Welcome to the PharmLine business Line of Credit
Every pharmacy owner knows that sometimes you need access to working capital to help you grow. Even the most successful small businesses experience late reimbursements, urgent unplanned expenses, and other short-term situations where cash flow is less than certain. In cases like these, access to some extra funds can mean the difference between closing your business or surviving the tough times and coming out on top.
When it comes to business financing, you’ve got an enormous array of different options to consider. A business line of credit is a popular choice among small business owners.
Read on to learn more about this type of financing, examples of why your business should have a line of credit, and how to apply.
What is a business line of credit?
A line of credit is a predetermined amount of funds that you can borrow from when you need to and pay back later. Unlike a traditional term loan, you can use the funds as and when you need them for business purchases like inventory, supplies, or operating expenses. Unlike a term loan which has a fixed monthly repayment, you can typically pay back your credit line anytime, without any early repayment fees.
A critical difference between lines of credit and term loans is that lines of credit are “revolving.” That means you can use the funds, up to your approved amount, then repay what you’ve used to make the funds available again. Term loans, on the other hand, are lump sum loans that you use once and repay once, with interest.
How you could benefit from a business line of credit
Every pharmacy owner needs access to funds to run their business, but sometimes there isn’t quite enough working capital available when you need it. You might be expecting a reimbursement and you get hit with an unexpected DIR, GER or BER fee, or you might need to purchase compliance packaging equipment. Situations like these may seriously affect your cash flow and even threaten the stability of your business.
If you’ve got a line of credit in place, however, you can handle these challenges with confidence, knowing you have access to the capital you’ll need.
Businesses commonly use their business line of credit as a tool to optimize cash flow and take advantage of new opportunities.
For example, a credit line can come in handy for things like:
- Managing through the coming DIR Fee transition to point-of sale
- Hiring new employees to meet a growing demand for your services
- Covering payroll
- Opening or expanding to a new location
- Purchasing inventory when you add new LTC or contract customers
- Running marketing campaigns
Pharmacy owners also commonly use their business line of credit to smooth their cash flow when they face things like making payroll during slow seasons, work shortages, or surviving a temporary dip in sales. In short, a business line of credit is useful for handling liquidity or cash flow volatility challenges that many owners commonly face.
A business line of credit can help you run your business with less stress since you will have access to funds when you need them most. A credit line is revolving and simple to use—especially if you’re used to business credit cards. Only pay for what you use. Once you receive your funds, you can repay to replenish your available credit limit, then draw again when you need it.
Consider a PharmLine Line of Credit
It used to be that a major bank was one of your only options for getting access to a business line of credit, but not anymore. Pharmacy owners now have the PharmLine solution which is faster, easier, and more flexible than applying for a line of credit with a bank.
HealthGrowth Capital is committed to helping pharmacy owners access to growth capital needed to succeed. Since 2016, HealthGrowth has helped hundreds of pharmacy owners achieve their financial and strategic operating goals.
Unlike a lump sum term loan, a PharmLine offer flexible access to funds you can use to optimize cash flow to cover expenses like payroll, insurance, marketing campaigns, and more.
How to apply for a PharmLine Line of Credit
You can apply online for a PharmLine line of credit in two simple steps. Unlike a traditional business loan application, you will not have to complete any paperwork to get started, and you can get a decision on the same day you apply.
Applying is safe and secure and will not impact your credit score. Simply enter your business information and connect your business banking account to apply. If you’re approved, you could receive fund as soon as the next business day.
Who is eligible for a PharmLine Line of Credit?
To qualify for a PharmLine line of credit, your business should meet the following requires:
- Based in the U.S.
- $10,000+ in monthly revenue
- 6+ months in business
- 600+ personal FICO score
- Business checking account