The UK private medical sector plays a vital role in delivering high-quality healthcare services, ranging from specialist treatments to routine consultations. Managing cash flow can be challenging due to delayed insurance reimbursements and extended payment terms from corporate clients.
These financial pressures can hinder investment in technology, staff, and service improvements. Invoice finance offers a tailored solution, providing immediate access to cash tied up in outstanding invoices.
This flexible funding option enables healthcare providers to maintain smooth operations, invest in growth, and continue delivering exceptional care without financial disruption.
What is Healthcare Invoice Finance?
Healthcare Invoice Finance is a flexible funding solution designed to help healthcare providers unlock the cash tied up in outstanding invoices. Instead of waiting weeks or months for payments from insurers, corporate clients, or private patients, healthcare businesses can access a significant percentage of the invoice value upfront.
Once the client settles the invoice, the remaining balance, minus a small service fee, is released. This form of finance supports improved cash flow, allowing healthcare providers to cover essential expenses such as payroll, equipment investment, and operational costs, ensuring uninterrupted delivery of high-quality care.
Types of Finance for the Healthcare and Care Sector
Whether you are already running your own healthcare business in the care home or domiciliary sectors, or simply considering starting up, we can help you find the right type of funding option to help you build your business:
We can help you secure the following types of business finance for your healthcare company:
Invoice Factoring
Invoice Factoring for healthcare businesses is when you sell your invoices to a third party lender. It’s a form of invoice finance and will give your business an effective way to improve its cashflow position.
Healthcare accounts receivable factoring company provides the credit control service to recover payment of the unpaid invoice. Invoice factoring companies allow you to release cash from your unpaid invoices quicker than having to wait between 30 to 90 days – and sometimes up to 120 days – for your customers to pay you.
Invoice Discounting
Invoice discounting is a financial solution that allows a healthcare businesses to convert unpaid invoices into necessary funds. This type of financing enables companies to free-up their own cash flow in order to ensure that their core business needs are met, such as providing wages for staff or paying suppliers. It’s perfect for companies that are looking for short-term solutions because you’re only charged an interest rate on the funded amount. This means that once an invoice has been paid, it ceases to be included in the discounting agreement and all debt clears without any long-term commitments or liabilities.
You no longer have to wait up to 120 days to receive payment for your goods and services, and you remain in charge of your own credit control processes, meaning that you continue to chase late payments and therefore your customers are not made aware of our involvement.
How Healthcare Invoice Finance works
Healthcare Invoice Finance works by providing healthcare providers with immediate access to funds tied up in unpaid invoices. Once a service is delivered and an invoice is issued, rather than waiting for the client to settle the payment, the provider can submit the invoice to an invoice finance provider.
The finance provider then advances a significant percentage of the invoice value—typically up to 90%—within 24 to 48 hours. When the client pays the invoice in full, the remaining balance, minus a service fee, is released back to the provider. This arrangement helps maintain steady cash flow, supporting the financial stability of healthcare businesses.
The process typically involves the following steps:
- Submit invoices: Send your outstanding invoices to the finance provider.
- Receive advance funds: Access up to 90% of the invoice value within a short timeframe.
- Client payment: The client pays the invoice directly to the finance provider.
- Balance settlement: The finance provider deducts their fee and transfers the remaining balance to you.
This simple and efficient process allows healthcare providers to focus on delivering quality care without the financial strain of payment delays.
Domiciliary Healthcare Finance
The domiciliary care sector delivers essential support to individuals in their own homes, enabling them to maintain independence and dignity. Care providers often face cash flow challenges due to delayed payments from local authorities and private clients, despite ongoing obligations such as payroll, staff development, and operational costs.
Invoice finance offers a practical solution by providing immediate access to funds tied up in unpaid invoices. This improves liquidity, enabling care providers to meet financial commitments promptly, invest in workforce development, and maintain the high-quality service standards critical to delivering effective home care.
The Benefits
- Released cash in 24 hours after invoices are raised
- Receive up to 95% of the invoice amount
- Credit control can be fully managed or confidentially kept in-house
- Improves working capital cash flow for your business
- Negotiate better terms with your suppliers
- Bad Debt Protection (BDP) can be added to protect against non-payments
- Debenture taken on company and no personal guarantee
F.A.Q’s
Can Invoice Factoring help my care business
Yes Invoice Factoring can assist any healthcare business with cashflow funding. It will advance cash against your unpaid invoices.
Can you assist if we use a system such as CM 2000 Care System
Yes the CM 2000 System is more water tight than the traditional time sheets used by carers.
Do you fund all Domiciliary Care businesses?
We are happy to fund any business but we only fund contracted work e.g. Council and NHS contracts. We do not fund private service users.
Get a finance quotation for your Healthcare Business
If you are a business owner of a healthcare business and carry out regulated activities such as domiciliary care, and would like to know the benefits of using invoice finance for your company, simply make contact on 01246 233108 or complete an online enquiry and one of the healthcare support team will return your call.
Seasoned professional with a strong passion for the world of business finance. With over twenty years of dedicated experience in the field, my journey into the world of business finance began with a relentless curiosity for understanding the intricate workings of financial systems.