8-min read Oct 20, 2022

Repayable Loans for Pharmacy: How to Apply & Use Them

Repayable Loans for Pharmacy: How to Apply & Use Them

Your pharmacy does well, but there’s always the chance that something out of the ordinary will arise. Events that aren’t in the budget can drain your financial reserves, and leave you wondering how to cover other expenses. For example, you may not be sure how to go about taking care of payroll. That’s where securing a Payro payroll loan will make a difference.

The key is to understand the application process, and how to ensure those funds are utilized for the intended purpose. Here are some of the basics that you need to know about the loan process, and how they will help keep you and your employees happier.

What Situations Would Motivate Employers to Seek Payroll Loans?

What would lead you to need a payroll loan in the first place? There are all sorts of events that are outside the usual boundaries of the operating budget. Any one of them could put the ability to cover payroll into jeopardy.

Storm damage is a good example. While insurance will cover most of the cost, there’s the remainder that has to come from somewhere. That somewhere is the emergency reserves that you keep on hand, plus some of the money that you earmarked to cover employee salaries, wages, taxes, and other essentials. While it’s a given that the damage must be repaired if the business is to continue operating, payroll must be met.

In this scenario, you would divert other cash assets to taking care of the damage. Payroll funding through Payro would ensure that all of your employees continue to receive their salaries and wages without fail. That means when the structural damage is repaired, you will have employees ready to work and take care of your clients.

What Situations Would Motivate Employers to Seek Payroll Loans?
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Preparing to Apply: Gathering Documents

Seeking financing, including payroll loans, does mean providing whatever information is required by the lender. It’s in your best interests to find out ahead of time what sort of documents are needed as part of the application process. With Payro, you know up front what sort of documents may be needed.

One thing that’s different about Payro is that you won’t necessarily need to provide a wide range of financial documents. What you will need to provide is six months worth of bank statements. If you have separate accounts for managing payroll and general operating expenses, then you will want to include statements for each of those accounts.

Don’t forget you will need to provide information that establishes you are the owner and proprietor of a legitimate pharmacy. That data is basic, easily confirmed, and will ensure that your application receives prompt attention.

It’s a good idea to keep those documents gathered in a central place while you wait for a response to the application. That makes it all the easier to respond to any queries about any of the data submitted. It will also help you to see at a glance if you need to submit another document that will provide an answer to the query.

How Long Will You Wait?
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How Long Will You Wait?

With Payro, applications for business payroll loans begin an immediate evaluation process. As part of the initial evaluation, an underwriter will be in touch to confirm the receipt of the application. At that time, there may be a request for additional financial documents. Since you took the time to gather those ahead of time, it won’t be difficult to comply with the request.

After any additional data is provided, settle back and wait for a response. Generally, Payro is known for providing decisions to applicants within one to two business days. That’s good news, since you won’t have to wonder about the financing for very long.

While you wait for a response, continue to review your plans for getting through whatever series of events led to the need for a loan. That may involve making sure everything is filed with the insurance company, repair crews are prepared to start as soon as you provide some sort of up-front payment, and any other details that need to be settled. Once you do hear from Payro that your loan application is approved, then you will know that funding payroll will not be an issue.

Receiving The Funding After Approval
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Receiving The Funding After Approval

Once you are notified of the approval, what happens then? Generally, Payro transfers the money to you the same business day. The nice thing is that even this process is streamlined to ensure there are no delays.

If you do have a separate bank account for payroll purposes, you can arrange for Payro to transfer the funds directly into the account. Once the receipt is confirmed, you can move forward with preparing the upcoming payroll. Many business owners find that this simple action goes a long way toward helping them feel confident about being able to get the business back on track.

Keep in mind that the amount you can borrow depends a great deal on what your bank statements reveal. It may be possible to borrow enough to cover several pay periods. If so, that will make it even easier to feel good about ensuring the business is fully restored, and your employees will be paid on time.

Repaying the Loan
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You chose to apply for a loan with Payro because the terms and conditions were so clear. It was also helpful that you feel confident in the ability to repay the loan balance within the required period of time. Knowing what your obligation happens to be makes arranging to remit payments in a timely manner all the easier.

There’s more than one way to repay the loan. One is to allow the loan to continue all the way to the due date. If you prefer that approach, ensure enough money to pay off the loan is in whatever account you’ve selected to make the loan payment. Payro will initiate a withdrawal on the agreed-upon date, and ensure the payment is credited. Assuming the withdrawal is successful, the obligation is fulfilled.

Make sure that you are aware of the date when the withdrawal will be initiated. The goal is to confirm that the account contains enough funds to take care of the transaction without overdrawing the balance. Doing so will allow you to avoid any penalties or charges that would result from a failed withdrawal attempt. Your diligence will also keep the door open with Payro, and provide you with the opportunity to fund a future payroll if the need should arise.

Here’s another fact about Payro loans that you need to know: there’s no penalty or fee if you decide to retire the loan early. At any time during the loan period, you have the ability to initiate a complete loan repayment and settle the debt. There is no need to wait until the date that the automated withdrawal arrives.

Needing Funding in the Future

There are plenty of reasons to repay your obligation to Payro on time. One of the more important ones is knowing you can receive funding in the future if necessary.

Responsibly managing the funding this time helps to build a positive relationship with Payro. In the event that you need to fund another payroll at a later date, the process will be quick, simple, and easy to understand, given your prior experience.

This provides you with a greater sense of control over the task of payroll management. Whether you turn to funding due to an anticipated event involving the cash flow, or if something unexpected puts the ability to pay your employees on time in jeopardy, you will know exactly where to go.

Remember that Payro is known for evaluating applications quickly, and making funds for approved clients available the same business day. This means that even if something occurs a few days before payday, there’s a good chance of having the funding needed in plenty of time.

Apply Today

There’s no reason why you have to endure sleepless nights wondering how you will pay the pharmacy staff. If some sort of event has led to a depletion of your available cash, turn to Payro and explore the options for funding payroll. You may find that a loan will be all it takes to take care of everything.

Morris Reichman


Morris Reichman is the founder and CEO of Payro Finance. Former Vice President at Infinity Capital Funding an alternative finance company, Morris possesses a versatile background in the finance industry. Having spent 7+ years working across global macro operations and start up corporate finance Morris's expertise is in business accounting, risk management and investment analysis. Morris founded Payro Finance to support business owners and ensure their business continuity.

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