Canadian community pharmacies and central-fill facilities are under pressure to dispense faster, reduce errors, and protect margins—even as labour and compliance costs rise. Automation helps: vial-filling robots, pouch packagers for LTC, carousels, will-call systems, IV compounding hoods, and the software that knits it all together. The challenge is capital. Buying outright can drain working capital you need for inventory and payroll.
As both a financing partner and a seller of select commercial assets, Mehmi Financial Group structures leases and loans specifically for pharmacy workflows—milestone funding to your vendors, soft-cost bundling (install, interfaces, training), and options for refurbished units when appropriate. Decisions are typically fast when the file is packaged correctly. If you want a second set of eyes before you sign a vendor quote, feel free to contact our credit analysts.
Table of contents
- Why pharmacies choose leasing over cash purchases
- What automation assets private lenders will finance
- Lease structures (and how they affect cash flow)
- What private underwriters actually look for
- Terms, down payments, and security—typical ranges
- Startups, store conversions, and multi-site chains
- Refurbished/demo equipment & vendor switches
- Total project cost: the “invisible” line items to include
- Approval checklist (credit-analyst view)
- Case study: LTC pouch packaging rollout on a tight budget
- FAQs
- Next step
Why pharmacies choose leasing over cash purchases
- Preserve working capital. Keep cash for inventory turns, payroll, and delivery programs rather than tying it up in a robot.
- Match cost to revenue. Step-up schedules let you start with lower payments during installation and training, then move to full amortization once throughput improves.
- Stay current. FMV leases make upgrades easier as models evolve or you add locations.
- Cleaner budgeting. Predictable monthly expense vs. large upfront cheque; speak with your accountant about tax treatment.
Run quick scenarios with our calculator and review core options here: Financing & Leasing.
What pharmacy automation assets private lenders will finance
- Dispensing automation: Vial-filling robots, counting machines, will-call bag systems
- Adherence & LTC: Multi-dose pouch/blister packagers, vision verification, de-blistering
- Storage & throughput: Vertical carousels, smart cabinets, conveyor and sortation
- Sterile compounding & safety: Laminar flow hoods, biosafety cabinets, negative-pressure rooms (build-out often eligible)
- Software & IT: Workstations, label/printer suites, interfaces to Kroll/Fillware/Ubik, analytics dashboards
- Ancillaries: Label applicators, scales, fridges/freezers with data logging, UPS/power conditioning
Soft costs—delivery, installation, interfaces, training, validation/qualification—are commonly bundled so you’re not cash-starved mid-project.
Lease structures that fit pharmacy cash flow
| Structure | Best For | Cash-Flow Impact | End-of-Term |
|---|
| FMV (Operating) | Lower payments; plan to refresh every 4–6 years | Lowest monthly; flexible during tech upgrades | Return, renew, or buy at fair value |
| $10 / Fixed-Residual (Capital) | Long-life assets (carousels, cabinets) | Moderate monthly; straightforward path to ownership | Title transfers for nominal/fixed amount |
| Sale-Leaseback | Freeing cash from paid-off equipment | Immediate liquidity; predictable payments | Reacquire at residual buyout |
| Progress-Funding | Multi-stage installs, construction, or interfaces | Interest on drawn amounts only; converts at acceptance | Term begins after site acceptance testing |
Unsure which fits? Compare structures with the calculator and we’ll price them side-by-side.
What private underwriters actually look for (beyond credit score)
- Operational case. How does the device raise throughput, reduce errors, or unlock LTC contracts? Provide a simple utilization model (scripts/day before vs. after, labour hours saved, error reduction targets).
- Cash-flow coverage. 6–12 months of business bank statements; lenders prioritize stable deposits and room for the new payment.
- Vendor & support. Established vendors with install/service capability and available parts improve approval odds.
- Integration plan. EMR/PMS interface scope, go-live timeline, acceptance criteria, and training calendar.
- Exit value. Mainstream models with healthy secondary markets are easier to fund—especially on FMV structures.
If ramp-up will be lumpy, consider a small revolving buffer via Line of Credit & Working Capital. For AR timing issues (e.g., third-party payors or LTC invoicing), Invoice Factoring can smooth cash receipts.
Terms, down payments, and security (typical ranges)
- Term: 24–72 months; larger bundles may stretch to 84 months
- Down payment: 0–15% depending on file strength; first/last in advance is common
- Payments: Step-up/seasonal options during onboarding or conversion windows
- Security: PPSA on financed assets; personal guarantees for private corporations
- Covenants: Insurance, maintenance, and consent for additional senior liens
- Refinance window: After 12–18 clean payments, we often revisit pricing via Refinancing & Sale-Leaseback
Startups, store conversions, and multi-site chains
- Startups/new owners. Strong guarantors, realistic script forecasts, and phased equipment lists help. Stage the wish-list into two draws if needed.
- Conversions/relocations. Use progress-funding to align vendor payments with construction and interface milestones.
- Chains & central fill. Pre-approved SKUs and standardized milestone schedules speed rollouts; we normalize “cost per store per month” so finance and ops can plan together.
Core path: equipment via Financing & Leasing with an optional LOC overlay for inventory via Working Capital.
Refurbished/demo equipment & vendor switches
Refurb/demo units can cut cost 20–40% when quality and support are verified. Lenders typically ask for:
- Refurb certificate and warranty terms
- Compliance/serial documentation and software license transferability
- Inspection or appraisal on higher tickets
- Clear installation and acceptance plan
If you change suppliers mid-process, we keep your approval intact and re-issue milestone schedules to the new vendor. When our own inventory fits your spec, we can sell and finance the package directly—one contract, one timeline.
Total project cost: don’t miss the “invisible” items
- Electrical/data drops, cabinetry, benches, counters
- Software interfaces, user licenses, analytics modules
- Validation, SOP updates, staff training time
- Delivery, rigging, and disposal of legacy units
- First-year service or multi-year coverage
- Temperature-monitoring/fridge upgrades if required by workflow
Where eligible, we’ll roll these into the same facility so you preserve cash for inventory turns and staffing.
Approval checklist (credit-analyst view)
- Application, IDs, void cheque
- Corporate docs (registration, ownership)
- Financials: Last filed year, YTD interims, 6–12 months bank statements
- Guarantor snapshot (bureau authorization; NOA/T1 summary if requested)
- Vendor quote/SOW with install timeline and interface scope
- Insurance binder naming lender as loss payee
- Go-live plan with acceptance criteria and training calendar
Send what you have—we’ll stage the rest so underwriting doesn’t stall.
Case study: LTC pouch packaging rollout on a tight budget (Ontario)
Situation. Independent pharmacy winning a new LTC contract needed a pouch packager + vision verification and cabinet upgrades. All-in project: $238,000 including interfaces and training. Cash was committed to inventory ahead of go-live.
Structure. 72-month FMV lease with a 3-month step-up during onboarding; progress-funding to vendor at deposit, delivery, and acceptance. Small LOC overlay approved in parallel for initial inventory ramp.
Outcome. Approved and staged within weeks. Contract launched on time; labour hours per 1,000 doses dropped materially. After 15 on-time payments, we refinanced to trim the rate—monthly cost decreased ~8%, freeing budget for a part-time compliance tech.
Frequently asked questions
Can I include software interfaces and training in the same lease?
Often yes. Private lenders frequently allow soft-cost bundling so projects don’t stall mid-install. Use our calculator for quick estimates.
What credit score do I need?
Many prefer 650+, but strong cash flow, credible forecasts, and guarantor strength can offset thinner credit. We place A–D credit across 30+ Canadian lenders.
How fast can vendors be paid?
With a complete package, approvals are typically quick and vendors are paid on delivery/acceptance through milestone funding.
Is refurbished automation financeable?
Yes—with documented refurbishment, warranty, and parts support. Inspections are common on larger tickets.
Can we lower payments later?
Often. After 12–18 months of clean performance, we consider refinancing to reduce rate or extend term.
Ready to compare options?
If you’re weighing FMV vs. $10 buyout—or deciding which line items to phase first—feel free to contact our credit analysts for tailored guidance. You can estimate payments now with our calculator, explore structures on Financing & Leasing, or start a conversation here: Contact Us.
Helpful links:
Financing & Leasing • Refinancing & Sale-Leaseback • Invoice Factoring • Line of Credit & Working Capital • Calculator • Contact Us
Written from the lens of a Canadian credit analyst. Mehmi Financial Group provides equipment financing, refinancing, invoice factoring, and working-capital solutions across Canada—and can sell and finance select commercial assets directly when inventory fits your needs.
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