Need capital to buy inventory, expand shipping, or launch a new line of meds? B2B funding works differently than consumer loans. Lenders and investors want to see predictable margins, regulatory compliance, and stable supply chains. Below I’ll show the funding routes that actually fit pharmacy and medical-supply businesses and what to prepare before you ask for money.
Bank line of credit — Best for steady, short-term inventory buys. Works if you have clean bank statements and existing revenue. Expect flexible repayment but tighter approval rules in regulated sectors.
Invoice factoring — Sell unpaid invoices to a finance company to get 80–95% of the invoice value up front. Great when you’ve got B2B buyers who pay net-30/60 but you need immediate cash for purchase orders.
Merchant cash advance / revenue-based finance — Use future card or account receivables as collateral. Faster approval, higher cost. Use for short-term gaps, not long-term growth.
Equipment loans — For freezers, packaging lines, or automation. The equipment itself is collateral, so approval is easier and rates are often lower than unsecured loans.
Venture capital or angel investors — Fit when you plan to scale fast, build marketplace tech, or expand cross-border. Expect to give up equity and follow stricter reporting. Seed rounds usually start in the low hundreds of thousands and can go up into millions depending on traction.
Strategic partnerships — Large distributors or manufacturers sometimes fund smaller suppliers in exchange for exclusive supply terms or volume commitments. This can be low-cost capital plus distribution help.
Financial clarity — 12 months of P&L/bank statements, gross margins by product, and a simple cash-flow forecast showing how the funds will be used and when they’ll return value.
Compliance & documentation — Active pharmacy licenses, import/export permits, GMP or supplier certificates, and a clear returns/recall plan. Regulators in pharma matter more than in many industries — missing docs delay or kill deals.
Customer mix & contracts — Show who buys from you, average order size, and any signed purchase agreements. Recurring contracts make you much more attractive for invoice finance or VC.
Inventory controls — Demonstrate batch tracking, shelf-life policies, and cold-chain procedures if relevant. Lenders worry about write-offs from expired meds.
Clear ask and milestones — Say exactly how much you need, what it buys (e.g., 3 months of inventory to reach X monthly revenue), and two measurable milestones investors can check in 3–6 months.
Want a quick checklist emailed or a one-page pitch template? I can create either tailored to pharmacies and suppliers. Tell me which funding route you’re leaning toward and I’ll help you prepare.
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