Are you seeking bank funding for your first pharmacy purchase? Here’s what you need to know

Image: Jiří Suchý for Unsplash

The needs-driven nature of the pharmacy sector and the vital role pharmacies play in supporting the NHS and their communities underpins banks’ willingness to lend to first-time pharmacy buyers, but only to suitably qualified Pharmacists or businesses with a strong structure in place.

While this healthy lender appetite means more Pharmacists can leap to buy their first pharmacy, either as individuals or in partnership, securing funding can still feel a bit daunting. So, here’s a simple breakdown of what you need to know about getting bank funding for your first pharmacy purchase, to help ease the load.

Why buy your own pharmacy?

It’s a valid question, especially as employed Pharmacists are already well paid (average salaries are currently around £51,000, or £33 per hour).

Here are some reasons why ownership might make sense for you:

• Long-term potential – pay rates may fluctuate over time, but ownership offers scope for much higher returns than employment
• Entrepreneurial opportunity – many Pharmacists enjoy the independence of driving their own business forward
• Evolving role of pharmacies – services have expanded beyond dispensing, with pharmacies now being central to healthcare provision in areas like vaccinations, weight loss, and blood pressure monitoring. Owners can adapt quickly to new services and build more sustainable businesses

Understand what lenders look for

Banks are willing to lend, but they want reassurance that applicants understand the sector itself and the associated risks. Key areas they assess include:

• Experience and background – most banks expect buyers to be qualified Pharmacists with solid experience. Ideally, you’ll be on the GPhC register and have a good track record of responsibility
• Management skills – lenders like to see evidence of leadership, people management, and commercial acumen within pharmacy
• Financial understanding – a strong grasp of how income, costs, NHS payments and supplier arrangements work is essential

The importance of a business plan

A well-prepared business plan is your chance to demonstrate both your knowledge and your vision. It should clearly outline:

• Background of the purchase and why you’re suited to running the business
• Whether it’s a freehold or leasehold purchase
• Purchase price and proposed ownership/funding structure
• Current scripts and key stakeholder relationships
• Local competitors
• Staffing structure and costs
• Historic performance and 24-month forecasts
• Any new initiatives planned

A clear and realistic financial forecast is especially important. Banks need to see not only how the business performs now, but how your intended plans will impact on future growth and sustainability.

Deposits and funding structures

Banks typically lend up to 80% to 85% against the goodwill of a pharmacy, and up to 100% of the freehold property if the pharmacy premises is included.

• Deposits – a minimum personal deposit of around 20% is usually required
• Working capital – additional funds may be needed for stock, fees, or refurbishment
• Flexibility – some banks can tailor repayment schedules or funding structures depending on your circumstances

Getting the right support

Funding can be complex, but you don’t need to face it alone. A specialist broker can help identify the right lender, negotiate competitive terms, and structure funding to suit your goals.

At Christie Finance, we’ve supported many first-time pharmacy buyers in securing the funding they need. We’ll guide you through the journey, from planning and preparation right through to completion.

To speak about funding for your first pharmacy purchase, get in touch with Gary Boyce: gary.boyce@christiefinance.com or +44 (0) 7974 800 752