How Pharmaceutical and Healthcare Companies are Using Business Term Loans

Healthcare professionals checking their company account balances through online banking

Running a successful pharmaceutical or healthcare business requires proactive strategies to seize financial opportunities, especially during critical periods like flu and allergy seasons. These periods drive increased demand for medications and treatments, necessitating careful financial planning to meet patient needs effectively. However, securing the funds to meet this demand and support expansion can be challenging without cash on hand.

That's where business term loans1 come into play, standing out as a reliable financing option. They offer minimal impact on expense management and provide essential support for businesses looking to manage seasonal fluctuations effectively while seizing growth opportunities.

What is a Business Term Loan?

Business term loans offer a great opportunity to boost your business's chances of growth and expansion by providing crucial capital and mitigating financial risk. But what are these loans and how do they work? Let’s break it down:

A business term loan1 is a one-time, upfront payment that is borrowed from a lender, like a bank or credit union. This loan is repaid with its accumulated interest over a pre-arranged schedule known as a “term.” Term loans commonly span from 3 to 10 years, and they have fixed interest rates that remain consistent over its lifetime.

A business owner will typically apply for a term loan if they want to fund a one-time project or facilitate long-term business growth. This may include expansions, real estate purchases, debt refinancing, and other initiatives.

How Can Pharmaceutical and Healthcare Companies Use Business Term Loans?

When leveraging financial opportunities, pharmaceutical and healthcare companies may utilize business term loans. This resource can help them address the increased demand for medications or treatments during flu and allergy seasons in several ways:

1. Expansion of Production Facilities:

Pharmaceutical and healthcare companies may use term loans to expand their production facilities so they can meet heightened demand. This may include broadening production lines, making renovations, or even constructing new facilities. By securing funding through a business term loan, these companies can scale up operations, increase production capacity, and ensure a consistent supply of medications or treatments is available to meet patient needs.

2. Investing in New Equipment:

Pharmaceutical and healthcare companies may alternatively use a business term loan to upgrade their equipment, improving their manufacturing capabilities. This can include purchasing new machinery or adopting advanced technologies to streamline production processes and increase overall efficiency. By making these investments, businesses can reduce production costs, improve productivity, and better meet the increased demand for medications or treatments during flu and allergy seasons.

3. Raw Material Procurement:

In addition, companies may need to obtain larger quantities of raw materials or active pharmaceutical ingredients (APIs) to ramp up production. A business term loan can provide the necessary capital to purchase these materials in bulk, ensuring a consistent supply of medications or treatments during peak seasons.

4. Research and Development:

Pharmaceutical companies may use term loans to fund research and development efforts for creating new medications (or improving existing ones) so they can better address the needs of patients during this time. These efforts may involve conducting clinical trials, investing in innovative drug delivery technologies, or exploring new treatment modalities.

5. Marketing and Promotion:

Healthcare companies may allocate funds from business term loans to use for marketing and promotional activities. This helps businesses raise awareness about their medications or treatments so they can capture a larger share of the market during times of seasonal illness. Activities could include advertising campaigns, sponsoring educational events, or offering promotional discounts to healthcare providers.

6. Inventory Management:

With the help of a loan, pharmaceutical and healthcare companies can invest in extra inventory to maintain a steady supply of medications or treatments. This may involve stocking up on finished products, packaging materials, or expanding storage facilities to accommodate the higher inventory levels required during peak seasons. Through proactive inventory management, these companies can meet the needs of patients and healthcare providers while streamlining operations for better performance.

Business Term Loans at Academy Bank

In the end, business term loans1 provide a valuable resource for companies to fund expansion and become more profitable. They offer much-needed financial backing for scaling operations, investing in research and development, and effectively marketing products and treatments during flu and allergy seasons.

When you partner with Academy Bank, your business goals become even more achievable. By collaborating with a business banking specialist, you can find a term loan tailored to your business needs, unlocking opportunities for growth and success.

Advantages of business term loans from Academy Bank:

  • Lower interest rates
  • Longer repayment terms
  • Opportunity to build business credit

Ready to take the next step? Visit a local branch, call 866-277-4539, or email our Business Bankers to explore how our business term loans can propel your business forward.

Interested in exploring another option? Discover how a business line of credit can be a great alternative, especially during seasons of illness.



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1 All loans and lines of credit are subject to credit approval and require automatic payment deduction from an Academy Bank business checking account. Origination and annual fees may apply.