Getting a bank loan is probably the most vital part of starting any business. However getting the best deal can be even more vital says broker Tom Rocks.
Tom, who runs Toms Rocks Finance urges pharmacy owners to take time out and do careful research when applying for loans.
“Bank loans are essential to business because it’s a massive capital investment. In order to start off with a stable footing it’s important to have the right bank with you and the right terms of the loans,” he said.
Tom said he can help to provide pharmacy business loans from £100k to £10m.
“It’s best to give the hassle of getting a loan to somebody who knows the banks, somebody who will work on your behalf, and that’s where a broker comes in. A reliable authorised broker will come and speak to the banks on your behalf and will make it a hassle free process.”
He said the way bank loans work are every similar to the way car and home insurance works.
“My home insurance was up for renewal a month ago and the price was two times the price it was for the previous year. They’re relying on me to say just renew and just ignore so it gets renewed automatically.
“Like home insurance and car insurance there are a pitfalls. The banks will often have a break clause and might offer you a advantageous rate for two, three or five years. At that break point the interest rate charges or cost of burrowing will go up automatically.
“When you’re busy at front of shop, checking scripts and buying from wholesalers, you’re not going to be looking at that, which is why it’s important somebody like a broker is getting you the loan. After two, three or five years I would contact you again to review the cost and say ‘look this is going up in cost, let’s change it again and get an even better deal.’”
Some tips for pharmacy owners:
1. “Check the small print - take out time to do this. The devil is in the detail.”
2. “I would remind them that a bank is only a retailer, they’re just like a supermarket but for money.”
3. “They have to ensure they’re getting the best terms they possibly can. A pharmacy owner is a desirable client for any bank. However they don’t always appreciate that there is a better deal available next door or via a broker.”
Tom added that the idea of an “old fashioned bank manager” has long disappeared. He said: “I offer independence and ‘a go to person’ who’s always there.
For more information go to www.tomrocksfinance.co.uk