Working capital is particularly essential for independent retail pharmacies because you need a consistent flow of money to keep your business running. In order to invest and grow the operation, capital is key.
The rule of thumb is to maintain working capital covering expenses for a minimum of three months. As a pharmacy owner, this can be a challenge.
You're paying for a long list of expenses that include: pharmaceutical licenses, insurance, fixed costs like rent and utilities, and variable costs, such as payroll and inventory. Together, they take away a large chunk of your profits. Meanwhile, many of your customers' prescriptions are paid by insurance companies, which are notoriously slow in paying, dispute claims, and are constantly fighting to negotiate lower rates. These realities lead to severe cash flow issues for drug store owners.
Biz2Credit helps by arranging financing for pharmacists in the form of business loans, lines of credit, cash advances, and other forms of financing that can ease any cash crunch. SBA Financing for Pharmacies, for example, is one of the emerging types of loans that Biz2Credit can coordinate.
Biz2Credit has extensive experience securing small business loans for pharmacies to keep their businesses running effectively.
Like all professionals who run successful businesses, pharmacies rely on qualified staff to run smoothly. Finding these workers can be difficult. Upon opening a pharmacy, owners typically need to make a significant upfront investment to fulfill obligations in human resources. Employees include pharmacists, pharmacy techs, cashiers, and sometimes office assistants who help with administrative duties.
Biz2Credit's platform is a great source for a variety of pharmacy lending options including business loans, lines of credit, cash advances and unsecured loans for pharmacies. Whether starting or expanding, entrepreneurs frequently require a quick infusion of cash. Biz2Credit can help.
Digitizing Customer Records
Converting customers' records from paper to digital files creates great efficiencies for pharmacies and their clients. The benefits for customer service are clear: digitizing client files creates an electronic record of prescription and purchase history as well as storing information for future purchases. Creating computer files of pharmacies can improve the quality of customer service. However, it can require a large investment of time and money.
Biz2Credit can assist throughout the process of practice lending for pharmacists by connecting them with the funding needed to complete the procedure.
Opening New Locations
Startup costs for new locations can be significant. Any pharmacist who has purchased or renovated a building or entered into a lease agreement knows that setting up a location is costly. Next comes the purchases of computers, software and equipment, the investment of setting up phone systems and electronic medical record systems, staffing costs and marketing expenses.
Biz2Credit can help secure financing for pharmacists who are seeking building purchases and leasing arrangements, as well as provide a wide variety of options to obtain the working capital needed to expand.
Pharmacy Finance Tips
PBA Health, a leading pharmacy services organization dedicated to independent community pharmacies, outlined
5 Accounting Mistakes for Pharmacists to Avoid, which include:
- Not knowing the state of your finances
- Not having a formal accounting system in place
- Failing to keep track of expenses
- Not staying on top of receivables and reimbursements
- Not hiring an accounting professional
Borrowing is becoming increasingly common for pharmacies today in the ever-evolving world of technology. Biz2Credit streamlines the process of securing pharmacist loans, making it efficient to acquire business loans. This allows pharmacists to focus on their practice, while getting the necessary funds to grow their business.
Health professionals, including pharmacists, face financial needs just like other business owners. For instance, pharmacies often face cash flow issues because of slow-paying insurance companies and disputed reimbursements. Combine that with the high costs of digitizing medical records, ever-increasing insurance rates, and the rising rents and other costs of running a pharmacy.
No one goes to pharmacy school because he or she wants to oversee finances. Biz2Credit can help remove the stress involved in pharmacy financing. Our team can help demystify the process and are experienced at successfully securing business loans for pharmacists.