How does PBM reimbursement timing affect pharmacy cash flow?
When a pharmacy dispenses a prescription, payment from the PBM typically arrives 14–45 days later. DIR fees add another layer of complexity — they are deducted retroactively, sometimes 6–18 months after the original prescription was dispensed, based on quality metrics the pharmacy couldn't fully control at the time of service. This creates cash flow gaps even for highly profitable pharmacies.
Can an independent pharmacy compete with chains using business funding?
Yes. Working capital gives independent pharmacies the ability to invest in automation, specialty medications inventory, improved patient services, and marketing — areas where independents can genuinely compete with chains based on personalized service. Funding a dispensing robot, for example, dramatically improves throughput and reduces labor costs.
What credit score do I need for pharmacy funding?
Programs start at 500 FICO. Scores of 620+ access more competitive rates. Strong prescription volume and consistent bank deposits can offset lower personal credit scores for smaller funding amounts.
Can I get funding to acquire another pharmacy?
Yes. Pharmacy acquisition financing is available through our term loan programs. We evaluate the acquired pharmacy's prescription volume and revenue, not just your current financials, to structure appropriate funding.
Is compounding pharmacy funding different from retail pharmacy funding?
Compounding pharmacies qualify for the same programs as retail pharmacies. However, compounding pharmacies often have higher average revenue per prescription and different PBM exposure, which may affect how your revenue is evaluated. Many compounding pharmacies have stronger bank deposits relative to prescription count, which benefits funding qualification.
What is 340B program capital and can I get funding for it?
Pharmacies operating under the 340B Drug Pricing Program have specific working capital needs related to split billing, contract pharmacy relationships, and inventory management. Working capital funding can support 340B-related cash flow requirements without restricting the specific use of funds within the 340B structure.
Can I finance an automated dispensing robot for my pharmacy?
Yes. Dispensing robots, counting machines, automated storage systems, and IV compounding equipment qualify for equipment financing with rates from 5.9% APR. The equipment serves as its own collateral, and Section 179 tax deductions may apply to the purchase.
How fast can a pharmacy get funded?
Qualified pharmacies receive same-day to 48-hour ACH deposits for working capital. Equipment financing closes in 2–7 business days with a vendor quote.
Can I use funding to expand my pharmacy's clinical services?
Yes. Clinical service buildout — immunization programs, medication therapy management, point-of-care testing equipment, diabetes education — are eligible uses of working capital for pharmacy businesses.
Does it matter if my pharmacy has declining PBM reimbursement rates?
Declining reimbursement is a documented industry-wide trend. Lenders who understand pharmacy evaluate your total deposits and expense management, not just reimbursement rates in isolation. If your deposits remain consistent despite reimbursement pressure, your qualification is not negatively affected by the rate decline itself.