Funding for pharmacists buying their first branch, independents investing in automation, and groups building a portfolio.
What we arrange for pharmacies
- Acquisition funding for single branches and multi-site portfolios
- Commercial mortgages on freehold pharmacy premises
- Dispensing robotics and automation finance
- Working capital for stock, cash flow timing and reimbursement gaps
- Refinancing existing pharmacy borrowing
How lenders value a pharmacy
A pharmacy is generally assessed on EBITDA together with the value of its NHS or Health and Social Care contract income. The contract is central: it is what makes the business lendable, and changes to the contractual framework are watched closely by lenders.
That scrutiny cuts both ways. Pharmacy remains a sector lenders understand and want to lend to, but proposals are examined carefully, and a case that does not address contract stability and income mix directly will struggle. Where you sit on services versus dispensing volume matters to the assessment.
What lenders will actually do
- Valuation basis: EBITDA multiple alongside the value of NHS or Health and Social Care contract income, with the balance of dispensing versus services affecting where a branch lands in the range.
- Sector-specific products: a small number of healthcare lending teams offer wholesaler-supported pharmacy loans and finance against PPD9s. These are unusual and worth asking about specifically rather than accepting a generic term loan.
- Unsecured alternative: unsecured professions lending that covers pharmacy typically runs from around £30,000 to £500,000, with some growth facilities up to £2m, at rates from around 8% and no property security.
- Automation: robotic dispensing systems and EPOS are readily funded through small-ticket asset finance, spreading the cost across the equipment’s working life.
- Working capital: facilities sized around the stock-to-reimbursement cycle rather than generic overdraft limits.
Cash flow and reimbursement timing
The gap between buying stock and being reimbursed is a structural feature of running a pharmacy, and it tightens whenever purchase prices move against you. Working capital facilities sized around that cycle are usually a better answer than allowing it to absorb the business’s own cash.
Contract frameworks differ across the UK
Community pharmacy is contracted differently in England, Scotland, Wales and Northern Ireland, and the differences affect how lenders read your income. A valuation approach built around the English framework does not transfer directly to a Scottish or Northern Irish branch. We will assess your case against the framework you actually operate under.
Common questions
How is a pharmacy valued for lending purposes?
Typically on a multiple of EBITDA, with the NHS or HSC contract and the balance between dispensing and services heavily influencing where in the range a branch falls. Freehold premises are assessed separately from the business itself.
Can I buy a pharmacy without owning the premises?
Yes. Leasehold acquisitions are common and fundable, though the lease terms will form part of the lender’s assessment. A short unexpired term can be a genuine obstacle and is worth addressing before you go to market.
Can you fund a portfolio acquisition?
Yes. Multi-site and group deals are a distinct discipline, and we will build the case around the consolidated position rather than treating each branch separately.
All figures are indicative and subject to lender assessment, your circumstances, valuation and prevailing market conditions. Commercial mortgages and unregulated bridging loans are not regulated by the Financial Conduct Authority. Property offered as security may be at risk if you do not keep up repayments.
This page was last reviewed in September 2026 and is next scheduled for review in March 2027. Lending criteria change frequently, so contact us for current terms rather than relying on published figures.