Do you offer invoice finance for NHS or insurer payments?
Short answer: we can match you with providers that fund NHS and insurer invoices
Yes — while Best Business Loans doesn’t lend or advance funds itself, we can introduce established UK companies to specialist invoice finance providers who fund verified invoices owed by the NHS and major insurers. This includes factoring and invoice discounting for suppliers to NHS Trusts, NHS Shared Business Services (NHS SBS), Integrated Care Boards, and private medical insurers such as Bupa, AXA Health, and Aviva. Advance rates on these low‑risk debtors are often higher than standard trade debt, subject to provider due diligence and your business profile.
Our role is to help you navigate the market and connect you with reputable lenders or brokers who actively support healthcare and insurance receivables. You can request a Quick Quote or an Eligibility check in minutes, with no obligation to proceed. Pricing, terms, and approval remain the responsibility of the provider we introduce you to, and are assessed on a case‑by‑case basis.
Typical users include medical consumable suppliers, staffing agencies, equipment and maintenance contractors, IT and estates providers, clinical service providers, and bodyshops or clinics billing motor or medical insurers. If your invoices are to recognised NHS entities or well‑rated insurers, funding can often be arranged faster due to the perceived quality of the debtor. However, finance is never guaranteed, and approval depends on your specific circumstances and the lender’s criteria.
To get started, complete our Quick Quote form and tell us who your key debtors are, your monthly invoice volumes, and the funding you need. Our AI matching then identifies relevant providers with experience in NHS and insurer‑backed invoices. You’ll retain full control over your decision and can compare options before proceeding.
Please note: enquiries are for business purposes only and we support established companies rather than start‑ups or sole traders. We aim to keep all information fair, clear, and not misleading, and we encourage you to review full terms before committing to any agreement.
How NHS and insurer invoice finance works
Invoice finance releases cash tied up in unpaid invoices by advancing a percentage of the invoice value shortly after it’s raised. With NHS and insurer invoices, lenders typically look for clear evidence of delivery, clean remittance patterns, and credible payors. Because NHS and major insurers are generally low risk, funding lines can be competitive compared with mixed ledgers.
What is being funded?
Providers fund your accounts receivable — the invoices you’ve issued for goods or services already delivered to the NHS or insurers. Funds are usually advanced within 24–72 hours after verification, with the balance paid less fees when the debtor settles. This can smooth cash flow, cover payroll, buy stock, or help you scale confidently.
Common structures
Factoring vs. invoice discounting
Factoring includes sales ledger support and collections in the lender’s name, which can suit teams that want outsourced credit control. Invoice discounting is typically confidential; you retain credit control and customer relationships while accessing funding. The choice depends on your internal processes and lender eligibility.
Selective vs. whole‑ledger
Selective facilities let you fund specific NHS or insurer invoices or debtors, ideal if you want to ring‑fence healthcare or insurer receivables. Whole‑ledger facilities fund a broader book and may reduce concentration risk but require more comprehensive reporting. Your trading profile, debtor mix, and objectives will inform the best approach.
Recourse vs. non‑recourse
Recourse facilities mean you ultimately retain the risk of non‑payment beyond agreed periods. Non‑recourse can include bad‑debt protection for approved debtors, which may be attractive for compliance or risk management. Cover can be subject to credit limits, exclusions, and claim conditions, so read terms carefully.
Why healthcare and insurer receivables are attractive
NHS and prime insurer debts are often viewed as lower risk due to strong covenant strength and more predictable payment behaviours. As a result, providers may offer higher advance rates — commonly 80–95% for NHS invoices and 70–90% for insurer invoices, subject to assessment. That can translate into faster growth without relying on unsecured overdrafts.
The set‑up often includes a trust account and a formal notice of assignment so the NHS Trust or insurer pays into the correct account. This is standard practice in invoice finance and does not generally disrupt operational relationships when managed professionally. Your provider will guide you through the correct assignment and remittance steps.
Once live, you upload invoices and supporting evidence via a portal, receive advances, and reconcile when payments arrive. Facilities scale with your turnover, so as you win more NHS frameworks or insurer volume, your available funding can increase.
Eligibility, documents, and sectors we can support
We focus on established UK trading businesses that supply or provide services to NHS entities and reputable insurers. If your company has a track record, verifiable invoicing, and reasonable debtor dilution, we may be able to introduce suitable providers. Enquiries must be for business purposes and not consumer credit.
Typical businesses using NHS or insurer invoice finance
Common users include medical and surgical suppliers, dental labs, community care providers, clinical staffing and locum agencies, estates and facilities contractors, IT and digital health vendors, and maintenance professionals. Motor repair bodyshops and accident management firms dealing with insurer payments also commonly use receivables funding. If you operate in building maintenance for NHS estates, you may also find our internal guidance on building services loans helpful for complementary finance options.
Invoice and debtor criteria
Lenders look for clean, undisputed invoices with clear purchase orders or contracts, proof of delivery, and acceptance where relevant. For NHS work, using NHS SBS, PEPPOL e‑invoicing, or defined Trust portals aids verification and may speed up funding. For insurers, clear remittance advice, approved estimates, and validated claims workflows help providers price risk accurately.
Core information you’ll likely be asked for
- Aged debtor and creditor lists, plus recent sales ledger reports.
- Sample invoices, POs, delivery notes, timesheets, or job sign‑offs.
- 6–12 months’ bank statements and last year’s accounts or management accounts.
- Details of NHS Trusts, ICBs, NHS SBS, or insurer counterparties with typical terms.
- Existing finance agreements and any debtor concentration exposures.
NHS process notes
Providers may ask for Trust‑by‑Trust payment performance and a summary of frameworks or contract awards. Being set up correctly with NHS SBS or the relevant Trust finance team will be important. Clear invoicing processes and prompt query resolution strengthen your case.
Insurer process notes
Evidence of approved work authorisations, repair validations, clinical coding or tariff approvals, and electronic remittance advice is valued. Providers often set debtor limits for each insurer and may require confirmation of settlement timelines. A stable pattern of payments helps unlock higher advance rates.
Costs, limits, and risks to consider (clear, fair, and not misleading)
Invoice finance pricing varies and depends on your turnover, debtor quality, sector, and facility structure. Expect a service fee (often a percentage of funded turnover) plus a discount rate applied to outstanding advances. For strong NHS and leading insurer debtors, margins can be competitive, but quotes are always bespoke.
Typical pricing components
- Service fee: commonly 0.25%–3.0% of invoiced turnover funded, depending on complexity and support level.
- Discount rate: a margin over a benchmark rate (e.g., Bank of England Base Rate or SONIA) typically in the low‑to‑mid single digits.
- Set‑up and audit fees: one‑off onboarding and periodic review fees may apply.
These ranges are indicative only and not an offer. The actual terms, costs, and eligibility are set solely by the provider you engage.
Advance rates and limits
For NHS invoices, advances can reach 80–95% with strong verification and low disputes. For insurer invoices, 70–90% is common for well‑rated insurers and established payment flows. Concentration limits, funding caps, and debtor approval lists may apply.
Key risks and obligations
- Recourse risk: you may need to repay advances on invoices that remain unpaid beyond agreed periods.
- Notice and assignment: debtors are often notified and asked to pay into a trust account.
- Covenants and reporting: timely reporting and ledger quality standards are typically required.
- Contract length and exit fees: minimum terms and notice periods can apply; understand termination clauses.
- Dilution risk: credit notes, disputes, and chargebacks can reduce availability and trigger adjustments.
We encourage you to compare offers, read all terms, and obtain independent advice where needed. Our introductions are free to request, and you decide if you wish to proceed.
Getting started: quick steps, timelines, and how we help
Our goal is to make it faster and simpler to find credible providers that understand NHS and insurer receivables. We use AI‑driven matching plus human checks to connect you with lenders or brokers aligned to your needs. There’s no obligation to proceed after an introduction.
Four simple steps
- Complete a Quick Quote: share basic details about your business, debtors, and funding goals.
- AI matching: our system compares your profile with active NHS and insurer‑focused providers.
- Introductions: we connect you with one or more suitable lenders or brokers for a deeper look.
- Choose and proceed: compare terms, ask questions, and proceed only if it suits your cash flow.
Typical timelines
In straightforward cases with clean NHS or insurer ledgers, initial terms can be issued quickly once information is supplied. Full onboarding commonly completes in 1–3 weeks, depending on complexity and your responsiveness. Spot or selective facilities can sometimes go faster.
What we do — and don’t do
We do not provide finance ourselves, give regulated advice, or guarantee acceptance or rates. We act as an independent introducer, helping you find relevant invoice finance providers for your circumstances. We prioritise clear, fair, and not misleading information so you can make informed decisions.
If you also need complementary working capital, asset or vehicle funding, or cash flow loans, we can signpost options. For contractors servicing NHS estates, see our guidance on building services finance as part of a broader funding strategy. Always consider affordability and the impact of fees and covenants on your operations.
Ready to explore your options? Submit your Quick Quote now for a free Eligibility check and potential introductions to suitable providers. It’s fast, secure, and you’ll remain in full control throughout.
Answers to common questions
Can I fund NHS purchase orders before invoicing?
Classic invoice finance usually requires an invoice for delivered goods or services. Some providers offer purchase order or contract finance, subject to controls and supplier risk. If PO funding is essential, tell us in your Quick Quote and we’ll factor this into your matches.
Do you support sole traders or start‑ups?
We primarily support established limited companies and LLPs with trading history. We currently do not support start‑ups or sole traders. If your business has recently won an NHS or insurer contract but is newly formed, we’ll let you know if any providers in our network may still review it.
Will my NHS Trust or insurer be notified?
With factoring, notice of assignment and a dedicated trust account are standard. Confidential discounting aims to minimise visibility while still directing funds appropriately. Your provider will explain the exact notification process and any debtor communications.
What advance rates can I expect?
Indicatively, NHS 80–95% and insurers 70–90%, subject to assessment, concentrations, and exclusions. Higher rates usually require strong verification and low dispute history. Exact terms are bespoke and set by the lender.
Is this regulated by the FCA?
Commercial invoice finance for limited companies is generally not regulated like consumer credit. We aim to follow the spirit of FCA principles for clear, fair, and not misleading information. Always read provider terms, and seek independent advice if you are unsure.
Key takeaways
- We can introduce you to lenders that fund verified NHS and insurer invoices to improve cash flow.
- Options include factoring, invoice discounting, and selective facilities with competitive advance rates.
- Eligibility depends on your trading profile, debtor quality, and documentation.
- Costs are bespoke; compare quotes, understand covenants, and assess affordability.
- Submit a Quick Quote for a free, no‑obligation Eligibility check and introductions.
Important information and fairness notice: Best Business Loans is an independent introducer. We do not provide finance or give regulated financial advice, and we do not guarantee funding or the lowest rates. Enquiries are strictly for business purposes; terms, fees, and eligibility are set by the provider you choose. Always consider affordability, read full agreements carefully, and seek independent advice where appropriate. Information on this page is general guidance only and may change without notice.
Updated: October 2025. Useful resources: British Business Bank: Invoice finance; NHS Shared Business Services.