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Pharmacy Business Loans: Best Options for Pharmacists

Pharmacy giants like CVS and Walgreens are everywhere. However, it is still possible to open and grow an independent pharmacy. With pharmacy loans, you can receive the funding you need to meet your goals, no matter how far-fetched they may seem.

Pharmacy Business Loans and Financing
Anna Baluch
Written by:Anna Baluch
Finance Freelance Copywriter

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Since the startup costs to open a pharmacy are sky-high, you’ll need hundreds of thousands of dollars right off the bat. Once your pharmacy is up and running, you may want to invest in new revenue sources like health screenings, vaccines, and health improvement programs. By doing so, you can compete with big-name chain pharmacies and increase your chances of success.

Our Experts compiled this handy list of the best pharmacy business loans to help you find the best financing options. Before you accept any loan offer, be sure to shop around to ensure you receive the best rates and terms.

Top Picks for Pharmacy Business Loans by

Top Picks for Pharmacy Business Loans

There is no shortage of small business loans for pharmacists on the market. Each one has its own unique features, making it important to compare all your options. In this review we highlight the terms, rates and fees of each lender and explain what makes them a good option. We also share potential downsides of each lender, and provide a rating methodology you can use to select the best option for your needs.


Best Pharmacy Business Loans for 2023 - Full Overview

Best Overall
Lendzi logo

Lendzi: Best for Pharmacy Businesseses With High Revenue

Factor Rate
Starting at 1.10
Loan Amounts
Up to $4 million
Min. Annual Revenue
Key Features
  • Borrow up to $4 million in working capital
  • Min. credit score: at least 500
  • Min. time in business: 6 months
  • Equipment financing up to $2 million
  • Business line of credit up to $250,000
  • See your options without hurting your credit
  • Flexible terms: 3 to 15 months
  • Excellent customer reviews on independent review sites
  • Get funding in as little as 24 hours
Pros & Cons
  • Simple application
  • Excellent customer service
  • Bad credit accepted
  • Fast funding times
  • Multiple loan options
  • Annual income requirement may be high
  • Startups will not qualify

Lendzi is our top pick for pharmacy businesses with high revenue. If you’ve been denied elsewhere and have high business revenue, we highly recommend reaching out to Lendzi. The company was founded in 2020 and works diligently to get borrowers the funding they need, regardless of credit. Lendzi is a direct lender and a partner with over 75 other lenders, giving them access to hundreds of different types of loans. This increases your odds substantially at getting approved for a small business loan.


Main Features

The three products that Lendzi offers for bad credit pharmacy loans are merchant cash advances, working capital loans, and equipment financing. Merchant cash advances require a credit score of 525, have terms of three to 15 months, and loan amounts of $5,000 to $400,000. Working capital loans require a score of just 500, also have terms of three to 15 months, and loan amounts go up to $400,000. If you need to purchase equipment, we recommend equipment financing which goes up to $2 million. And because the equipment acts as collateral, rates are typically much lower. To qualify for any loan from Lendzi, you need to be in business for at least six months and have $180,000 or more in annual revenue. 

Lendzi is our top pick for both bad credit pharmacy loans and excellent customer satisfaction ratings. Having bad credit shouldn’t stand in your way of acquiring funding and growing your business, and Lendzi wants to get you the funding you need.
Backd business loans

Backd: Best for Cheapest Interest Rates

Factor Rate
Starting at 1.10
Loan Amounts
Up to $2 million
Min. Annual Revenue
Key Features
  • Borrow up to $2 million
  • Min. Credit Score: 640
  • Min. Time in Business: 2 years
  • Industry best factor rate for MCA - as low as 1.10
  • APR for the Line of credit product starts at 35%
  • Flexible repayment terms up to 16 months
  • Get funding in as little as 24 hours
  • Check your rate with a soft credit pull
Pros & Cons
  • Easy online application
  • Instant lending decisions
  • Fast funding times
  • Flexible payment terms
  • Large loan amounts
  • No collateral required
  • Rates and fees not disclosed
  • Startups will not qualify

If you run a pharmacy and are in need of a loan to expand your business, hire more pharmacists, or cover marketing expenses, Backd may be able to offer the funding solutions you need. Founded in 2018, Backd was created to provide small businesses with loans tailored specifically to them. They offer both working capital loans and business lines of credit - keeping you in control of the financing you need.


Main Features

Working capital loans from Backd range from $10,000 to $2 million with terms up to 16 months. Payments are made daily, weekly, or semi-monthly. Working capital loans are best for pharmacies that are looking to fund a one-time project. If you need access to funds more often, we recommend a business line of credit from Backd. These range from $10,000 to $750,000 and allow you to continually draw on your line as you need it. To qualify for either option, you need to be in business for two years, have at least $300,000 in annual revenue, and 640+ FICO score.

If you’ve been denied elsewhere, Backd may be able to offer you the funding you need. Their application is quick and your credit will not be impacted, so we recommend applying and seeing what the company is able to offer you.

National Funding: Best For Working Capital Loans

Factor Rate
Starting at 1.10
Loan Amounts
Up to $500K
Min. Annual Revenue
Key Features
  • Min. Time in Business: 6 months
  • Min. Credit Score 600
  • Borrow up to $500,000 in working capital
  • Equipment financing up to $150,000
  • Factor rate From 1.10
  • Fast funding
  • Early payment discounts
  • Equipment financing repayment 2-5 years
  • Working capital repayment 4 months - 2 years
Pros & Cons
  • Early repayment discount: With a working capital loan, you’ll earn a 7% discount on your remaining balance if you repay it in full within the first 100 days.
  • Solid reputation: National Funding has been around for over 20 years and funded over $4.5 billion for a variety of business owners to date.
  • Fast funding: You can receive your money within 24 hours, depending on when you apply.
  • Daily or weekly repayments: National Funding requires daily or weekly repayments on their working capital loans, which might cause cash flow issues.
  • Personal guarantee required: Even though you won’t need collateral for a working capital loan, you will need to personally guarantee it.
  • No special interest loans: While National Funding states it offers business loans to minorities, it doesn’t offer any special loan products for them.

National Funding offers working capital loans for a variety of businesses, including pharmacies. If you need to cover everyday costs like rent, payroll, and utilities, you can get approved for up to $500,000 and potentially save money for paying off your loan early.


Main Features

National Funding’s working capital business loans range from $5,000 to $500,000 with repayment terms between four months and two years. The pay rate starts at 1.10. To take out a working capital loan, you’ll need a minimum credit score of 600, a business track record of at least six months, and an annual revenue of $250,000 or more.

If your pharmacy needs cash to cover everyday operations, you might want to explore National Funding. With one of its working capital loans, you can receive up to $500,000 within 24 hours of when you get approved. Just make sure you earn sufficient revenue and feel comfortable for daily or weekly repayments.


Min. Annual Revenue
Min. Time in Business
6 months
Min. Credit Score
Key Features
  • Borrow up to Up to $250,000 in term loans
  • Borrow up to $400,000 in working capital
  • Term loan rates range between 8-25%
  • Working capital factor rate starts at 1.09
  • Simple application process
  • As soon as same day funding
  • Open to high-risk industries
Pros & Cons
  • Simple application process
  • High borrowing limits
  • Long repayment terms
  • Higher interest rates
  • Fees

Credibly is a Michigan-based online lender that offers long-term business expansion loans. If you’re an established pharmacy with plans to expand, a long-term business expansion loan can be a solid choice. You may use the funds to move a larger location, open a second store in a new area, and hire additional pharmacists and staff.

Main Features

Credibly doesn’t disclose its credit score, annual revenue, and minimum time in business requirements for its long-term business expansion loan. However, you can borrow anywhere from $150,000 to $5,000,000 with repayment terms between 3 to 10 years. APRs range from 8% to 25%.

A long-term business expansion loan from Credibly is a solid pick if you’re ready to take your established pharmacy to new heights.
biz2credit review

Biz2Credit: Best for Commercial Real Estate Loans

Interest rates
Starting at 7.99%
Loan Amounts
$25K to $500K
Min. Annual Revenue
Key Features
  • Working capital up to $2 million
  • Term loans up to $500,000
  • Term loan interest rate starts at 7.99%
  • Loan Repayment 12-36 months terms
  • Variable APR depending on the applicant
  • Funding in 72 hours
  • Soft credit pull
Pros & Cons
  • Fast funding: You can receive your funds within 72 hours of approval.
  • High borrowing limits: Biz2Credit’s commercial real estate loans go up to $6 million.
  • Quick application: Once you fill out an application, you’ll find out what you’re eligible for in minutes.
  • Strict eligibility criteria: Biz2Credit does have rigorous requirements that may be difficult to meet.
  • Additional fees: While fees aren’t clearly disclosed, you may have to pay between 1% and 6% in origination fees.

Founded in 2007, Biz2Credit offers loans to small businesses, including commercial real estate loans. If you need to buy a property for your pharmacy, these loans, which work a lot like mortgages, can come in handy.


Main Features

Biz2Credit’s commercial real estate loans range from $250,000 to $6 million with terms between 12 and 36 months. APRs start at 10%. For a chance at approval, you need a minimum credit score of 660, at least $250,000 in annual revenue, and an 18-month business track record.

If you have good credit, a commercial real estate loan from Biz2Credit can make it easier to cover the costs of an attractive, modern space for your pharmacy.
fora financial logo reviewed on

Fora Financial: Best for Short-Term Loans

Factor Rate
Loan Amounts
$5K-$1.4 million
Min. Monthly Revenue
Key Features
  • Min. time in business: 6 months
  • Min. credit score: 550+
  • Borrow up to $1.4 million
  • Factor rate from 1.15 to 1.40
  • Ideal for plenty of industries
  • Approval not solely credit based
  • Early payoff discounts
Pros & Cons
  • Leninant requirements: Fora will look beyond your credit when reviewing your application.
  • Quick application: You can apply online within minutes.
  • Fast funding: Depending on when you submit your application, you may receive the funds in as little as 72 hours.
  • Rates might be high: If you don’t have the best credit, you can expect higher than average interest rates.
  • Fees: You might have to pay origination fees, late fees, and other fees in addition to interest.

Fora Financial is a fintech lender that offers short-term loans to all types of borrowers, including those with bad credit. These loans can help your pharmacy solve cash flow shortages and cover any emergency expenses that may pop up. 


Main Features

To secure a Fora short-term loan for your pharmacy business, you’ll need a credit score of at least 500, $12,000 minimum in earnings, and six months of operations under your belt. Loan amounts range from $5,000 to $500,000 with terms between four and 15 months.

A short-term loan from Fora Financial is worth considering if you can’t wait long for funding and have various day-to-day and unexpected expenses to cover.
gokapital review

GoKapital: Best for Multiple Loan Options

25% - 75%
Loan Amounts
$10K to $250K
Min. Annual Revenue
Key Features
  • Borrow up to $250,000
  • Loan Terms 2 to 10 years
  • Small business term loans APR. 25% - 75%
  • Wide range of loan offers
  • Simple application process
  • Instant pre-approval
  • Min, credit score: 500
  • Min. time in business 2 years
Pros & Cons
  • Easy online application
  • Fast lending decision and funding times
  • Early payment discounts
  • Available in all 50 states
  • All industries qualify
  • Poor credit accepted
  • Annual income requirements are high
  • Rates may be high on certain loan types

GoKapital was founded in 2013 and offers six different types of loans that pharmacy businesses can apply for, in addition to commercial property loans and real estate investment loans. Because they do not exclude any types of industries, this lender is ideal for those in the pharmacy business. Types of loans include business term loans, equipment financing, SBA loans, merchant cash advances, startup loans, and business lines of credit.


Main Features

GoKapital offers loans ranging from $5,000 to $5 million depending on the type of loan you apply for. Qualifications will vary, but the bare minimum accepted is a credit score of 500, business history of one year, and annual income of $240,000 or more. If your income isn’t this high, GoKapital does offer startup loans that require just $50,000 in annual revenue.

GoKapital is your one-stop shop for pharmacy loans. Whether you need a small business line of credit or a large expansion loan, GoKapital can help you secure the funding you need - all while offering competitive rates and fast funding times.

Main Features of the Best Pharmacy Business Loans

National Funding4.1
Fora Financial4
  • Min. Credit Score - N/A
  • Min. Time in Business - 12 months
  • Min. Annual Revenue - $100,000
  • Loan Amount - $10,000 to $2 million
  • Interest Rate - Not disclosed

How to Choose the Best Pharmacy Business Loans

  • Loan Features: Loan amounts, terms, and repayment plans vary from lender to lender. If you’d like to own your own pharmacy, large amounts, lengthy terms, and flexible repayments are a must.
  • Application process: Since it takes a lot of time to open and operate a pharmacy, an easy application you can complete in minutes is preferred. A prequalification option that allows you to check your offers without any impact to your credit score can be useful as well.
  • Interest rates and fees: Ideally, you’d choose loans that offer low interest rates and minimum to no fees. But this may not always be possible, especially if you’re a pharmacy startup.
  • Qualification process: Some loans cater to more established pharmacy owners while others are open to newer pharmacy businesses with limited credit, revenue, and time in business.
  • Customer support: As a pharmacy business owner, there’s a good chance you prefer easy access to customer support should you ever need it. This may be available via phone, email, live chat, or resources on the lender’s website.
  • Online user reviews: Third-party reviews and ratings on sites like Trustpilot and Better Business Bureau (BBB) provide an unbiased look at the lender’s reputation and track record.
  • Perks and Bonuses: In addition to funding, some pharmacy loans offer perks like hardship assistance, mentoring, and credit score monitoring.

The Pharmacy and Drug Store Industry in the United States

The pharmacy and drug store industry encompasses a variety of prescription and over-the-counter medications, health and beauty items, and other consumer goods. Its market size, which is measured by revenue, is $346.3 billion in 2022, making it clear that there is a huge demand for pharmacies. It’s no surprise that the pharmacy and drug industry is the 30th largest industry in the U.S.

When compared to the overall economy, the market size of pharmacies and drug stores has skyrocketed. Since federal funding for Medicare and Medicaid is likely to increase in 2021, there is great opportunity for pharmacy owners. You can support senior citizens and lower-income consumers with their prescription drugs they can purchase at subsidized rates.

The U.S. pharmacy market has also focused on specialty drugs, which are either limited in supply, require special handling, or very expensive. These drugs can treat both rare diseases, such as multiple sclerosis and more common conditions like arthritis.

The use of generic drugs, which are more affordable than their brand-name counterparts have increased as well. As a pharmacy owner, you can take advantage of these trends and grow your business.


What Are the Costs of Running a Pharmacy?

To start a pharmacy, you'll likely need between $880,000 and $1,800,000 per year in funding. Of course, your pharmacy location will play a vital role in how much you’ll need to pay for your commercial property, inventory, and staffing.

You can expect the majority of your funds to go toward inventory as the average pharmacy will turn over its inventory up to ten times per year and spend about $100,000 per month or anywhere between $600,000 and $1.2 million per year just on inventory.

Staffing is another significant expense you should prepare for as the average salary of a pharmacist is $128,710, according to the U.S. Bureau of Labor Statistics. You’ll also have to cover the costs of pharmacy technicians, which earn an average of $35,100 per year.


How to Use Pharmacy Loans?

There are many uses for pharmacy loans including:

  • Inventory: Since inventory will likely be your largest expense and you’ll need to replenish it on a regular basis, a pharmacy loan can come in handy. Ideally, you’d use the funds to buy your products in bulk and save as much as possible.
  • Remodel Your Pharmacy: One way to stand out among big-name pharmacy chains is to modernize your pharmacy. You can use your loan proceeds to buy iPads, televisions, comfortable furniture, and new lighting.
  • Working Capital: Working capital refers to ongoing, day-to-day costs like payroll, utilities, insurance, and taxes. A pharmacy loan may help you cover them, especially when you’re short on cash flow.
  • Hire More Staff: When you first start your venture, you may be the only pharmacist. However, once you expand, you might want to hire additional pharmacists and support staff to make your life easier. A pharmacy loan can allow you to do so.
  • Invest in New Technology: By using the latest and greatest technology, you can provide excellent service and remain competitive. You can use a loan to upgrade outdated tools and systems.


How to Qualify for Pharmacy Loans?

To increase your chances of getting approved for a pharmacy loan.

  • Start the Process Early: Since the approval and funding process can take weeks or even months, get started as soon as possible. Don’t wait until the exact moment you need money to shop around, compare offers, and fill out applications.
  • Check Your Credit: No matter what type of loans you apply for, your credit will likely be considered. While some lenders have rigorous credit requirements, others are more lenient. Regardless, it’s a good idea to review your credit reports, dispute any inaccuracies, and work to improve your credit score.
  • Develop a Sound Business Plan: A business plan can educate lenders about the goals you have with your pharmacy as well as how you intend to use the loan proceeds. Make sure it's professional, polished, and free of grammar and spelling mistakes.
  • Look for Secured Loans: If you don’t have the best credit and find it difficult to get approved for unsecured loans, you might want to consider secured business loans that require you to secure collateral, like your property or equipment. Keep in mind that if you default on your payments, the lender may seize your collateral.


Bottom Line

While running a pharmacy is expensive, it can also be very lucrative and rewarding. Fortunately, pharmacy loans can help you obtain the capital you need to launch and grow your business. Just make sure you only borrow what you need and repay your loans on time, every time.


*The required FICO score may be higher based on your relationship with American Express, credit history, and other factors.

About the Author

Anna Baluch

Anna Baluch

Freelance Copywriter

Freelance copywriter who enjoys writing for large publications as well as startups, small to medium sized businesses. Anna Baluch is a personal finance writer with over 7 years of experience covering topics related to mortgages, debt management, student loans, personal loans, and more.

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