Factoring for healthcare providers

• Cash flow challenge: Payments from NHS trusts, insurance companies, or local authorities can taking weeks or months to clear, while staff wages, supplier costs, and equipment purchases can’t wait.

• Perfect for: Care homes, private medical practices, healthcare staffing agencies, and community care providers that experience delayed payments or seasonal cash flow pressures.

Novuna helps healthcare providers strengthen cash flow and working capital either through our award-winning in-house service or by comparing providers and making sure you have a great deal for your situation.

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What is healthcare factoring?

Healthcare factoring is a finance solution that allows medical providers to release cash tied up in unpaid invoices. Instead of waiting 30, 60, or even 90 days for payments, you sell your invoices to a factoring company for a large percentage of their value upfront.

This gives you fast access to working capital, which you can use to cover payroll, purchase medical supplies, or invest in new care contracts  all without taking on additional debt.

For UK healthcare providers, factoring is particularly effective when working with NHS contracts, private insurers, or local authorities, where payment cycles can vary widely.

Why factoring works for healthcare providers

Healthcare businesses operate under unique financial pressures from complex billing systems to delayed reimbursements and high staffing costs. Factoring offers a practical way to stay financially agile.

Key benefits include:

• Faster cash flow: Receive payment within 24-48 hours of issuing an invoice.

• Reduced stress: Free up admin time spent chasing overdue accounts.

• Reliable working capital: Keep operations running smoothly even when payment cycles fluctuate.

• No new debt: Factoring is based on your invoices, not a loan.

• Scalable funding: The more you bill, the more finance you can access.

Factoring can be used alongside other flexible finance options such as invoice discounting, working capital loans, and business overdrafts to support steady growth and investment.

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How healthcare factoring works

1. Issue your invoice to the insurer or client as usual.
2. Send a copy to your factoring provider.
3. Receive up to 90% of the invoice value upfront (often within 24 hours).
4. The provider collects payment from your client or payer.
5. You receive the remaining balance (minus fees) once payment clears.

For many healthcare businesses particularly those managing large payrolls or operating under framework contracts, this process creates predictable cash flow and peace of mind.

Common use cases for healthcare factoring

• Care homes managing local authority contracts with extended payment terms.

• Medical staffing agencies covering temporary and locum wages weekly, while waiting for monthly client payments.

• Private clinics awaiting insurance or patient reimbursements.

• Home care providers handling multiple small invoices across different contracts.

Factoring offers a consistent funding rhythm that helps providers plan ahead, pay staff on time, and meet CQC and operational commitments confidently.

How Novuna Business Cash Flow can help

At Novuna Business Cash Flow, we understand the financial pressures faced by UK healthcare organisations, from rising operational costs to irregular funding cycles.

Speak to our experts today and we will help you find a great fit for your situation.