to expect, and how to give yourself the best chance of success.
Understand What Lenders Are Looking For
Pharmacies are considered a strong asset by lenders due to their reliable cash flow, essential service nature, and professional owner-operators. However, pharmacy lending is also niche – and not all lenders understand the nuances of the industry.
Specialist brokers can help match you with lenders who:
- Understand pharmacy business models
- Offer more flexible terms
- Are comfortable funding goodwill (not just tangible assets)
Lenders will typically assess:
- Your personal experience in the pharmacy industry
- The strength of the pharmacy you’re purchasing (financials, location, staffing, etc.)
- Your personal financial position and borrowing history
- The purchase structure – i.e. are you buying as a sole trader, in partnership, or through a company or trust?
Get Your Documents in Order
You’ll need to provide several documents to support your application. These might include:
- Your CV and registration details
- Tax returns and financial statements (usually 2 years)
- Bank statements and asset/liability declarations
- Details of the pharmacy you’re purchasing, including Information Memorandum, financials, and lease agreements
Working with a finance broker can streamline this process – they’ll let you know exactly what’s needed and when.
Loan Pre-Assessment
Before making an offer, it’s a good idea to get a pre-assessment. This helps you:
- Understand your borrowing capacity
- Act quickly when the right opportunity arises
- Strengthen your position with the vendor
It also helps your broker test lender appetite and fine-tune your application strategy.
Make an Offer and Start the Formal Application
Once your offer is accepted, you’ll need to formalise your finance application. At this stage:
- Your broker prepares and submits your application to your chosen lender(s)
- The bank conducts due diligence on both you and the business
- You may be asked to provide additional documentation or answer clarifying questions
Loan Approval and Settlement
After successful assessment, the bank will issue a formal approval, outlining loan terms and conditions. You’ll then work with your solicitor, accountant, and broker to:
- Finalise loan documents
- Settle the purchase
- Transfer funds and complete the pharmacy acquisition
A good finance broker will coordinate with all parties to ensure the process is smooth and timelines are met.
Final Thoughts: Why Work with a Specialist Broker?
Pharmacy purchases involve unique risks, structures, and requirements. A broker who understands the pharmacy landscape can save you time, negotiate better terms, and present your application in the best possible light.
They’ll also act as your guide throughout the process, so you can stay focused on your future business and not all the paperwork.
Thinking about buying a pharmacy?
Our team of specialist brokers can help you explore your options, understand your borrowing capacity, and walk you through every step of the journey. Get in touch if you’d like to learn more or for a personalised finance assessment and recommendation.
Written by Andrew Whelan, General Manager – AP Group
AP Group are the leading pharmacy experts in Australia and specialise in helping first time buyers find the right pharmacy and secure the finance to support their purchase.
We connect existing owners with over 5000 ready and eager investors via our cutting-edge online Data Room. Our Data Room keeps confidential listing data secure and allows buyers to make informed decisions on each of our pharmacies for sale.
AP Group have built connections with all the major banks and a host of smaller lenders, ensuring that first time pharmacy buyers find a better deal.
About the Author:
When Andrew Whelan is not out pedalling his bike or looking after his two marvellous kids, he’s pedalling through pharmacy finance and strategy development.
Having been with AP Group since the beginning, Andrew has more than a decade experience in pharmacy and is an asset to the sales and finance division. He’s a numbers wizard, people person and sustainability champion — leading AP Group to achieve official Carbon Neutral Certification with Climate Active.
Before AP Group, Andrew spent more than a decade in the telecommunications and media industry including 7 years at Telstra in a variety of senior management roles and 3 years in the United Kingdom managing the commercial function for the British Sky Broadcasting — a time where it was the fastest growing broadband provider in the UK.
So it’s no surprise that he is well equipped to help customers with some of the biggest decisions they will ever make — buying a home or investing in a pharmacy — and helping to show them what’s truly possible.