What interest rates and fees should healthcare businesses expect?

Q: How are invoice finance costs calculated for NHS or insurer invoicing?

You typically pay a service fee (often 0.5%–3.0% of invoice value) plus a discount charge on funds drawn until payment. The discount margin is often Base Rate plus a margin, commonly +2.5% to +6.5%. Pricing may be keener for high-quality debtors and consistent collections.

The quick answer: typical rates and what drives them

UK healthcare businesses should expect commercial funding costs to vary widely by product type, risk profile, and security offered. As a broad guide, unsecured term loans for established providers often price from roughly 6%–24% APR, while asset and equipment finance for medical kit may sit around 6%–18% APR equivalent. Invoice finance typically combines a service fee of 0.5%–3.0% of invoice value with a discount margin often c. Base Rate + 2.5% to +6.5% per annum.

Short-term cashflow facilities and revenue-based advances tend to be more expensive, with factor rates of 1.10–1.50 (meaning you repay £1.10–£1.50 for every £1 borrowed), and effective APRs can be materially higher. Lines of credit and overdraft-style facilities are usually variable, commonly priced at Base Rate plus a margin, with arrangement and non-utilisation fees also possible. Pricing shifts with the Bank of England Base Rate, sector conditions, and your individual business performance.

Important: All figures here are indicative, not offers. Actual pricing depends on lender assessment, credit status, trading history, security, and market conditions at the time you apply. We do not offer loans directly; Best Business Loans introduces you to suitable providers through our AI-powered matching process.

What lenders consider first

Lenders look at time trading, profitability, leverage, and cash flow resilience, especially in health and care settings. They will weigh contract quality (NHS, commissioners, private insurers), CQC ratings for regulated providers, and stability of patient or resident occupancy. Strong, predictable cash flows and tangible security generally reduce the rate you pay.

Fast snapshot of typical pricing ranges

Unsecured term loans: ~6%–24% APR, 1–6 years.
Secured term loans (non-property security): ~5%–14% APR, up to 7 years.
Asset/equipment finance: ~6%–18% APR equivalent, 2–7 years.
Invoice finance: service fee ~0.5%–3.0% + discount margin often Base + 2.5%–6.5% p.a.
Revolving credit/overdraft-style: variable, often Base + 3%–12% + fees.
Revenue-based or card takings advances: factor 1.10–1.50 (total repayable £1.10–£1.50 per £1).
VAT and tax funding: ~6%–15% APR equivalent, 3–12 months.

Representative repayment illustration

As a simple guide, every £10,000 borrowed over five years could cost roughly £190–£235 per month at ~6%–14% APR. The total payable changes with term, fees, and whether rates are fixed or variable. Always review the full APR or total amount payable in your personalised quote.

Fees healthcare firms commonly encounter

Commercial finance quotes typically include interest plus fees. Understanding these line items helps you compare the true cost and avoid surprises.

Arrangement or facility fees are common for term loans and revolving credit, typically 1%–6% of the amount or a fixed sum. Some facilities also include annual renewal fees or non-utilisation fees if you do not draw the full limit.

For secured borrowing, lenders may charge valuation and legal fees where security needs verifying. Document fees, direct debit setup fees, and early settlement charges can also apply, depending on product and provider.

Invoice finance and asset finance fee structures

Invoice finance pricing is made up of two elements: a service fee (to run the facility) and a discount charge on advanced funds. Service fees often range from 0.5%–3.0% of invoice values, with minimum monthly fees sometimes set.

The discount charge is usually a variable rate (e.g., Base + margin), applied to funds outstanding until your debtor pays. Facilities may also include audit fees, trust account fees, or export add-ons for international billing.

In asset and equipment finance, you may see doc fees, option-to-purchase fees (for HP), or end-of-lease fees (for leases). These are usually modest but should be factored into your comparison.

Broker and introducer fees

Some brokers charge a success fee to the customer; others are compensated by the lender.
Best Business Loans is an independent introducer; submitting a Quick Quote on our site is free and without obligation.
You will see any provider or broker fees in your personalised documents before you commit.

Early repayment and exit costs

Term loans can include early settlement fees, and revolving credit can carry exit fees if you close the facility early. Lease agreements may charge for early termination or excess use.

Ask for a clear statement of early repayment terms, including how interest is rebated and any fixed fee components. “Clear, fair and not misleading” information helps you make an informed decision, in line with FCA and ASA principles.

What makes healthcare pricing different?

Healthcare and care sectors have unique risk drivers that influence cost. Lenders lean into clinical governance, compliance, and payment reliability when pricing.

Regulated providers with good CQC ratings and clean inspection histories often see stronger lender appetite. Longstanding NHS or commissioner contracts can also support sharper pricing due to perceived stability.

Private-pay exposure adds margin potential, but lenders will assess payer mix, average treatment values, and seasonality. For care homes and domiciliary care, occupancy rates, fee structures, and staff retention are critical to risk assessment.

Security and quantum of funding

If you can offer robust security (e.g., medical equipment, vehicles, or other business assets), lenders may price lower than on a purely unsecured basis. Larger loan sizes can attract tiered fees or deeper pricing scrutiny.

Growth Guarantee Scheme-backed facilities may be available to eligible UK businesses, with pricing set by participating lenders. The government guarantee supports lender confidence but is not a guarantee to you as the borrower.

Where ownership structures are complex (e.g., multi-clinic groups), lenders may require cross-company guarantees or debentures. This can affect both fees and timelines.

Documentation that strengthens your case

Last 6–12 months of business bank statements and latest filed accounts.
Up-to-date management accounts and cash flow forecasts.
CQC registration and recent inspection outcomes (for regulated services).
Key contracts: NHS, insurers, or commissioners; evidence of payment performance.
Asset lists or quotes for equipment being financed; occupancy data for care settings.

Where rates typically land by sub-sector

Private clinics and dental practices with consistent revenues may achieve mid-to-lower-range unsecured pricing, particularly with solid accounts and personal guarantees. Veterinary and optical practices often see similar dynamics, with equipment finance frequently preferred for larger kit.

Care homes and homecare providers can see competitive rates when occupancy, fee cover, and CQC history are strong. Providers in turnaround or with uneven cash flows should expect higher margins or tighter structures.

Where businesses also manage premises upgrades or fit-outs, specialist lenders may price favourably if assets create tangible collateral. For cross-sector context on property-adjacent works, see our guide to building services loans.

Finance types and expected costs for healthcare

Choosing the right facility can save meaningful cost. Below is a concise, sector-focused overview to frame your options and likely pricing.

Unsecured and secured term loans

Use for working capital, growth projects, or practice acquisition top-ups. Unsecured terms are usually 1–6 years, pricing from ~6%–24% APR depending on strength and guarantees.

Secured loans (non-property security) can reduce the rate to ~5%–14% APR and extend terms. Lenders may take a debenture, personal guarantees, or charges over equipment.

Expect arrangement fees (1%–6%), possible early repayment charges, and legal costs for secured deals.

Asset and equipment finance

Ideal for medical imaging, dental chairs, lab machines, diagnostics, IT and software.
Hire Purchase and Finance Lease typically track ~6%–18% APR equivalent.
Terms 2–7 years, often with minimal document fees and clear end-of-term options.

Invoice finance for healthcare

Useful for providers billing commissioners, insurers, or NHS trusts on terms. Typical structure is 70%–95% advance against eligible invoices.

Service fees of ~0.5%–3.0% plus discount margin around Base + 2.5%–6.5% p.a. are common. Pricing can sharpen for high-quality debtors and strong audit outcomes.

Facilities can be whole turnover or selective, with recourse and non-recourse options available subject to eligibility.

Revolving credit and overdraft-style facilities

Flexible drawdown and repayment for short-term working capital spikes.
Variable pricing often at Base + 3%–12% with line fees and non-utilisation charges.
Suited to clinics with seasonal appointment flows or delayed insurance payments.

Revenue-based advances and card takings

Private-pay clinics, dental, optical, and aesthetics businesses sometimes use takings-based advances. You repay as a percentage of daily card settlements, which flexes with demand.

Expect factor rates of 1.10–1.50, producing a total repayable of £1.10–£1.50 per £1 advanced. Effective APR can be high, so treat these as short-term bridging tools rather than core finance.

Provider fees vary; always check the total payback, any fixed charges, and whether multiple advances can overlap.

VAT and corporation tax funding

3–12 month terms to smooth lump-sum tax outflows.
Pricing commonly ~6%–15% APR equivalent with modest arrangement fees.
Helpful to avoid cash-flow shocks after busy trading periods.

How to reduce costs, compare offers, and next steps

There are practical steps healthcare businesses can take to improve pricing and outcomes. Small improvements in documentation and structure can have a big impact on lender confidence.

First, prepare clean, recent financials and forecasts that explain seasonality, planned hires, and any CQC actions. Second, consider security: asset-backed structures often price keener than unsecured.

Third, match term to asset life so lenders see a sensible repayment profile. Finally, compare like-for-like, including fees, early settlement terms, and the true total amount payable.

Checklist before you request quotes

Define the funding purpose and amount with a simple budget and ROI case. Gather bank statements, management accounts, and key contracts or occupancy data.

Decide if personal guarantees or a deposit are acceptable to you. Shortlist product types that align with your cash flow and risk tolerance.

Use professional introductions to providers that actively lend to healthcare. This saves time and helps you receive relevant, transparent quotes.

Why use Best Business Loans

We don’t lend directly; our AI-powered platform helps match you with relevant lenders and brokers in the UK.
Submit one Quick Quote to explore options across unsecured loans, asset finance, invoice finance, VAT funding and more.
No obligation — you stay in full control, and you’ll see all costs and terms before deciding.

Clear, fair and not misleading — compliance note

All information on this page is general guidance, not advice. Pricing and eligibility are subject to status, affordability, security, and provider criteria.

Quotes you receive must set out rates, fees, and key terms clearly so you can make an informed decision. The government guarantee on any eligible scheme supports the lender, not you as the borrower.

We encourage you to seek independent professional advice where appropriate. By submitting an enquiry, you consent to being introduced to suitable finance providers.

Ready to explore your options?

BestBusinessLoans.ai helps UK healthcare firms find smarter, sector-relevant finance partners quickly. Complete a Quick Quote to check eligibility, compare structures, and understand likely costs without obligation.

It takes just a couple of minutes to get started. Our system will connect you with providers who understand the healthcare landscape.

Get your free Quick Quote now to see indicative rates and fees for your circumstances. Updated October 2025.

FAQs: Interest rates and fees for healthcare businesses

What rate can a profitable private clinic expect on an unsecured loan?

Indicatively, well-established clinics with strong financials might see unsecured pricing from c. 6%–12% APR. If risk factors are higher or trading is uneven, expect higher teens or low 20s. Actual offers depend on lender underwriting and market rates at the time.

How are invoice finance costs calculated for NHS or insurer invoicing?

You’ll typically pay a service fee (often 0.5%–3.0% of invoice value) plus a discount charge on funds drawn until payment. The discount margin is often Base Rate plus a risk margin, commonly +2.5% to +6.5%. Pricing may be keener for high-quality debtors and consistent collections.

Are equipment leases cheaper than unsecured loans?

Often yes, because the asset provides security, reducing lender risk. Many healthcare firms secure better pricing on Hire Purchase or Finance Lease for big-ticket medical equipment. Compare total cost and end-of-term options to choose the right structure.

Will I pay fees if I repay early?

Possibly — check your agreement. Some loans include early settlement or break costs, and leases can carry termination fees. Ask for a written explanation of early repayment terms before you sign.

Does the Growth Guarantee Scheme lower my rate automatically?

No. The government guarantee supports the lender’s risk, not the borrower directly. Lenders set pricing and terms, and eligibility criteria apply. Review the full cost and suitability like any other commercial offer.

What documents help me secure sharper pricing?

Current management accounts, bank statements, and clean filed accounts are key. CQC ratings, NHS or insurer contract schedules, and care occupancy data also help. The clearer your cash flows and controls, the more confidence lenders will have.

Do you charge upfront for matching me to a lender?

No. Submitting an enquiry through BestBusinessLoans.ai is free and without obligation. If a lender or broker proposes fees, these will be set out transparently in your documents before you proceed.

About Best Business Loans

BestBusinessLoans.ai is an independent introducer that helps established UK businesses explore commercial funding options. We do not provide loans directly; our AI-driven platform connects you with relevant lenders and brokers who may be able to help.

Your information is handled securely and only shared with suitable finance professionals for the purpose of your enquiry. We aim to present funding information that is clear, fair and not misleading to support informed decisions.

Have questions before you start? Email hello@bestbusinessloans.ai for guidance on your next steps.