Broker Carl Valencia secured a £300,000 package combining a term loan and revolving facility to support a pharmacy purchase.
Acquiring a single pharmacy from a larger group can be challenging, particularly when full audited accounts aren’t available. In this case, an experienced pharmacist sought to purchase a standalone site, but only management accounts were available — adding complexity to the funding process.
Broker Carl Valencia successfully structured a £300,000 funding package, combining a senior term loan with a revolving credit facility. The senior term loan provided £240,000 at 80% LTV, over a 15-year term, at a highly competitive rate of 2.30% above Base Rate (currently 2.50%). The facility was secured against the leasehold property with additional security via a mortgage debenture and directors’ personal guarantee.
The package was completed and drawn down within just over 12 weeks, a strong turnaround given the complexity of the transaction. This structure allowed the client to not only complete the acquisition but also secure stock from day one and maintain healthy cashflow in the early months of ownership. Under new management, the pharmacy is now positioned for sustainable growth.
Key Highlights
- Broker: Carl Valencia – arranged tailored funding package.
- £300,000 total facility secured.
- Senior Term Loan: £240,000 (80% LTV, 15-year term).
- Competitive rate: 2.30% above Base Rate (2.50%).
- Revolving credit facility provided for stock and cashflow support.
- Completed in just over 12 weeks, despite complexity of acquiring from a group.