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Types of Financing
Traditional types of financing for buyers.
Traditionally, financing is classified as short-term or long-term:
Short-term financing is defined as financing with a term of less than one year in duration. Typically, short-term financing takes the form of dating (extended payment terms) and short-term notes. Short-term financing is typically not appropriate to fund the purchase of a pharmacy, unless the borrower expects to be able to repay debt very quickly.
Long-term financing typically remains in effect for more than a year. Long-term financing generally is required when an owner purchases an existing pharmacy or builds a store from the ground up. As an example, long-term financing from McKesson frequently takes the form of a promissory note with equal amortization of the principal amount.
From financial institutions to family members, there are many potential sources of funding. Determining the best source for you depends on your individual situation.