This is part 4 of a 6-part series focused on how to get started opening a new pharmacy.
All the research you have done in starting or acquiring a pharmacy is essential. And the plans you have developed for making your pharmacy a success are critical. But turning your research and plans into reality requires that you secure financing.
What creditors need to see
To prove to creditors that your business is a sound bet, you’ll need to show you’re financially responsible personally and professionally.
That’s right, your personal financial picture will be one of the risk factors that banks review in deciding whether to loan you money for your pharmacy.
Do you know your credit score? Most banks will review credit scores to determine your interest rates and how those rank against the national average.
Banks also will want to see your personal financial statements, including what you own, (your assets), and what you owe (your liabilities) to calculate your net worth.
You’ll need a solid business plan with all of the documentation and numbers to prove you’ll be able to pay back what you borrow. Be prepared to show projections of business expenses, revenue and net income, usually for three years, depending on the lender. Don’t be intimidated by the need to develop your business plan. RxOwnership® advisors specialize in helping new pharmacy owners through this process with confidential, no-fee consultations.
To finance the purchase of an existing pharmacy, you’ll need additional documentation, most of which you will collect in determining the valuation of the business, another area where RxOwnership provides no-cost assistance. Be prepared with three years of P&Ls(profit and loss statements), balance sheets, script counts and tax documents.
