Invoice Finance For The Healthcare Industry

Compare invoice finance online and have the leading lenders compete for your business. Get the best deal with ABC Finance.

Compare offers online Talk to an expert

Rated Excellent on Reviews.co.uk

What is invoice finance for healthcare and care homes?

Invoice finance for healthcare businesses and care homes is a type of finance used to improve cash flow of businesses that operate on delayed payment terms.

It enables the business to release the funds tied up in unpaid invoices by funding them within 24 hours of the invoice being raised, rather than waiting the contracted 30 days, 60 days or even 90 days.

How does it work?

Invoice finance works as follows:

Credit control – Either your funder or your business (depending on the type of facility chosen) chases the invoice.
Balance settled – Once the invoice is settled, you receive the balance, minus your agreed cost of finance.
Invoice issued – You send an invoice to your customer and also pass on a copy to your invoice finance provider.
Advanced payment – Within 24 hours and up to 95% of the invoice amount.

Are there different types to consider?

Yes, there are different types; they are:

Invoice discounting – Invoice discounting facilities allow you to release funds from your unpaid invoices and retain the credit control function in house, leaving you in full control of your sales ledger whilst benefiting from improved cashflow.
Invoice factoring – Invoice factoring releases funds from your unpaid invoices, but passes credit control functions to your funder, known as the factor.
Selective invoice finance – Selective invoice finance allows you to either pick and choose which invoices to finance, or even to just finance a single invoice.

What are the pros and cons of invoice finance for healthcare businesses?

The main pros are:

It’s a flexible way to borrow – Unlike a static facility, such as a business loan, an invoice finance facility can grow as your turnover increases and you’ll automatically borrow less during quieter times, keeping your finance costs down.
It’s fast – Once your facility is set up, you can expect to receive funds on future invoices within 24 hours of them being raised.
It improves cash flow – Receiving upfront payment on your B2B invoices improves your cashflow by speeding up your cashflow cycle.

The cons to consider are:

Loss of control – If you choose a full debt factoring facility, passing credit control over to your lender, you do lose an element of control over your relationship with your customers.
It has a cost – While the cost is low compared to some types of finance, there is still a cost involved and that will reduce your margin, even if it opens up the potential to grow your overall profit and turnover through improved cashflow.

Will I be eligible?

If your business operates on delayed payment terms of 30 days or longer, there is a very good chance that you’ll qualify.

For care homes that operate on delayed payment terms for NHS or government contracts, your chances of securing a strong deal are very high.

Of course, there is always an underwriting process to consider, but healthcare businesses are strong candidates for invoice financing.

What is the best way to secure invoice finance as a company in the healthcare industry?

The best way to secure invoice financing is through the ABC Finance invoice finance comparison tool.

We’ve completely rebuilt the application process to make things simpler for the customer and taken away the power from lenders.

All you have to do is input your business details and borrowing requirements, and within minutes, lenders begin competing for your business.

Each lender has one chance to win your business by uploading their best possible terms to capture your attention and secure your facility.

Once you have an offer that you’re happy with, you can take your application forward in a single click. If you require a bit more support and would like help making sense of the offers received, our team of experts are on hand to break things down and help you to make the right choice.