The challenge: A pharmacy owner operating two community pharmacies across metropolitan Perth, WA approached Allfin to review their banking arrangements. Their existing facilities had been with the same lender long term, and interest rates were significantly above current market levels. With monthly principal repayments of around $28,000, the client wanted to reduce interest costs while improving the overall structure of their facilities and ensuring there was flexibility to support future business growth.
Allfin approach: The Allfin team ran a full market tender across all major lenders to create competitive tension and uncover the best possible pricing and structure. Using our expertise in pharmacy finance and long standing relationships with lenders, we were able to:
- Benchmark the client’s existing rates against current market terms.
- Negotiate sharper pricing with lenders who understood the strength of the pharmacy businesses.
- Restructure the facilities to Principal and Interest, improving cash flow management and allowing capacity for future acquisitions.
Outcome: Following the tender and negotiations, the client was able to secure significantly improved lending terms. While the incumbent lender offered a modest 0.25% rate reduction, an alternative lender provided a 0.80% lower rate overall with no loan service fees, delivering a much more competitive outcome. The facilities were also restructured to Principal and Interest, which improved cash flow management and provided greater flexibility for future acquisitions and/or business growth.
Overall, these changes resulted in more than $25,000 in annual interest savings and a total cash flow benefit of around $250,000 over three years.
Client benefit: Beyond the immediate cost savings, the client gained confidence that their lending structure is now more efficient, flexible, and well positioned for long term growth, supporting future business opportunities and expansion plans.
“The service from the Allfin team was outstanding from start to finish. They took the time to really understand our business and handled the entire process professionally and efficiently. Their knowledge of finance and their relationships with the banks made a real difference to the outcome. The interest savings alone were significant, but just as valuable was the confidence that our finance structure is now set up properly for the future. We couldn’t recommend the Allfin team highly enough.” ~ Mal, Pharmacist, WA