As a current or aspiring pharmacy owner seeking financing you may find yourself considering various sources of funding. Local banks may fall within your geographical comfort zone; however, financing from Live Oak Bank could offer you a better alternative to get the money you need.
Let’s take a look at Live Oak Bank compared to your local bank.
|Live Oak Bank||Local Bank|
|Dedicated Pharmacy lending team that understands pharmacy value and financing needs of the industry||Lender works across various industries, generally unfamiliar with pharmacy financial statements|
|Lends capital based on the pharmacy’s cash flow||Lends capital based on 80-85% of the hard assets/real estate value with no consideration for intangible assets|
|Lends on the intangible assets of the pharmacy, including goodwill, the owner’s hard work and business reputation||Owner gains no credit for the intangible assets and business reputation if real estate value is not adequate|
|Long term loans with no balloon payments allowing for lower monthly payments, improved cash flow||Shorter loan terms that can include balloon payments, offsetting the lower interest rate offered|
|All appraisal and other costs included in loan proceeds||Higher out-of-pocket cost for buyer and seller|
|Simple loan structure that includes working capital and seller carry options to satisfy any required down payment||Complex loan structure that can have as many as four loans to satisfy one request|
|No prepayment penalty||Prepayment penalties that may offset lower interest|
|Prompt and expert service, typically fund within 30 to 60 days||Long process with layers of approvals|
|Lease options for workflow and automation equipment include no money down and $1.00 buyouts||Unpredictable payments, money required at lease signing and often surprising fees at end of lease|