benefits of live oak bank

Benefits of Live Oak Bank vs Your Local Bank

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