Best Business Loans

Can I finance cash flow against NHS, insurer or private patient receivables?

Short answer and overview

Yes — many UK healthcare businesses can finance cash flow against NHS, medical insurer, or private patient receivables through specialist invoice finance and receivables-backed facilities. This is commonly known as healthcare invoice finance, medical factoring, or receivables financing, and it can unlock a percentage of your unpaid invoices within days. Best Business Loans does not lend, but we can introduce you to lenders and brokers who specialise in this area.

These facilities are used by medical staffing agencies, outpatient clinics, diagnostics, dental groups, care providers, allied health professionals, and suppliers servicing NHS Trusts or private hospitals. They are designed to bridge payment delays, smooth working capital, and support payroll, rent, and supplier payments. Funding is typically secured against your eligible debtor book rather than property.

Advances are usually between 70% and 90% of approved invoices, with the balance (minus fees) paid when the customer settles. For NHS contracts and major UK insurers, verification and assignment processes are well established, which can help lenders assess and fund quickly. For private self-pay patients, lenders may apply tighter criteria because invoice verification and dilution risk can be more complex.

What exactly is healthcare receivables finance?

It is a revolving facility that releases cash tied up in outstanding invoices to NHS bodies, medical insurers, or private patients. You raise an invoice, submit it via the agreed portals or processes, and the funder advances a percentage shortly after verification. When the invoice is paid, the remainder is released minus agreed charges.

Who typically qualifies?

Common users include NHS agency staffing providers, physiotherapy and diagnostics clinics, dental laboratories, medical consumables suppliers, private hospitals, and care operators billing local authorities or CCG/ICB successors. Eligibility depends on contract quality, invoicing processes, and debtor creditworthiness. Lenders favour established businesses with traceable billing and low dispute rates.

Important

Information on this page is for UK businesses only and is not financial advice. Eligibility, fees, and terms depend on your circumstances and the provider’s criteria.

How it works for NHS, insurer and private patient receivables

The funder reviews your debtor ledger, contracts, and billing flows, then sets an agreed advance rate and concentration limits. Once on-boarded, you submit invoices, the funder verifies them, and advances are made to your account, usually within 24–72 hours after verification. A service fee and a discount rate (interest) are charged on funds used until the invoices are paid.

For NHS receivables, lenders often verify through recognised processes such as purchase orders, framework call-offs, approved timesheets, and payment history with NHS Shared Business Services or Trust finance teams. For insurer receivables, validation usually involves EDI or portal remittances from major UK private medical insurers. Private patient receivables may require evidence of pre-authorisation, deposits, or payment plans.

Facilities can be structured as factoring (the funder may manage collections) or confidential invoice discounting (you retain collections under a trust account arrangement). Many healthcare operators prefer confidential structures to preserve patient and client relationships, subject to lender comfort and verification protocols.

Typical features you might see

Advance rate: commonly 70%–90% of eligible receivables.
Recourse vs non-recourse: some lenders offer bad-debt protection on approved debtors; terms vary.
Concentration limits: caps on exposure to a single Trust, insurer, or patient cohort.
Eligibility rules: aged debt caps (for example, invoices over 90 or 120 days may be excluded).
Covenants: information undertakings and basic financial reporting.

Cost components to understand

Service fee: a percentage of invoice value, often tiered by turnover.
Discount rate: a variable interest margin on drawn funds, quoted over base rate.
Other fees: arrangement, audit, trust account, or minimum usage — varies by provider.

At-a-glance comparison

Receivable Type	Typical Advance	Verification Ease	Key Risks	Recourse Options
NHS Trusts/ICBs	80%–90%	High (formal POs, frameworks)	Timesheet disputes, PO mismatch	Often recourse; some non-recourse elements
Private Medical Insurers	75%–90%	Medium–High (portal remittances)	Tariff disputes, coding queries	Usually recourse; selective non-recourse possible
Private Patients	60%–80%	Medium (deposit/proof needed)	No-shows, self-pay defaults	Generally recourse; higher exclusions

Illustrative example

A healthcare staffing agency invoices £200,000 to two NHS Trusts on a framework. The agreed advance is 85%, so £170,000 is drawn within two days of verification. On payment at day 45, the remaining £30,000 is released minus fees and discount charges.

Eligibility, documents and common conditions

Lenders will assess your business stability, cash flow, and debtor quality rather than property assets. They prefer established companies with clear invoicing procedures, low credit note rates, and verifiable contracts. Some providers have minimum turnover thresholds, often from £250k–£500k annually and upwards.

Healthcare-specific controls are vital, such as CQC registration where required, up-to-date payroll and compliance for staffing agencies, and accurate clinical coding or tariff management for providers billing insurers. For NHS billing, purchase orders, timesheets, and framework details must reconcile cleanly. For private patient work, deposits, pre-authorisations, and consent forms help de-risk invoices.

Expect to provide an aged debtor report, sample invoices and remittances, contracts or framework awards, bank statements, filed accounts or management information, and details of any existing debentures. If you are moving from another facility, a refinancing letter and payout figure will be needed. Directors may be asked for ID, address verification, and in some cases personal guarantees.

Operational points lenders often examine

Approval workflows: timesheets signed-off, PO compliance, and coding checks.
Dispute management: credit notes as a percentage of sales and resolution times.
Debtor concentrations: reliance on one or two Trusts or insurers.
Aged debt: how much is over 60/90 days and reasons for delays.
Systems: invoicing platforms, NHS portals, and reconciliation processes.

Red flags that can reduce eligibility

High dispute rates or unsubstantiated adjustments.
Invoices lacking POs, timesheets, or insurer pre-authorisations.
Significant private self-pay balances without deposits or guarantees.
Historic HMRC arrears without a Time to Pay arrangement.

Sector notes

Staffing and locum agencies funding against approved NHS timesheets are common applicants. Outpatient and diagnostics clinics billing insurers benefit from consistent remittance advice for verification. Care providers invoicing local authorities or ICBs may be eligible subject to contract evidence and dispute rates.

Benefits, drawbacks and alternatives

Receivables finance can stabilise working capital, supporting payroll, consumables, and rent while you grow. Funding tends to scale with turnover, so you are not capped at a fixed loan limit if sales rise. Collections data and ledger visibility can also strengthen your cash flow planning.

Costs and controls are the trade-off, and you should budget for service fees, discount rates, and any minimum charges. Certain facilities require notice of assignment and trust accounts, which require administrative discipline. Concentration limits and eligibility rules mean not all invoices will be fundable at all times.

Alternatives include revolving credit facilities, unsecured term loans, asset finance for equipment, VAT loans, and revenue-based finance for private self-pay card income. If you deliver estates or maintenance projects in clinical settings, you may also explore sector-specific options such as building services finance for contract-based cash flow. The best fit depends on your margins, debtor mix, and growth plans.

Top benefits at a glance

Faster access to cash tied up in invoices.
Funding that grows with your sales pipeline.
Potentially lower reliance on overdrafts.
Option to keep collections in-house (confidential structures).

Potential drawbacks

Fees and interest that must be weighed against margin.
Operational requirements around verification and reporting.
Possible personal guarantees and debentures.
Not all invoices may be eligible, especially older or disputed items.

Who might prefer an alternative?

Practices with small, highly predictable ledgers may favour a simple term loan. Capital-intensive upgrades suit asset finance. Businesses with significant card takings from private patients might evaluate revenue-based finance or merchant facilities.

How to get started through Best Business Loans

We help you find providers who understand NHS, insurer, and private patient billing — and who are actively lending in your niche. Complete a Quick Quote to outline your business, monthly billing, and debtor mix. Our AI matching process introduces you to suitable lenders or brokers who can discuss indicative terms without obligation.

Typical timelines run from indicative terms to initial drawdown in one to three weeks, depending on complexity, audits, and consents. If you have clean ledgers, clear contracts, and reconciled remittances, the journey is usually faster. If you are refinancing an existing facility, allow time for payout coordination.

Submitting your enquiry is free, secure, and does not affect your credit score with most providers at the initial stage. We are transparent that we do not guarantee the lowest rate, and acceptance is not assured. Our role is to connect you with relevant, reputable finance professionals so you can compare and decide.

What to include in your Quick Quote

Monthly sales and average debtor days.
Breakdown of NHS vs insurer vs private patient receivables.
Any frameworks, approvals, or insurer agreements.
Existing finance arrangements and target facility size.

FAQs

Is financing against NHS receivables common in the UK?

Yes, it is a well-established market with providers experienced in NHS frameworks, timesheets, and verification.

Do I have to inform my customers?

Factoring usually requires notice of assignment; confidential discounting may avoid overt notification, subject to lender requirements.

What advance can I expect?

Typical ranges are 70%–90% for NHS and insurers, and 60%–80% for private self-pay, depending on risk and verification.

Will I need a personal guarantee?

Many facilities include director guarantees, though strength of business and security can influence requirements.

Can I include very old invoices?

Usually not; most lenders cap eligibility around 90–120 days past invoice date, subject to terms.

Key takeaways

You can finance cash flow against NHS, insurer, and private patient receivables via specialist invoice finance.
Advances often range from 70%–90% on eligible invoices, with verification and concentration rules applied.
It is a flexible way to fund payroll and operations, but costs and controls must suit your margins.
Best Business Loans can introduce you to lenders and brokers who understand UK healthcare billing.

Next step

Ready to explore options tailored to your ledger and sector? Submit a Quick Quote today for an eligibility check and introductions to suitable providers.

Compliance and transparency

Best Business Loans is an independent introducer using AI to help UK businesses connect with relevant lenders and brokers. We do not offer loans or provide regulated financial advice, and we do not charge you for submitting an enquiry.

All finance is subject to status, affordability checks, and provider criteria. Security and personal guarantees may be required, and rates and fees vary.

Financial promotions must be fair, clear, and not misleading. Please consider your obligations under UK law and seek professional advice where appropriate.