Funding for New York Independent Pharmacies

Paying the wholesaler, waiting on the payer

An independent pharmacy buys medications from wholesalers on regular payment cycles. It dispenses to patients, and for most prescriptions the pharmacy is reimbursed by a payer, such as an insurance plan or pharmacy benefit manager, rather than by the patient directly. The pharmacy pays its wholesaler on time, and the reimbursement comes later, sometimes lower than expected.

Inventory is also valuable. A shelf full of medications represents a large amount of cash, and some products turn slowly or expire before they sell.

Where cash gets squeezed

• Expensive drugs. A single high-cost prescription can use a large portion of the pharmacy's wholesaler credit, and the reimbursement is due later.
• Reimbursement changes. Payers set their own rates and rules, and reimbursements can shift. A pharmacy cannot always predict what it will be paid.
• Slow-moving stock. Rarely prescribed items can sit for months.
• Payroll. Pharmacists and technicians are paid on schedule, and the shop often needs longer hours than other retailers.

Services that add equipment and staff

Compounding

Compounding needs equipment, ingredients and trained staff, and can set a pharmacy apart.

Delivery

Home delivery requires vehicles, drivers and scheduling systems.

Vaccines and clinical services

Adding services takes training, supplies and space. They can bring in new patients but the setup is paid for first.

Technology

Dispensing software, automation and inventory systems improve accuracy and speed but cost money to buy and set up.

Inventory discipline and the wholesaler relationship

A pharmacy's relationship with its wholesaler is a cash lever. Staying current on payments protects delivery terms and access to products. Falling behind can trigger limits on how much you can order, which affects your ability to fill prescriptions.

Review your inventory regularly for items that haven't moved in months. Returning or selling slow stock frees cash for faster-moving products. For new prescriptions, check what payers actually reimburse before you stock an expensive item. A funding request is easier to size when you know the amounts involved: your average weekly purchases, your average reimbursement delay and the value of your slowest stock.

Illustration and application

For illustration only: a pharmacy that stocks an additional $35,000 of medications to serve a new clinic nearby will pay its wholesaler for the stock on one schedule, then be reimbursed for each prescription on another. The owner should look at how fast the new stock turns over and what payers actually reimburse, before purchasing.

We offer $25,000 to $5,000,000, funded in as little as 24 hours. FICO 500 and up considered, about three months of business bank statements and no tax returns. The application takes five minutes and uses a soft credit pull. Sole proprietors can apply. Apply here.