Frequently asked
questions

You can borrow up to 100% of the asset excluding GST. The exact % will depend on your circumstances, so get in touch and we can help you assess your needs (We swear this is the case, it’s not just a ploy for you to contact us…..)

It all depends on the asset you’re looking to finance… in general, if you’re taking out an individual asset loan, you will need to repay the loan within five years. Worthwhile picking up the phone and having a chat with us as depending on your circumstances, we might be able to organise alternate solutions.

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.

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.

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.

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

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

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.

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.

We won’t lie, you could go and do this yourself, but by using us it allows you to focus on the day to day running of your business. We provide you with choice of lender, convenience so you don’t have to do all the running around to find the best deals in the market, and we ensure the right solution tailored to your needs

Each client is different and will vary based on current debts, dependants, savings and your employment status (ie Full-time or Self Employed)

this can vary by lenders, but the following principles usually apply to all lenders

Full-time
six months

Self-employed
2 years financial and tax returns (we can help you find an alternative lender if you’ve owned your pharmacy for 12 months 😉

New to the industry?
Lenders usually require you to have been in the same industry for a minimum of 12 months

The good thing here is that pharmacists are included in the banks Medico policy – which means they will lend you (as a pharmacist) 90% of the value of the home.

Remember though, this doesn’t include other costs such as any government of conveyancer costs, so having a little more than the 10% will go a long way!

The short answer is yes, however the banks do have some requirements which we can discuss with you in more detail is this is something you’re looking to do.

Unfortunately, there is no clear-cut answer to this question… As it does depend on your financial history and the historical and projected financial performance of the pharmacy you’re looking to buy.

Typically, banks will allow you to borrow up to 75% of the business value. The answer can get more complicated so we suggest talking to one of our experts who can tell you more – after all, some of our team have spent more than 30 years working with the major banks so we are in a great position to help give you clarity on these types of questions!

At Kizmet, we understand that traditional loan structures can be a barrier when trying to purchase a pharmacy. Which is why we have developed unique financial solutions to help you. Might we suggest you check out our SUCCESSion product to see if it’s right for you!

We know pharmacy. We finance pharmacy. Not healthcare, just pharmacy. Our expertise across multiple facets of pharmacy and pharmacy ownership mean we understand the pharmacy landscape and that no two transactions are the same. We take the time to understand your goals so that we can tailor a financial solution to fit your needs.

We always recommended that you seek out independent financial and legal advice before buying a pharmacy. We have a broad network across financial, legal and accounting expertise. Our team are happy to refer you to several options across these industries to give you peace of mind and expertise in making what is a big decision!