Frequently asked
questions

There are a few stages to this answer, but the simplest is to talk to us and we’ll work to support you. As part of the terms and conditions of the loan agreement you must seek approval for any sale.

Distributions will depend on the free cash flow available. Any free cash above the 20% cap, assuming all payments in arrears to the equity funding loan have been made, are available to be paid as a distribution to the pharmacist.

Investment payments to the equity funding loan are made quarterly and paid as a % of free cash flow vs the amount borrowed from .
In general terms, free cash flow is calculated by the following calculation = EBITDA – Bank interest – approved capital expenditure – Bank amortisation – Tax

Yes, that is a possibility – contributing your own equity will reduce the required funding portion from the investment loan.

Typically depends on the ability for the pharmacy to repay both loans. A general rule of thumb is that the bank loan will be between 50% and 70% of the total loan amount. These numbers, however, are dependent on the pharmacy’s financials and the ability to service both loans.

Whilst providing you funds to purchase a pharmacy or a share in a pharmacy, the equity funding loan is also shouldering the downside risk in your purchase. The 20% p.a capped interest rate sets a fair point at which both parties share in the upside of the pharmacy.

You cannot be liable to SUCCESSion to more than your equity in the business, as the borrower’s liability is limited to the value of the pharmacy.

• Interest payments are only required to the extent that the pharmacy generates free cash.
• Lack of free cash flow for the purposes of meeting interest requirements does not create a default.