Now you can listen to our blog post, "Loans While On Employment Insurance Benefits" while…
Pharmacy in Canada is currently under the stress of funds. Any new source of revenue is likely to be offset by reductions. The major reason behind this is the provincial government across the country who is finding ways to save by cutting the drug budget line.
British Columbia, for instance, was the leader in the scope of practicing pharmacy, but it is now poised to become the only province without pharmacists prescribing for minor ailments. Although the pharmacists’ scope is limited here, most Canadian provincial governments that authorize pharmacist-prescribing for minor ailments do not pay for these services.
Before moving onto the funding options for the pharmacy business, it is mandatory to see the cost of opening a pharmacy in Canada.
Cost of a Pharmacy Business in Canada
The cost of pharmacy varies depending on the location, inventory, and staffing cost. However, to give you an estimate, you will need $350k-$450k for starting your pharmacy business in Canada. This may sound daunting and overwhelming to start, but it can be overcome with the grants and funding options especially from the government.
Major expenses of a pharmacy business include rent of physical location, the staffing cost, and the inventory to start with. Along with this, you will have to manage other finances as well, so before starting make sure you have a substantial amount of money.
So, where should one look for funding for the pharmacy business? The one-word answer is Government itself. Here is how.
Pharmacy Business Funding Options
If you have decided to start your small business, whether it is of pharmacy or not, government funding is definitely a way to get you the initial start you want. It can do so by covering up most of your startup costs.
There are various government funding options available that can kick start your startup, expand it, get you the necessary tools and equipment and provide you with supplies and staff. It can also cover all of your marketing starts and more to give your business a push. For this, all you need to do is to start your own pharmacy business in Canada.
There are three major Government funding programs that can help you start your pharmacy business. These three programs are following:
- Government grants
- Government loans
- Tax breaks and tax credit breaks from the government
These three major programs are available across Canada in all the local, provincial and federal capacity. Also, there are several platforms that help you apply for government grants and make your application approved faster.
More Ways to Fund your Pharmacy Business
If you are having difficulty acquiring a loan for your pharmacy business from Government, you can try a few other avenues mentioned below.
Business Line of Credit
A business line of credit allows you as a borrower to get the funds needed and pay interest on the amount used. This type of fund is great to help you cover your additional costs of the business and cash flow shortages. There is no limit on where to use it; however, the most common uses of this fund are marketing, advertising, maintenance, and labor.
Merchant Cash Advance
A merchant cash advance is a type of advance payment that is usually paid in a lump sum to support a business. Here the method of repayment is assumed with the future sales. If you are opening a pharmacy, this loan can be a valuable option for you. You can use this money for the upfront cash and inventory.
As pharmacies are sensitive businesses and require a lot of safety equipment to operate, an equipment loan can help offset the initial costs of pharmaceutical equipment. This loan can be used for anything including personal protective equipment, flasks, and beakers, mortar and pestle, cash register, autoclave, and file management database. These types of loans are backed by the equipment itself. That is, if you default on the loan, the lender can simply take the equipment back from you.
Read More: Get Personal Loans in Canada
Which loan is best for me?
If you are just starting out your pharmacy business, an equipment loan might work best for your business as you will need a lot of money upfront to buy equipment. If you already have the equipment and want to support to cost of running this equipment, then a business loan will do more good to you than any other fund. A business loan is also more suitable for a pharmacy as the expenses will be more varied than the cost of buying equipment.
What to Consider Before Applying
Before applying for Pharmacy funding in Canada, it is mandatory for you to have a solid business plan. If you do not have a business plan yet, take the expert help and access your business plan today. Once you have it, your funding database will allow you to find pharmacy business options. You can contact a business plan service provider or a funding advisor to get the right guidance on it.
This is the perfect and easiest way to start your pharmacy business in Canada. Once you have a business plan, the next step is to find government plans that can help you fund your pharmacy business.
The Bottom Line
Getting the funding for your pharmacy business in Canada is an easy and smooth process and takes anywhere between one week to three months for approval depending on the lender. If you are applying with banks, the approval may take longer. However, the lenders tend to approve the loans faster.
In view of the large number of funds required at the start, it is wise to apply for a loan. But make sure you do your research and understand what you need. Finding the right loan with the right terms can cover the stones of a successful business for you. Fill out the application form today and register yourself for future success.
If you have doubts about what lenders or loans to pick, just ping us a message in the contact us section and we will refer you to the best of the best in the business according to your needs. Let’s put your plans into action!